Today in Sports
  • Home
  • Featured News
  • Football
  • Basketball
  • Baseball
  • More
    • Rugby
    • Golf
    • Boxing
    • Soccer
    • NBA
    • Racing
    • Cricket
  • DMCA
  • Disclaimer
  • Cookie Privacy Policy
  • Privacy Policy
  • Terms and Conditions
  • Contact us
No Result
View All Result
  • Home
  • Featured News
  • Football
  • Basketball
  • Baseball
  • More
    • Rugby
    • Golf
    • Boxing
    • Soccer
    • NBA
    • Racing
    • Cricket
No Result
View All Result
Today in Sports
No Result
View All Result

What is amortisation? | FourFourTwo

March 18, 2025
in Soccer
0
Home Soccer
Share on FacebookShare on Twitter


You might also like

Al-Hilal growing impatient with Bruno Fernandes and could pull the plug within a week – Man United News And Transfer News

Champions League photo that moves everyone: Luis Enrique pays heartfelt tribute to his late daughter Xana

PSG youngster Doue makes Champions League final history

In the modern game, fans seem to spend just as much time fretting over the financial health of their favourite team as they do about how they’re performing on the pitch.

“But it’s amortised over five years,” you may hear your average Chelsea-clad boffin say as they usher in their umpteenth multi-million-pound signing of the summer through the door.

But what does amortisation actually mean? Here’s a quick breakdown for you…

Enzo Fernandez became the Premier League’s most expensive player when he signed for Chelsea in 2023 (Image credit: Dan Istitene/Getty Images)

Amortisation is an accounting method used by football clubs to ease the burden placed on their balance sheets by ultra-expensive transfers.

Simply put, rather than a £30m player (Player X) going down as a £30m cost in the first year he signs, a club can opt to spread that cost over the length of their new man’s contract.

BRIGHTON, ENGLAND - AUGUST 24: Harry Maguire of Manchester United gestures during the Premier League match between Brighton & Hove Albion FC and Manchester United FC at Amex Stadium on August 24, 2024 in Brighton, England. (Photo by Eddie Keogh/Getty Images)

The Athletic revealed earlier this year that an added benefit to extending Harry Maguire’s contract was the extra financial room it supplied via lengthier amortisation (Image credit: Getty Images)

Say Player X is handed a three-year contract, rather than taking a £30m hit to their accounts in the first year, it will go down as a recurring £10m cost for the next three years.

Conversely, clubs can count the full sale price of an academy player leaving on their books – since they weren’t signed over a number of years.

The best features, fun and footballing quizzes, straight to your inbox every week.

In Profit and Sustainability Rules (PSR) terms, therefore, if a club sells an academy graduate for £30m and buys Player X for £30m the next day, on those same terms, the accounts will show a profit of £20m to use on further purchases in that year, rather than a balance of zero.

In most cases, amortisation is unrelated to when actual money changes hands, as it is merely an accounting method to track the financial health of a club for purposes like PSR.

Chelsea's Cole Palmer looks over his shoulder during the Premier League match against Southampton at Stamford Bridge on 25 February, 2025

The Blues seem commited to long contracts regardless of a recent rule change, extending Cole Palmer’s terms to 2033 recently. (Image credit: Alamy)

Premier League clubs voted to bring in rules at the end of 2023 which imposed a five-year limit on amortising transfer fees, following a string of Chelsea signings who were tied down to long-term contracts for this reason.

Despite this, you can give a player as long a contract as you like. Go ahead, Chelsea…



Source link

Tags: amortisationFourFourTwo
Share30Tweet19

Recommended For You

Al-Hilal growing impatient with Bruno Fernandes and could pull the plug within a week – Man United News And Transfer News

by TODAY IN SPORTS
May 31, 2025
0
Al-Hilal growing impatient with Bruno Fernandes and could pull the plug within a week – Man United News And Transfer News

1 Manchester United finished 15th in the Premier League and recently missed out on signing Liam Delap, but all fans care about is the future of Bruno Fernandes....

Read more

Champions League photo that moves everyone: Luis Enrique pays heartfelt tribute to his late daughter Xana

by TODAY IN SPORTS
May 31, 2025
0
Champions League photo that moves everyone: Luis Enrique pays heartfelt tribute to his late daughter Xana

Luis Enrique, newly crowned UEFA Champions League winner with Paris Saint-Germain, stayed true to a heartfelt promise by paying tribute to his late daughter Xana moments after securing...

Read more

PSG youngster Doue makes Champions League final history

by TODAY IN SPORTS
May 31, 2025
0
PSG youngster Doue makes Champions League final history

Paris Saint-Germain youngster Desire Doue made history in the Champions League final after scoring one goal and assisting another against Inter. Doue made his first impact after just...

Read more

Man United want to sign Viktor Gyokeres after Liam Delap blow

by TODAY IN SPORTS
May 31, 2025
0
Man United want to sign Viktor Gyokeres after Liam Delap blow

Ruben Amorim, Manager of Manchester United, speaks to the media. (Photo by Matt McNulty/Getty Images) Manchester United are now plotting a summer move for Viktor Gyokeres after missing...

Read more

Juventus star makes the top ten defensive midfielder in the world

by TODAY IN SPORTS
May 31, 2025
0
Juventus star makes the top ten defensive midfielder in the world

Manuel Locatelli enjoyed an excellent season with Juventus, delivering consistent performances under two different managers. While some critics have questioned his development since joining the club in 2021,...

Read more
Next Post
Virgil van Dijk €100m PSG offer claim rejected – Latest Liverpool FC News – Liverpool FC

Virgil van Dijk €100m PSG offer claim rejected - Latest Liverpool FC News - Liverpool FC

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related News

Mumbai Indians identify Kwena Maphaka as Dilshan Madushanka’s substitute for IPL 2024

Mumbai Indians identify Kwena Maphaka as Dilshan Madushanka’s substitute for IPL 2024

March 23, 2024
New Callaway Apex Goes AI with Three New Iron Units

New Callaway Apex Goes AI with Three New Iron Units

August 12, 2024
Tyrell Malacia returns to form with fantastic performance in big PSV Eindhoven win – Man United News And Transfer News

Tyrell Malacia returns to form with fantastic performance in big PSV Eindhoven win – Man United News And Transfer News

March 16, 2025

Browse by Category

  • Athletics
  • Baseball
  • Basketball
  • Boxing
  • Cricket
  • Football
  • Golf
  • MMA
  • NBA
  • NFL
  • Racing
  • Rugby
  • Soccer
  • Tennis
Today in Sports

Get the Latest Sports News and Updates on TodayInSports.net. Soccer News, Basketball News, Baseball News, Golf News, Boxing News and More!

CATEGORIES

  • Athletics
  • Baseball
  • Basketball
  • Boxing
  • Cricket
  • Football
  • Golf
  • MMA
  • NBA
  • NFL
  • Racing
  • Rugby
  • Soccer
  • Tennis

Recent News

  • Al-Hilal growing impatient with Bruno Fernandes and could pull the plug within a week – Man United News And Transfer News
  • Jon Jones fans challenge haters wanting UFC champion stripped of title with new petition of their own
  • Meyer Shank Racing Acura Rules Detroit
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Get the Latest Sports News and Updates on TodayInSports.net.
  • Privacy Policy
  • Terms and Conditions

Copyright © 2024 Today in Sports.
Today in Sports is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Featured News
  • Football
  • Basketball
  • Baseball
  • More
    • Rugby
    • Golf
    • Boxing
    • Soccer
    • NBA
    • Racing
    • Cricket

Copyright © 2024 Today in Sports.
Today in Sports is not responsible for the content of external sites.