Date: 6th August 2012 at 8:55am
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The two current ongoing transfers the club is struggling to finalise are both, in different ways, all about money. 


In the case of Adebeyor its about a club being held to ransom, in the case of Modric it may be about exchange rates and the Spanish economy. I said all last season that whatever happened to Ade there was no way he was going to lose money on the deal. 


Now, it appears, having agreed a deal with Spurs Ade is demanding City’s £5m transfer fee to make up the shortfall in earnings. The problem for City is there is no way out, £5m is 28 weeks wages, keep Ade another year and it costs them even more. Indeed keep him one more week, making 6 weeks of the transfer window, and it will have already cost them a million. 


Even if another club made a better offer it wouldn’t necessarily help, Ade doesn’t have to agree a move. If I was cynical I might think Levy was quite happy with the current situation, its hard to see how City can win and every week Ade remains on their books is a week off our wage bill. 


I have no sympathy for City, they didn’t have to offer the player such an obscene amount of money. I do wish it would give some of our supporters pause for thought though before they moan about the club not giving players huge pay rises, wishful thinking I know. 


The Modric sage is confusing but one thing to note is that sometimes stories quote the fee in Pounds, sometimes in Euros. This doesn’t matter as long as exchange rates are stable, only they’re not, the Euro has dropped about 10% against the Pound over the past 12 months. That would still not be a problem in a cash up front deal, you know the exchange rate on the day. Problem is that Real want stage payments, which immediately means one side or the other has a currency risk. 


If the deal is in sterling then Real run the risk of the pound strengthening against the euro, if the deal is in euros then we run the risk of getting less than we thought. From Levy’s behaviour I get the impression the deal would be in Euros. There is a further risk, what if Spain dropped out of the Euro altogether? It may seem a remote prospect but given the state of the Spanish economy (25% unemployment and a collapsing banking sector) it could happen. 


If you were owed money by a Spanish club in a currency that either they no longer belonged too or no longer existed would you ever get paid? 


To me it makes perfect sense for Levy to want to get paid for Modric up front, debts stretching out over several years are not a good idea in the present economic climate.


Written by jod