Eight Hundred and Ten Gao Shen, You Don't Owe Anyone!

After returning to Cheshire from Reading, Gao Shen took a day's rest and immediately returned to intensive work.

In the middle, when Huawei's engineer was in Leeds, he made a trip, called Big Mouth again, thanked him for his support, and made an appointment to find a time to get together again.

"As long as you don't talk about football, whenever you call Big Mouth, I will definitely be there when I have time!"

Yu Dazui on the other side of the phone was thick-skinned enough, he laughed and passed away without taking it seriously.

There is no thin-skinned person who can do great things.

...

The two-week national team match day, for Gao Shen, can really be described as being on tenterhooks.

The situation in Manchester City is very good now, and the only thing that can really stop the team from moving forward is the injury.

Other Premier League teams are helpless against Manchester City.

You can't beat it, you can't dig it, you can only trust God.

During the period, the Daily Mail did a disgusting thing, that is, it once again called for a thorough investigation of Manchester City's financial data, because they helped Mansour to settle an account. In the past few years, he was in Manchester City More than a billion pounds have been invested in it.

The Daily Mail took the lead, and the Sun and other good news media followed suit. There was a feeling that if I couldn't kill you on the court, I would just lay you down on another track.

Manchester City has indeed been losing money, and it has lost a lot, but the results are indeed really good.

A number of media were building momentum at the same time, so Manchester City had to respond.

Chief executive Gary Cook came forward to clarify that the club is indeed struggling to make ends meet, but he has repeatedly emphasized that Manchester City's revenue is growing at an alarming rate every year.

So why is the loss expanding?

Because of contract renewal.

To put it simply, when the team's performance is good, the salary of the players is raised, and a new contract is signed, the club will spend more and lose more. Isn't this a normal thing?

But Gary Cook has repeatedly stressed that the media has overstated Manchester City's debt.

"Sheikh Mansour runs Manchester City,

It is by no means a short-term focus, but a long-term business. "

"As long as you carefully study the companies under Sheikh Mansour, you can find that he never does business failures, does not seek huge profits, but seeks stability, so since the acquisition of Manchester City, he has been operating steadily step by step."

"Yes, we have improved very fast in terms of results, thanks to the coaching staff headed by Gao Shen, and our players, who have created our brilliance on the court, and at the same time helped the team develop very financially. fast."

"I believe that in a few years, the club will be able to be self-sufficient financially, it can be done and it is the general trend!"

Gary Cook's response was also well-founded, but no one ever tried to reason with him.

You Manchester City said that it can be done in the future, but it will take a few more years for you, but who can say what will happen in the future?

When Chelsea poached Peter Kenyon and Gourley from Manchester United, they also vowed to make a profit within a few years, but did they do it?

Peter Kenyon has already left, Chelsea is not yet profitable, and is still living on the blood transfusion of the boss.

Will Manchester City do the same?

What?

Chelsea in debt too?

That's about Chelsea, now it's about you Manchester City!

Besides, their car did not violate the financial fair competition regulations.

Having said that, I have to break it down again.

...

For these financial knowledge, Gao Shen is really at a loss. He really never cared about the club's financial situation.

I had no choice but to go home and ask my wife for advice.

Su Qing searched on the computer, and directly gave Gao Shen a copy of Arsenal's annual financial report for last season audited by Deloitte.

Looking at Gao Shen, they all looked like ants and couldn't understand them at all.

As a last resort, Su Qing could only explain patiently.

It turns out that the so-called capitalization operation is not just a simple sentence, or engage in loans and business.

The devil is in the financial statements.

In the reports of the Daily Mail and The Sun, Manchester City spent so much money to introduce players, so they directly added up all the investment of Manchester City in signings, saying that Manchester City invested one billion pounds, minus the revenue, the loss was astonishing .

But Gary Cook has stressed that they have overstated City's liabilities.

In fact, neither side was wrong.

For example, when Manchester City introduces a player, the transfer fee is 100 million pounds, and the contract is five years, so how should they be accounted for?

The answer is, amortization.

The so-called amortization is almost the same as the depreciation of fixed assets.

100 million pounds is divided into five years, that is, 20 million pounds per year, which is included in the cost year by year.

Then the interesting question comes, if Manchester City sells this player for 30 million pounds at the end of the fourth year, is it a loss? Still earned?

In the eyes of the media and fans, it must be a loss.

Damn it, needless to say?

100 million pounds became 30 million pounds, a total loss of 70 million pounds, all of which went to grandma's family.

But actually?

made money!

Because in the previous four years, 20 million pounds were amortized every year, and a total of 80 million pounds were amortized.

The unamortized £20 million is factored into the value of intangible assets, and financially, the player is actually only worth £20 million now, but he sold for £30 million for a profit of £10 million.

That's why Gary Cook would say that Manchester City's debt is overstated.

Judging from the financial statements, Manchester City really didn't lose so much money.

Because the transfer fees of many players are amortized year by year, how can Manchester City lose so much?

At least that's how it looks in financial reports.

...

After Su Qing's analysis, Gao Shen immediately understood the problem.

The reason why all companies go bankrupt is not in debt or profit, but in cash flow.

As long as the cash flow is cut off, the business will go bankrupt.

So to a certain extent, the team operates through this capitalization, and theoretically as long as the cash flow continues, it can continue to operate.

Clubs like Mansour and Abramovich, which are backed by amazing funds on hand, theoretically have cash flow that will not dry up, so this game can be played non-stop.

"Clubs such as Manchester United and Arsenal have not dared to buy people in recent years because they are limited by cash flow pressure. Even Real Madrid and Barcelona have membership systems, but Chelsea, Manchester City, and Paris Saint-Germain etc. The team has no problems in this regard, as long as the boss behind them is willing to inject capital, they can continue to play."

Gao Shen understands that UEFA's financial health regulations do not restrict clubs as much as they seem.

"A financial game can only be a financial game. Money will never appear and disappear out of thin air. Although it can be passed on to other clubs through re-transfers, the club does not get any benefits in essence. It's a show off to make the financial statements look better."

"This is actually why Manchester United, Arsenal, Bayern Munich and other teams will repeatedly request to review Manchester City's finances. The gameplay is not on the same track at all. How can it be compared?"

Su Qing's words made Gao Shen feel enlightened.

But in fact, if you really want to review it, it is very difficult.

More importantly, more and more capital will pour in in the future, and they will play capital football like Chelsea, Manchester City, Paris Saint-Germain and other teams.

They will want to gain a firm foothold in the shortest possible time, close the gap with strong teams, and even build their own brand, which requires them to pay a higher cost.

Under the hype, the transfer fee is naturally rising, and the annual salary of the players will also be higher and higher.

In the past, Gao Shen only knew about this capital game but didn't know why. After Su Qing's analysis, he really understood and felt a sense of worry at the same time.

Can this game of capital continue to play like this?

Even though the economy has been booming these years, overseas copyrights and Internet copyrights have been booming, and the income of the club has been rising steadily, but there is always a limit to this. The market cannot continue to support it. How many teams still have value?

"Do you know how grateful Manchester City is to you now?" Su Qing looked at Gao Shen and said.

She knew that her husband had been worried about his possible departure from Manchester City during the past period of time, and she also took this opportunity to explain it today.

"I believe you must have seen that in this game of capital operation, the real value is the most important, but it is difficult to reflect, and you have made every investment of Manchester City produce a corresponding output, even Double, triple, or even ten times the real value."

"Manchester City is really good to you, but you don't owe them or anyone else!" Su Qing expressed her conclusion.

When Gao Shen heard this, he felt much better.

Manchester City seems to be losing money now, but this is not because they are worthless, but because their revenue is too small to support such a big scene.

From a purely value perspective, Manchester City is one of the most valuable teams in world football today. Only Real Madrid and Barcelona can be compared with Manchester City.

And this is the value that Gao Shen has created for Manchester City in the past three years!

He nodded emphatically.

"From childhood, my father taught me to be down-to-earth and do as much as I have. When I grow up, I believe in seeking truth from facts in life. Therefore, we Leeds United cannot and are not qualified to embark on this kind of path. The operating route of capital operation."

Su Qing smiled sweetly, nodded and said, "Don't worry, isn't there still me here?"

She is the person who understands Gao Shen best in the world. She knows what Gao Shen wants and how to help him achieve his goals.

...

Manchester City's financial problems have almost become menstrual news, and they will be "criticized" by the media every once in a while.

Gao Shen didn't need to face these things at all, and he didn't need to pay attention to them. He just focused on leading the team to prepare for the upcoming Premier League and Champions League group matches.

The twelfth round of the Premier League was against Newcastle at home. Gao Shen still arranged for all non-South American internationals to play. Newcastle was defeated 3-0 cleanly at home.

The Magpies are currently ranked fifth in the Premier League. As a result, Manchester City has no power to fight back, which shows how strong the overall strength of Blue Moon is.

Three days later, Manchester City set off for Madrid to challenge Real Madrid at the Bernabeu.

This is a life and death battle for Real Madrid, but Manchester City has already qualified ahead of schedule.

Gao Shen played in a rotating lineup, adopted defensive counterattack tactics, and made a rational choice that a normal head coach would make under such circumstances.

As for whether Real Madrid can win, it depends on Mourinho himself.