TV right maybe. In particular the mid-low table teams got less money and this reduce the competitiveness among the teams. I would also say some legislations stuff like the split of the acquisition cost of a player without a boundary limit (looking Chelsea market). Basically the depreciation is based on the contract years of the player. While the cost is accounted following the depreciation schema the incomes are reported 100% in the year of creation. An example: Chelsea will sell in the 2024 Nicolas Jackson for 40 millions. In the meanwhile they will acquire Sesko for 80 millions.
Sesko will sign a contract among 8 years. This mean that the cost will be 10 millions each year. So the 2024 Chelsea will count -10 and + 40 = +30. Hopefully this normative hole will be solved soon.
They just changed it so amortization is limited to 5 years, regardless of contract length. Jackson was bought for 37 million, so that’s 7.4m for 5 years. Selling Jackson for 40m in 2024 would be only 10m in profit on the sale, because there is 4 years of depreciation left.
TV right maybe. In particular the mid-low table teams got less money and this reduce the competitiveness among the teams. I would also say some legislations stuff like the split of the acquisition cost of a player without a boundary limit (looking Chelsea market). Basically the depreciation is based on the contract years of the player. While the cost is accounted following the depreciation schema the incomes are reported 100% in the year of creation. An example: Chelsea will sell in the 2024 Nicolas Jackson for 40 millions. In the meanwhile they will acquire Sesko for 80 millions. Sesko will sign a contract among 8 years. This mean that the cost will be 10 millions each year. So the 2024 Chelsea will count -10 and + 40 = +30. Hopefully this normative hole will be solved soon.
They just changed it so amortization is limited to 5 years, regardless of contract length. Jackson was bought for 37 million, so that’s 7.4m for 5 years. Selling Jackson for 40m in 2024 would be only 10m in profit on the sale, because there is 4 years of depreciation left.
It’s not retrospective. The Chelsea contracts signed before the change came in to effect are still over the 8 years or however long.