Simon baker
Player Valuation: £10m
The transfer fee is split across the length of the contract like a loan....I admit to not being bright enough to understand this, but I believe the bottom line that we will lose lots on these.
If we paid £208k transfer fee for a player on a four year deal we would charge the accounts £1k per week. As 208 weeks in 4 years albeit it’s more Likely posted monthly not weekly. This is completely separate to wages.
You don’t expense the fee straight away the actual fee payment is a cash flow issue and doesn’t hit the accounts in one lump sum.
The fee I.e player is an asset we post the cost to the balance sheet and write it off over the contract Length.