- 17 Jun 2019
- North Manchester
- Team supported
- Manchester City FC
Yes, but I think player values are amortized, not depreciated, since they are viewed as intangible assets?
You’re absolutely correct. You certainly know your onions Svennis (Dennis I presume?).
I was trying to convey that the initial asset valuation (purchase cost) reduced annually by a percentage relative to the number of years of the contract - which is amortisation (as depreciation would presume that the asset value reduced by more than amortisation - such as if the players legs fell off - thus making the asset depreciate very tangibly) but I was trying to get it across using terminology that most people would be familiar with.
PS. I’m not pretending to be an accountant btw. Though I have run a few P&Ls down the years, with the support of some excellent MAs, and so have a fair grasp of the way that assets values are managed in a business.