I'm posting this here to avoid retarded future conversations on Suning and Inter's financial capabilities. This explains why Inter didn't sign Cancelo and Rafinha. It's from a very sharp FIF poster named este19:
Basic accounting principles: expense counts entirely in the year it's spent, and is comprised of things like player salaries, staff salaries, and loan fees going out, and coming in it's sponsorships, tickets, shirts... and also any difference between remaining amortization value of a player and his sale price when we sell players (for the sake of "book balancing" anyway, but technically this is "capital gains"). Then the other side from expense is capital. If we buy a player for 20m and he signs a 4-year deal, we book the cost as 5m in capital over each of those 4 years. If we extend his contract after year 1, the remaining 15m would be divided over 4 years instead of 3, so then his amortization would be 3.75m/yr, for example. And if we were to then sell him in year 3 for 13m when his remaining book value is 11.25m, we would only gain 1.75m.
What happened at the end of June was we had a fire sale on our youth team, with inflated values, and also extended some contracts (Candreva) to balance our books ("balance books" = incomes equal to current year expenses + current year amortization values). But, part of our settlement agreement is that besides balanced books, our ratio of incomes to our remaining player amortization costs must be at a certain value, which apparently is a target we missed (because Mario + Gabi), so the settlement agreement was extended. We don't know what that number is because it's redacted from the publicly-available settlement agreement, so only Inter & UEFA actually know what the numbers are. But clearly, with how we are behaving, Suning is confident we can "balance the books" this year, but don't think they can get our income high enough to meet the income/amortization ratio target in the settlement agreement. Which is why we are willing to spend a high loan fee for Vrsaljko this year... as long as we don't have to add any amortization costs until next fiscal year, when UEFA is done looking at our books.
I agree that I wanted Cancelo, and it would've been nice if we'd asked him to wait and insist on a transfer back to us. I think we didn't do that not because we didn't have the will, but because we knew there was no way the math would work out anyway. Even if we gave up signing Nainggolan so we could sign Cancelo, that still would've been 16m higher capital outlay. And for all we know, that 16m makes all the difference. Why else would we be so insistent on loan + option formula for everyone at this point?
The reason I posted the explanation of accounting principles was your idea of loan with obligation for Rafinha, and now again with your being bothered by Cancelo's sale being 10m + 30m instead of straight 40m. Both those instances you are acting like cash out the door is what matters. With capital purchases, when cash goes out the door doesn't matter. Only the book value of 40m matters for FFP, regardless of formula. We could've gotten that same deal from Valencia of delayed payments, but the point is that we couldn't afford to add an asset of that value at that time. And because the settlement agreement was extended, it sounds like we can't afford it this year either.
For as long as Suning owns us, you probably won't see us make many delayed payment plans like that... the obligation to purchase formula... because of how the rules changed. Such things only matter to a club that has cash-flow issues. Suning is ridiculously cash-rich. Cash isn't the problem, the books are the problem.