Hans-Dieter Flick

[JamDav1982]

Yeah. There's no problem for accounting the short term bumps if they are natural such as a sign on bonus or the sale of corporate seats. But if we're calculating a 5 year contract payment as one seasons income then we are going to stress the club for the next board.

But the core issue right now is that we are a football club but are not making enough from the core assets of a club, it's players and prize money.

We are not a selling club, but we HAVE to sell talents consistently to replace with players we are confident that through our tier 1 first team training and academy training, are being replaced by someone better.

Instead we are selling raw youth players too early to generate some minimal cashflow, while again, wage loading ourselves on players who are old and hold no resale value.

But our hands are tied to an extent, until we are able to remove the immense burden of the deferral wages of Lenglet, Frenkie and the added ones of Lewy, Gundy, Inigo.

Secondly Xavi failed in Europe. I'm not going to go into individual compettions, and instead let the missing out on WCC qualification speak for the failures itself. These early exits and no points gained in Europa League runs also cost us immensely.

Yeah failing so badly in Europe and not having Club World Cup money is another big hit.

It was one of the reasons the levers were pulled and justified.. yet the squander it on Lewa paying 50m fee for him at 36 and giving him 32m a season.

The age/salaries and profile of players signed from those levers have not done what they argued would.

The best players by a long way have been the ones already at club whether in first team or coming through.

 

[jamrock]

Speaking about the finances of a billion dollar organization is the same way we interpret the finances at home, is like Republicans always talking about the national debt, in terms of a personal credit card, it's bound to be wrong.

Selling cooperate seats well in advance is standard business practice across all sports, and once you get that money, you don't then say okay well spend it each year, as if that's how income came in.

I'm not sure how nike giving us a signing on bonus is them taking money away that would other wise have been given over the life time of the contract, a signing on bonus is just what it sounds like, we will give you X dollars to sign the contract.

How a sign on bonus typically works, since we like to simplify complex finances, is something like this.

I'll use my job as an example, we will give you a sign on bonus of X, and if you leave the company before a specified time, that bonus has to be paid back.

What I've never in my professional life seen it has, is we will give you $10 now, but short you $10 later, that's not a bonus that's a interest free loan, lol.

If we are getting a loan from nike, that would be news.

Club WC is definitely an L.

But long term, again to over simplify the position is this.

Wage bill around - 400m decrease of 200m
New stadium revenue - projected between 175-300m, more than we made at the old stadium
New sponsors (nike, Spotify/whoever) + 40-60m

Debts - 25% of TV deal. (40-50m).

The simple maths tells you, that once we get back into the stadium, most of our problems will be resolved, most important thing at that point is paying off the debts.

 

[JamDav1982]

It was already reported the length of the corporate would be longer than would usually be sold off as money is needed to cover payment due on stadium loan.

The Nike deal if get 100/150 upfront is 100/150m Nike would otherwise be paying across 10 years. Possibly even more as opposed to pay a 'bonus' now.

More money paid now at expense of income later.

It will most likely all lead to Barca changing their model or at least trying to persuade the socios to.

The levers money has largely been a mess and far far more value has been added to the team from players already there an in the youth sides.

 

[Barcaman]

Talked to my best man from Germany who follows football and he confirmed what we've been hearing.
Flick is considered clown there.

It will be a bumpy ride.

 

[Gnidrologist]

In what way? Behavior or football knowledge?

 

[jamrock]

Where is the source about that nike deal?

Because even if you're not just making that up, thats just smart business right there, if we said instead of giving us 80m per year, give us 70m, and pay us 150 up from, the club needs money now.

Have you ever heard about the the time value of money?.

That would mean we got all that money up front, while still having the biggest Jersey deal in Europe or close to it.

Again smart business to sell the seats out for lets say 8 years instead of 5, to help pay for the very stadium that's being built.

So literally nothing that your are trying to make out as negative, is in fact a negative, is a slight amount of thought is put into it.

I don't know how many times I gotta tell you this, but I'll say it one last time.

We sold our TV rights for 700m and bought players that window for a net of 50m euros.

Where did the other 650m go? Did it just disappear? Or did the club use it to stabilize it's finances?.

 

[JamDav1982]

Nike contracts with Barca and other clubs have not been paid with this bonus in past.

There is zero chance Nike would pay Barca any more than they see as value over 10 years.

All that is happening is Barca trying to get money upfront at expense of other years due to them failing to hit their projected accounts.

If Barca were better position and did not need this 100m+ now they would not be looking for it. It is to plug gaps.

Barca themselves said the levers would not have been needed if not for FFP.

Reverter left and reported being one of reason is he did not like the levers approach and increasing debt at same time as selling assets as best future of club.

 

[Barcaman]

In what way? Behavior or football knowledge?

Mentioned his tactical talks that are laughable and that players don't respect him.

He took over Bayern from Kovac who was hated there for his strictness and basically ran on auto-pilot. Got exposed badly with German NT.

 

[jamrock]

Nike contracts with Barca and other clubs have not been paid with this bonus in past.

There is zero chance Nike would pay Barca any more than they see as value over 10 years.

All that is happening is Barca trying to get money upfront at expense of other years due to them failing to hit their projected accounts.

If Barca were better position and did not need this 100m+ now they would not be looking for it. It is to plug gaps.

So basically you just made it up, thought so.

And of course we need the money now, that's obvious and the smart thing to do.

Those 150m now is 3x more valuable than the extra 10m over 10 years, again bro time value of money.

Tell me what did we do with the extra 600m we got from selling the TV rights? Did we use it all to buy players?

 

[JamDav1982]

Mentioned his tactical talks that are laughable and that players don't respect him.

He took over Bayern from Kovac who was hated there for his strictness and basically ran on auto-pilot. Got exposed badly with German NT.

There are videos of him giving team talks for Germany at the WC and it does look like players dont have much time for him.

They argue back and just have a general air of not having all that much respect.

 

[JamDav1982]

So basically you just made it up, thought so.

And of course we need the money now, that's obvious and the smart thing to do.

Those 150m now is 3x more valuable than the extra 10m over 10 years, again bro time value of money.

Tell me what did we do with the extra 600m we got from selling the TV rights? Did we use it all to buy players?

No.. it is not how these contracts are normally paid.. evidenced in the past.

Believe what you like. Up to you.

It is income now at expense of future again.

You can accuse Laporta of selling a lie to socios if you like but he sold the levers vote as to give them room in market to update squad and said otherwise would not be doing it.

It is still up online.

 

[jamrock]

"The time value of money is the widely accepted conjecture that there is greater benefit to receiving a sum of money now rather than an identical sum later".

Imma just leave this here for everyone who doesn't understand this basic concept.

One of the first things we learnt in business school, clearly the people who run Barcelona also learnt this concept, that god for that.

 

[JamDav1982]

"The time value of money is the widely accepted conjecture that there is greater benefit to receiving a sum of money now rather than an identical sum later".

Imma just leave this here for everyone who doesn't understand this basic concept.

One of the first things we learnt in business school, clearly the people who run Barcelona also learnt this concept, that god for that.

As said Reverter did not approve of the lever model and reported as one of reasons he left.

I am sure he doesnt need your 'business school'.

Barca will eventually have to sell off part of club due to these decisions. Wait and see.

It will be the battle ground of this next election or the one after and Laporta will be long gone when has to be done.

 

[Horatio]

Talked to my best man from Germany who follows football and he confirmed what we've been hearing.
Flick is considered clown there.

It will be a bumpy ride.

got me worried and ruined my mood. Was low-key excited about new season starting. maybe do best to lower expectations as much as possible

 

[Loki]

Talked to my best man from Germany who follows football and he confirmed what we've been hearing.
Flick is considered clown there.

It will be a bumpy ride.

I don't know who you talked to, but he should have told you Bayern polarizes in Germany like no other team. Either you're a Bayern fan or you hate Bayern. So most people talking about Bayern players/staff in a negative way do it out of spite.
Secondly, I read/participate in the biggest German football forum daily, which has around the same frequency as Redcafe and many Bayern fans wanted rather him to return, then continue with Nagelsmann or getting Kompany.
Yes, he became a bit of a meme in Germany after the documentary of the Nationalteam, where his speeches to the team became public, but many didn't forget what he had achieved with Bayern.