Social media went wild after the news went viral that Argentine midfielder Enzo Fernandez has penned a British-record deal of £107m, (€121m) from Benfica to Chelsea
The 22-year-old’s eight and a half year deal with Chelsea, surpasses the £100m Manchester City paid for Jack Grealish from Aston Villa 18 months ago.
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A certified financial education instructor, Kalu Aja responded to the news via his official twitter handle.
Explaining the business side of the deal for Chelsea, the financial expert believes that the London club is investing their money wisely by buying the player at the worth of €34m a year.
Kalu, further opined that if Chelsea were to say sell Fernandez next year at €50m, the club would have made a profit of €16m.
He described what Chelsea has done as “football finance.”
Contract is €121 for a 8.5 year deal
Cost now? €34m
(sell him next year at €50, its a "profit" of €16)
It's called Football Finance. pic.twitter.com/ywX2EJZqbL
— Kalu Aja (@FinPlanKaluAja1) February 1, 2023
Reacting to the tweet other people also expressed their perspective towards the deal.
Its called amortization which will be for 8yrs and nobody will pay €50m in 8yrs for a player the owners want to sell. You also should factor in the weekly wages over 8yrs of the player. Football finance is beyond just transfer fee
— Dom (@Dominic_Ebi) February 1, 2023
If it works that way, every team will do same. I believe the value of a player is based on unammotized value. That is why the price drop as contract closes down or the player leaves for free.
— The Truth (@babs_thetruth) February 1, 2023
16 million profit? Not so, if he he is sold for 50 million euros. Who is going to pay off the amortization on the long run to keep balancing the book every year for the remainder of the contract?
— Arsenal Babe (@arsenalbabe_) February 1, 2023
Chief you’re confusing the players contract with the sale contract with his former club. If you sell him for €50m next year you’d still owe Benfica the unpaid portion from the €121m fee, regardless of whether he plays for you or not.
— Mustapha (@MoMustaphaJ) February 1, 2023
You missed the track on this one boss. No matter the amortisation policy, profit is always selling price less carrying value… not SP less cash paid. If they sell at 50 next year, thats a significant loss!
— _vector (@Avictomama) February 1, 2023
