Where do clubs stand with regards to injured players. As an example, the rags and hargreaves. Do they just say "you've spent 18mil, tough shit if he's injured."? Surely if you buy a player and he gets a career ending injury, it's a bit unfair to be told that you've done your dough and can't get a replacement. Or would they consider any insurance as income?
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FFP and injuries etc.
- Thread starter 2sheikhs
- Start date
Rammyblues
Well-Known Member
What do the rules say?
No idea. You need to be a hotshot Philadelphia lawyer to decipher most of it.Rammyblues said:What do the rules say?
Prestwich_Blue
Well-Known Member
When you buy a player, you amortise (write-off) his direct cost over the life of the initial contract. So a player bought on a 5-year contract for £25m will have £5m per year amortised in the profit an loss account and this is an expense.
If something happened to him after 2 years and he couldn't play again, I believe he then becomes an impaired asset and you have tot write his value down to zero. So he would have had £10m amortised after 2 years, leaving a book value of £15m. All of this would have to be charged to the P&L account in one go, in theory.
If something happened to him after 2 years and he couldn't play again, I believe he then becomes an impaired asset and you have tot write his value down to zero. So he would have had £10m amortised after 2 years, leaving a book value of £15m. All of this would have to be charged to the P&L account in one go, in theory.
S04
Well-Known Member
Prestwich_Blue said:When you buy a player, you amortise (write-off) his direct cost over the life of the initial contract. So a player bought on a 5-year contract for £25m will have £5m per year amortised in the profit an loss account and this is an expense.
If something happened to him after 2 years and he couldn't play again, I believe he then becomes an impaired asset and you have tot write his value down to zero. So he would have had £10m amortised after 2 years, leaving a book value of £15m. All of this would have to be charged to the P&L account in one go, in theory.
Are there insurance one wonders..
Prestwich_Blue
Well-Known Member
Nothing specific that I can see in FFPR regarding but players/clubs are usually insured so it would be income related to football activities I suppose and therefore allowable. however it might also be regarded as as capital item, as it relates to an asset.S04 said:Prestwich_Blue said:When you buy a player, you amortise (write-off) his direct cost over the life of the initial contract. So a player bought on a 5-year contract for £25m will have £5m per year amortised in the profit an loss account and this is an expense.
If something happened to him after 2 years and he couldn't play again, I believe he then becomes an impaired asset and you have tot write his value down to zero. So he would have had £10m amortised after 2 years, leaving a book value of £15m. All of this would have to be charged to the P&L account in one go, in theory.
Are there insurance one wonders..
whp.blue
Well-Known Member
RabidCity said:Doesn't the player insure himself since he is self-employed..
I doubt the club is protected against it.
players are not self employed they are contracted employees of the club
and the club may insure to protect their investment