07 Aug 2025 21:46:40
Long time reader, not posted before but love the site, love the club, and excited for the new season.
Question for people with knowledge of the finances.
The transfer fee is amortised across the length of the contract. Are the add ons treated the same way?
07 Aug 2025 22:30:07
I'd be interested in finding that out too.
My working assumption is that the add ons are expensed in the year in which they are achieved (and therefore payable), but I am not sure.
08 Aug 2025 07:31:46
I would assume so too Zed. You would amortise the transfer fee as this is a known cost thus spread over the length of the known contract term
Add ons though are subjective costs that the club may or may not incur thus, from an accounting perspective, would you include millions of such costs within your accounts? If they are not to be paid, how can you then amend those accounts in past years showing essentially incorrect liabilities?
I'd like to know too, but not sure how they would be applied other than when they become known liabilities.