Kylian Mbappe

[blueparrot]

Well yes, obviously. But you can still get a good price that would be the same whether there's six or three years left.

Depends whether its chelsea selling or us :)

 

[Cityfan]

Ta mate, so the players value does not depreciate to nothing over the contract period just the way in which we are allowed to account for the purchase.
We effectively get nothing for the player at the end of that period so we are better selling with time to go on a contract or is that a different thing.

Amortisation is important in when profits and losses are recorded.It doesn't over the long run make them occur, that is about total costs and income.
If you buy a player for £10M for and have him on a five year contract you will record the cost as £2M per season. When you buy him you will record his value on the balance sheet as£10M after one year you will record it as £8M and you will say you have spent £2M on him in that year.
Now if you sell a £10 player for £6M he will have cost you £4M whenever you sell him.
However if you sell him after one season you will record a further loss of £2M over and above the £2M recorded as spent. However if you sell him after three season because you have already recorded£6M of spend , you can record a £2M profit for the season you have sold him.

PS yes their value does fall to nothing at the end of the contract, see Milner,Zab etc we can't sell them and we don't hold them as playing assets.

 

[Neville Kneville]

Amortisation is important in when profits and losses are recorded.It doesn't over the long run make them occur, that is about total costs and income.
If you buy a player for £10M for and have him on a five year contract you will record the cost as £2M per season. When you buy him you will record his value on the balance sheet as£10M after one year you will record it as £8M and you will say you have spent £2M on him in that year.
Now if you sell a £10 player for £6M he will have cost you £4M whenever you sell him.
However if you sell him after one season you will record a further loss of £2M over and above the £2M recorded as spent. However if you sell him after three season because you have already recorded£6M of spend , you can record a £2M profit for thevseaso you have sold him.

Looks like a few more weeks of amortisation for Sanchez before the French accountant celebrates another financial masterpiece.

 

[Zin 'messiah' Zimmer]

 

[oakiecokie]

That sounds like we`ve got the other player from Monaco and I don`t mean Mbappe.

 

[kippax kid]

So it begins:)

 

[Ruzzles]

Nice

 

[andyhinch]

So it begins:)

George Weah coming back ?

 

[BAB.DAB]

Faith!

 

[Robanompivenov]

Amortisation is important in when profits and losses are recorded.It doesn't over the long run make them occur, that is about total costs and income.
If you buy a player for £10M for and have him on a five year contract you will record the cost as £2M per season. When you buy him you will record his value on the balance sheet as£10M after one year you will record it as £8M and you will say you have spent £2M on him in that year.
Now if you sell a £10 player for £6M he will have cost you £4M whenever you sell him.
However if you sell him after one season you will record a further loss of £2M over and above the £2M recorded as spent. However if you sell him after three season because you have already recorded£6M of spend , you can record a £2M profit for the season you have sold him.

PS yes their value does fall to nothing at the end of the contract, see Milner,Zab etc we can't sell them and we don't hold them as playing assets.

Bob on. Also if a player extends their contract the original transfer fee is further divided by the additional years on the contract. It's part of the reason we did so many renewals a few years ago.