West Ham are set to write off almost £21m in two failed transfers this summer.
Nikola Vlasic was bought by David Moyes from CSKA Moscow in August 2021 for €25m (£21.6m)
Things didn’t work out and West Ham included a €13m (£11.2m) option in a loan deal to Torino last season, but they failed to activate it.
Torino has since offered €10m, and West Ham counter offered €12m but could be forced to settle at €11m (£9.5m)
If accepted that would mean the Hammers has written off £12m in just two years on Vlasic when he is sold.
Gianluca Scamacca was bought from Sassuolo for €40m (£35.5m) last summer with €35m transfer fee and €5m (£4.3m) in add-ons.
It is unlikely the add-ons have been activated, so the Hammers investment is around £30.5m for the Italian striker.
If the Hammers is sold for €25m (£21.6m) plus €5m £4.3m) in tough add-ons, that is another £8.9m written off, excluding add-ons on either deal.
Warning, this article is deliberately misleading and fails to take account of amortisation of the transfer fee. The actual loss chargeable to the club’s P&L account is a total of €10m for both Vlasic and Scamacca.
That’s not entirely true. Vlassic will have had 40% of his £22m fee written down for 2 seasons already. Plus there’s the loan fee…
If Scamacca is sold for £25m plus add-ons his fee is approx break even surely?
10m euros for Vlassic is around £8.5m from approx £13m left on books is a £4.5m loss from today’s value and we got a loan fee of 2m euros I suppose?
The fee for Vlasic was €30m on a five year deal, so amortisation of €6 per year for two years, leaving a book value of €18m, rumoured fee from Torino of €11m, leaving a loss of €7m.
The fee for Scamacca was €35m, again on a five year deal, so amortisation of €7m, leaving a book value of £28m, rumoured fee from Atalanta of €25m, leaving a loss of €3m.
Loan fees are normally taken to the P&L account in the period they are received.
Yes except your figures include add-ons that will never be paid and disregard the Vlassic loan fee so nowhere near as bad a loss not that it matters too much as we haven’t spent anything yet.
The fee for Vlasic was widely reported as €30m (£26.8m), plus €9m (£7.7m).