Kalinic brings Milan profit

by | Aug 7, 2018 16:00

Though Milan will make a loss on Nikola Kalinic in terms of transfer fee, his sale will still bring a €10m bonus on the balance sheet.

The Croatian is set to join Atletico Madrid, and is in Spain for a medical today.

The Rossoneri paid a total of €22.5m for the striker who joined just last summer, arriving on an initial loan with an obligation to buy.

Football clubs break down the cost of a transfer fee over the length of a contract, with a player’s book value depreciating over the length of that contract.

Though Milan will make a loss on Nikola Kalinic in terms of transfer fee, his sale will still bring a €10m bonus on the balance sheet.

The Croatian is set to join Atletico Madrid, and is in Spain for a medical today.

The Rossoneri paid a total of €22.5m for the striker who joined just last summer, arriving on an initial loan with an obligation to buy.

Football clubs break down the cost of a transfer fee over the length of a contract, with a player’s book value depreciating over the length of that contract.

That’s why the Diavolo were able to take Gonzalo Higuain on an €18m loan from Juventus with a €36m option to buy.

With Kalinic’s fee and a four year contract, the rumoured €15m sale is lower than his booked value of around €16.9m – i.e €22.5m minus the €5.6m for the first year of his contract.

However, Calcio e Finanza explains that there will be a gross saving of around €6.4m on his salary per year, which along with bonuses and the amortisation per year will create a positive effect on the balance sheet of €10.2m.

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