Maguire hails 'very smart' Arsenal as £75m part-exchange Martinez deal plotted
A part-exchange deal between Arsenal and Inter Milan for Lautaro Martinez is “very smart” in terms of the club’s wage bill and cash flow.
So says finance guru Kieran Maguire, speaking exclusively to Football Insider about the Gunners’ hunt for the 23-year-old Argentinian striker.
This site revealed on 28th July that Arsenal are offering Hector Bellerin, who is valued at £30mllion, as part of a club-record offer for £75m-rated Martinez.
Both players’ current deals run out in 2023.
Maguire explains that a player-plus-cash deal could be beneficial for the club’s balance sheet and financial planning.
“I don’t see there being tax benefits as such,” he told Football Insider correspondent Adam Williams.
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“If you take a look at Arsenal’s accounts, they have actually had negative tax for the last couple of years.
“I don’t perceive Arsenal having much of a tax concern for a few years because they will have lost money in 2021 as well. So that wouldn’t be the driver.
“The focus would be in terms of cash flow. When you sell a player, you have to pay the VAT on the deal immediately. This is something people do miss out on.
“So if they sell a player for £45m and the buying team says they will pay in four instalments, you then have to add on 20 per cent VAT.
“So the selling club becomes liable for the VAT on that deal immediately. If you swap players, there is less VAT you have to deal with and it can be very smart in the respect.
“You also have to look at the net impact on the wages. If you look at the Sanchez and Mkhitaryan swap, that cost United a net £5m in wages.”