[Link] All KI Transfer Rumours

I'm sorry but currency arbitrage is not something that you can predict easily a year in advance, that would be pure guesswork. My understanding of the subject is that it is a more short-term trading mechanism and often has to do with what politically is going on and how that would effect exchange rates from day-to-day. Correct me if I'm wrong, but unless a country is sitting in a good financial position and expects Europe to dive deeper into recession, then it work be * hard to guess whether the exchange rate in a year's time would fluctuate enough to make it worth the risk you place in the transaction. Not saying it doesn't happen that way, but I doubt football teams are that heavily involved in this business, but then again I probably no very little about football and it's finances.

 

If this deal goes through, this must the first time we have had no far eastern players at the club since...2004? Their is something a little sad about that

 

Will miss KI, always been one of my favourites.

Think he loved his time here and we loved seeing him play.

Thanks for the Scottish Cup Final goal, made my * day... SCREAMER !

Hail Hail

 

What you are saying is correct in a traders point of view.

But with the agreed payment period between clubs being agreed before an invoice has an issue date, any period in which a currency is more favorable is the date that club will issue it.

I woke closely with the big 4 accountancy firm partners, who deal a lot with football clubs and how they work. While they do not employ a currency trader, there is certainty arbitrage to take advantage of.

It is interesting though, as even a few pence across a fee like 6 million, can be quite a hefty amount.

 

+ 1

 

[QUOTE=UncleHo;3073111]Just for the record.

1. Anyone that has seen Ki's twitter or anything else will see that he has said that he did not say he wants to leave.

He said if the club accepts his bid, he will accept to leave.

* press twisting words.

2. The deal is far from accepted and Swansea still to speak to Ki or his reps about the move and personal terms. QUOTE]



I don't think it is exactly "twisting words" when:

1. Mjallby states: "Ki is not travelling. He is keen to move on"

2. Swansea chairman states openly that discussions have commenced: "We are currently holding discussions with player and agent over personal terms."

Overall, are the statements above true? Perhaps so, perhaps not, although I don't see why either party would decided to lie. But, in addition, the press have only written in line with direct statements from the relevant Clubs! "Twisting words" does seem to be a tad inaccurate?

As a footnote, many people have commented on this - where does this 2 million per annum for commercial Ki value get mentioned? I have missed the Club quotes attributed to this I think.

 

Peter Lawwell stated it a while ago. Someone posted a link somewhere in the Ki thread. Why is it so difficult to believe?

Mjallby has opened his mouth quite recently regarding club situations and let his belly rumble before, he is not that tactile. I follow KBS for news and ChannelNewsAsia for comments from the player himself. In fact I highly doubt Ki and Mjallby have sat down and discussed his future. I believe that is probably more Lawwell, Agents and Ki with the addition of Lennon.

So yes, I believe they could be twisted words from Ki, as translations of his twitter have always suggested he would be happy to leave, if the club accepts his bid.

Or as previously kicked off on here, because he said one day he wanted to play in the EPL/higher standard. People assumed he meant right that second.

It is an odd one, because I believe Asian news sources will be better placed to report on Ki, but the UK red tops and news will be better placed to report on clubs.

Either way, I think its going to happen, and as expressed, I just want what is best for Celtic.

 

Agree entirely re press sources / better placed. That is absolutely right to say, without doubt. What I was meaning, however, was that the press had not twisted words - rather, they had stated / quoted what had been said by senior representatives at both clubs.

As press stories go, this one had more back up than the vast majority, and just seemed to be a word for word repeat of declarations rather than a twisting of words.

Concerning 2 million a year - I don't remember saying I didn't believe / found it hard to believe; rather that I had still to see any quotes from the Club attributed to the fact. An agricultural punt on ye olde google did not result in much more success either, so was just wanting to see where this had been mentioned.

Perhaps lawwell did say this - however, if he did, then it will be easy enough to find somewhere, putting the whole debate to bed (and - basically - informing us all that the transfer value is, in fact, 3 million less than we are receiving.)

Until there is proof, however, the debate rages on.....

 

if both parties agree to make payment in GBP then the onus will be on the purchaser to deliver the agreed GBP amount.

If they keep their cash offshore in non GBP currencies the onus is on them to manage their fx exposure through suitably timed forward hedges being placed to match their longer term cash flow requirements to ensure they have sufficient GBP in place on the contracted date to effect the contracted payment.

ps- there's 15 months left on Ki's contract, just say that's worth 2.5m in aisan commerical revenue, Ki would also have to be paid over this 15m's 1.12m (17,500*64 weeks) so the net income would be circa 1.4m. Are you suggesting we let him go for free in 15m's time to earn 1.4m rather than sell him now on a deal of up to 8m?

 

Mjallby - There could have been more to what was said, as in " if we get an acceptable big, then he is keen to move on" but the red tops will focus on that last bit, and use it as a quote, which legally they can, and we all know... Have done before.

Ki revenue - I will do a sweep in both korean and english over the next few days and see what I come up with to back it up.

But interestingly enough, this is a good article that does show how powerful branding in the far east is.

http://www.dailyrecord.co.uk/sport/football/celtic-break-into-global-marketing-top-857965

I know, its from the same red tops I am slating, but if you google the contents of this, you will find more facts and figures.

 

The onus is on them, yes. But it is a well known fact that in multi currency offshore deals, companies always take advantage of fluctuating currency rates, and invoice on the most favorable.

Hardly any UK teams do transfers in GBP because far more global currencies are pegged to the USD or Euro. Thus making it easier for larger scale financial dealings.

Ki salary is no where near the figure you are quoting. It is around 4k usd per week.

 

Ki moved from Korea to Glasgow to earn just over 2 and a half grand a week? No chance of that :bbpd:

 

its also a well known fact that companies try to match the inflows with outflows, the majority of Celtic's outflows are in GBP and i'd be very surprised if they do not expect GBP to be delivered as payment for Ki, if this is the case they would want this GBP amount to be fixed now thus leaving any fx exposure at the mercy of the Purchaser should they chose to pay from USD or another currency.

Edit - Just checked Celtic's 2011 Financial Statements, note 28 'the majority of the transactions undertaken in the year are in sterling, therefore the Group's and Company's exposure to foreign currency risk in minimal'

in the statement of comprehensive income there is no mention of realised/unrealise exchange gains/losses.

Cant believe Ki's salary is around £2,600 a week.

 

in the press today that the money from the sale wont be reinvested in the squad, the board well and truly tightening the purse strings this is going to be one long 3 years.

 

Ki on 2.5k p/w.....simply cannot see that I am afraid.

 

He was signed as a youth player, with no real reputation. He has never had a contract increase, it is around 4k usd per week.

Believe it or not. I do think he earns a * tonne from his sponsors though. Also, if he where staying his contract demands would be much higher.

Korean football has salary caps, much as the US does, moving to Celtic on 4k usd per week would have been a dramatic increase.

 

Any proof for this? There is no way that a korean international moved across the world to earn 2.5k a week!

 

While what you said is true, it is also a well known fact British clubs, especially ones in the English league system work the majority of their large financial deals in offshore accounts. They obviously float all of their daily affairs in GBP as they will be dealing with GBP companies. However, with the vast sums they generate through the accounts it would be totally suicidal to do it via a british based GBP account.

Thus, even if Celtic issue Swansea an invoice for 6 million, they will chose the date in which within the agreed period has the most suitable exchange rate.

Making what I said still stand. If Swansea pay Celtic 6 million pounds from British pounds UK based account to British pounds UK based account, they will be liable for tax. By simply conducting this business in an offshore manner will completely avoid this.

 

And you think Celtic would fork out 17k per week, for someone with 2 seasons experience in a Korean league, at 20 years old?

EDIT - is there any proof he doesnt? I know its not a reliable source and I don't often use to to add weight to a debate, but FM has him down as 2k pounds per week too.

FM have been known to be pretty accurate with Salaries.

Another edit - Ibrahim, who is of similar rep and age has joined Celtic from Africa is on similar to the money stated.

 

You don't mention he was already an International player for a year as well, however. As well as this had also scored in more than one World Cup qualifier, and was reportedly the subject of interest from numerous clubs in Europe which would make him likely to be able to command more than that relative pittance in footballing terms......