Summer Mercato Thread 2019-20 (22 Viewers)
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I collect that info from reading some finance reporter, and it makes sense to me seeing how Juve do some sales quickly before 1.7 and high in number. Below are an article by Marco De Santis, a vey reliable source on Juve finances. We'll see when Juve release a finance report for 2018/2019 years in October.
Fair enough. With Allegri replacing Sarri we certainly won't reach a CL final anytime soon so no need to worry about the last time we reached one and Dani Alves started a half time during it.
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Its a real shame (and blessing for @DanielSz) that the Pep thread was closed and I can't make a massive multiquote of his posts in there sharing (even threatening Pep to juve doubters better delete their posts so they aren't brought up at a later time
) his worthwhile opinions
Seriously, pull up his post history and go back from 5 pages. Its hilarious.
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Its a real shame (and blessing for @DanielSz) that the Pep thread was closed and I can't make a massive multiquote of his posts in there sharing (even threatening Pep to juve doubters better delete their posts so they aren't brought up at a later time
) his worthwhile opinionsSeriously, pull up his post history and go back from 5 pages. Its hilarious.
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So I tried to dig on this. Without a doubt if a player is already on loan and an option is triggered it can be recognized during that period. An example is Rincón in January - so Audero and Orsolini for sure can be recognized in ‘18/19 FY.
I’m less certain on Spinazzola. There is no historical example I could find where the player was still with Juventus and sold before the window opened. But I think it is possible to book it before the window opens. There are a few reasons for this. 1) the news release in included under that fiscal year. 2) in the financial statement it says “the capital gain is recorded at the moment all risk and benefit associated with the right is transferred”. Well at first I read and thought well clearly once the the player is officially able to join the club. But thinking twice - if the deal is finalized - all the risk and benefit of the right has been transferred. Spinazzola is going to Roma and Juventus is getting paid a specific amount. If he gets hurt the following day, nobody can back out. So it’s right to recognize the gain in that period - I think. But we will see when the annual report is released...and whether it’s included in the 18/19 year or included in the part about “events after the end of the period”
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I’m less certain on Spinazzola. There is no historical example I could find where the player was still with Juventus and sold before the window opened. But I think it is possible to book it before the window opens. There are a few reasons for this. 1) the news release in included under that fiscal year. 2) in the financial statement it says “the capital gain is recorded at the moment all risk and benefit associated with the right is transferred”. Well at first I read and thought well clearly once the the player is officially able to join the club. But thinking twice - if the deal is finalized - all the risk and benefit of the right has been transferred. Spinazzola is going to Roma and Juventus is getting paid a specific amount. If he gets hurt the following day, nobody can back out. So it’s right to recognize the gain in that period - I think. But we will see when the annual report is released...and whether it’s included in the 18/19 year or included in the part about “events after the end of the period”
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Your 1st example is correct, as the player license is already registered with the club, so it is possible, but loaned with an option is the only case. If its an obligation, then the club has to activate the asset from the beginning.
I was refering to the normal case a player bought in June vs. player bought in July and u cannot simple decide which year to book it. That is not how accounting works.
I was refering to the normal case a player bought in June vs. player bought in July and u cannot simple decide which year to book it. That is not how accounting works.
As I said: reading the financial statements (and I do it for a living...not a CPA, but an investment analyst), the interpretation of how you book the capital gain depends on when “the risk and benefit” is transferred. So if Roma and Juventus completed the transfer on June 30th, and the agreement has been finalized, you could interpret that risk has been transferred and the benefit received. The FIFA transfer rules are just to register the contracts with the footballing body - that doesn't indicate to me that the "right to register" can't be bought or sold before that. That doesn’t mean the agreement isn’t effective nor that the benefit/ risk hasn’t been transferred. As of 6/30/2019 Roma and Juventus had an official agreement that used the term "definitive disposal of registration right".
If Spinazzola got injured in hours following the agreement, it would be Roma’s problem because the agreement was final, and Roma owns the registration right. That in itself is an argument to book the gain in period ending 6/30/2019 because risk has been transferred. Keep in mind the press release from the agreement was issued on 7/1/2019 but was included 18/19 fiscal year section of the website, and the FY ends on 6/30/2019. That indicates to me that the Spinazzola sale will be recorded in the 18/19 FY.
I would expect consistent with this that:
- Spinazzola's gain would be booked in the '18/19 FY
- Whatever capital expenditure associated with the registration rights of Pellegrini would be booked in that same period.
- Depreciation would then be recognized over the life of his 4 year contract.
Could I be wrong? Yes. But reading Juventus’ annual report indicates that it will likely be recorded as a 18/19 gain rather than 19/20. We will find out in the coming months when the annual financial statements are reported.
But one thing is for sure. They couldn’t book a transfer made in July in June. Romero’s transfer is included in the 19/20 section. But the Spinazzola agreement was booked on 6/30/2019.
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If Spinazzola got injured in hours following the agreement, it would be Roma’s problem because the agreement was final, and Roma owns the registration right. That in itself is an argument to book the gain in period ending 6/30/2019 because risk has been transferred. Keep in mind the press release from the agreement was issued on 7/1/2019 but was included 18/19 fiscal year section of the website, and the FY ends on 6/30/2019. That indicates to me that the Spinazzola sale will be recorded in the 18/19 FY.
I would expect consistent with this that:
- Spinazzola's gain would be booked in the '18/19 FY
- Whatever capital expenditure associated with the registration rights of Pellegrini would be booked in that same period.
- Depreciation would then be recognized over the life of his 4 year contract.
Could I be wrong? Yes. But reading Juventus’ annual report indicates that it will likely be recorded as a 18/19 gain rather than 19/20. We will find out in the coming months when the annual financial statements are reported.
But one thing is for sure. They couldn’t book a transfer made in July in June. Romero’s transfer is included in the 19/20 section. But the Spinazzola agreement was booked on 6/30/2019.
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