Good article here that explains it in detail...
https://shewore.com/2018/04/25/the-t...50m-war-chest/
Basically £50m is the amount that we can afford to raise our operational costs by each year and still break even - the amount that we have to spend on transfers could be anything.
I wouldn't be surprised if our spending is capped to some extent, we've spent a hell of a lot by our standards in recent years on contracts as well as transfer fees. I don't expect much big money spending this summer from us, we'll have to be a little bit clever with how we do our business.
I think it's more about the how much extra we can add to our operational costs each year as a result of the structures of the deals that we agree (both incoming and outgoing)?
Let's say we agree a £40m fee for a player on a £100k/week, 4 year contract - if that fee is being repaid in 4 annual instalments of £10m, then we're only committing to an extra £15m/year in additional operational costs (10m in fees, 5m in wages), leaving us with a further £35m out of our £50m budget.
Losing Cazorla will probably slash around £5m/year from our wage bill, so that takes that remaining £35m back up to £40m.
If Wilshere were to move on then that's another £5m in wages that we claw back, so that £40m goes up to £45m.
If we're looking at tying any players down to new deals then those wage increases will also have to come out of out budget, so it goes back down again.
And so on, and so on.
The point is, it's not quite as simple as "if we buy player X for £50m then that's our whole budget gone" or "if we sell player Y for £30m then we'll have another £30m to spend on transfers" - yes, spending will still have to be carefully balanced with income, but it's all little more complex than it looks, and that £50m budget increase will probably go a lot further than people think.
(At least I hope that's what it all means - you can never really tell with Arsenal.)
Last edited by I am invisible; 22-05-2018 at 02:52 PM.
presumably Mertesacker's new backroom role will not be at whatever ludicrous sum he was getting as a player, so that's a saving at least?
Mate, if Per can turn our academy into a constant conveyor belt of talent then I'll happily pay him what he likes! Ditto for Mislintat with scouting.
Maybe we should have these two on commission?
Heavily linked with Seri. Apparently Emery is a big fan and wanted him at PSG.
The guy is a rock. Exactly the type of player we need in the middle to add strength + power.
VISIT RWANDA
NOTE: The location of this post has been moved and the thread title (which was previously Wenger is Leaving) has been manipulated by a notorious pro-Wenger moderator. What was previously a message that contained no profanity and made a comment on a real life event has now been manipulated by a deliberately provocative title. An old and crude propaganda and censorship technique.