07 Jun 2020 16:54:25
Hi Ed002,

Hope you are doing well mate. Quick question to pick your knowledge on finances. If a club buys a player for say 80 MP (transfer fee) and decides to go in for structured payments of 20 MP for 4 years.

In this case are structured payments accounted as player amortization for four years until the time the player is with the club?

Second question- If however everything is paid upfront does it get realized under a different line item or is it still under player amortization.

Appreciate any insight.

{Ed002's Note - You are mixing two things here. The amortized amount is the total cost of the player spread over his contract period. In terms of the transfer fee being paid in one payment that can be taken in one year but other costs related to the player (including insurance, agent fees) would be spread over the length of the contract.}

1.) 07 Jun 2020
07 Jun 2020 17:30:15
Makes sense. Sorry if I am getting annoying but want more clarity on this as I struggle understanding some parts of it. So now it is clear that net costs including agent fees, registration, insurance etc make up for player amortization. What happens if the player is transferred in 2 years? Does the player amortization line item get adjusted for the years subsequent to his sale?

One more thing is structured payments is the option taken. Is it right to think that for the first year the first installment due + miscellaneous costs tied to player will be on the line item for player amortization for that year?

Thanks again!

{Ed002's Note - I really don't want to get in to the finances but if a player is sold an adjustment has to be made and offset against the fee obtained.}