[ITA] Serie A 2013/2014 (43 Viewers)

j0ker

Capo di tutti capi
Jan 5, 2006
22,892
Amortization. It's payed transfer fee spread equally over duration of contract. Example: Juve payed around 11,5m for Vidal with duration of contract for 5 years. 11,5/5=2,3m amortization
Thanks, though some numbers do not add up but I've no idea how these things work out.
 

Vlad

In Allegri We Trust
May 23, 2011
24,064
Thanks, though some numbers do not add up but I've no idea how these things work out.
Numbers that don't add up are renewals and they're bit more complicated. Buffon for example 55m fee in 2001, 5 years of contract till 2006= 11m per year amortization. Buffon signed new contract in 2004, so his value till that point was 55m-33m (amortization 3 years X 11m)=22m. Then you spread 22m over the duration of the next contract and so on...
 

Gerd

Senior Member
Dec 25, 2011
5,955
Thanks, though some numbers do not add up but I've no idea how these things work out.
Pratically if you buy a player for 20 mil and give him a 5 year contract , in theory with every passing year his value drops by 20/5=4 mil . So in the second year his value drops to 16 , third year 12 , foruth year 8 , fifth year 4 and after the fifth his value goes to 0 (contract expires)

It is a very important data to take in account when selling players because it decides the value with which you need to sell a player to be equal in the account books . For example if we sold the 20 mil player after a year for 16 mil , that would be a 0 difference , if we sold him for 20 that would be a plus of 4 mil , everything lower than 16 mil would be a minus . For more info ask Marotta , he is a master in these things :D
 

Red

-------
Moderator
Nov 26, 2006
47,024
Yeah, they are going with the 4.5m that was rumoured at the time of Llorente signing.

I thought that was quite an interesting one and I imagine Gazzetta have some basis for saying he's earning 1m less than was widely rumoured.
 

Vlad

In Allegri We Trust
May 23, 2011
24,064
Yeah, they are going with the 4.5m that was rumoured at the time of Llorente signing.

I thought that was quite an interesting one and I imagine Gazzetta have some basis for saying he's earning 1m less than was widely rumoured.
There are other examples like Chiellini but we'll see. Gazzeta and economical related issues don't go together. They can't ffs look at FR to confirm numbers they publish.
 

j0ker

Capo di tutti capi
Jan 5, 2006
22,892
Numbers that don't add up are renewals and they're bit more complicated. Buffon for example 55m fee in 2001, 5 years of contract till 2006= 11m per year amortization. Buffon signed new contract in 2004, so his value till that point was 55m-33m (amortization 3 years X 11m)=22m. Then you spread 22m over the duration of the next contract and so on...
Pratically if you buy a player for 20 mil and give him a 5 year contract , in theory with every passing year his value drops by 20/5=4 mil . So in the second year his value drops to 16 , third year 12 , foruth year 8 , fifth year 4 and after the fifth his value goes to 0 (contract expires)

It is a very important data to take in account when selling players because it decides the value with which you need to sell a player to be equal in the account books . For example if we sold the 20 mil player after a year for 16 mil , that would be a 0 difference , if we sold him for 20 that would be a plus of 4 mil , everything lower than 16 mil would be a minus .For more info ask Marotta , he is a master in these things :D
:tup:
 

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