TAC_MatrlX

@israel_ajoje Well done on explaining man. Was actually wondering about this before.

So rumours have it that United need to sell Onana for 18.9m to profit from his purchase. A lot of people think it’s a reporting error. But I tell you truly and surely that it in fact is not. It is actually accounting efficiency. Stay with me. Under IAS 38, the International Accounting Standard governing intangible assets, transfer fees are not expensed in full in the year a club pays them. They are capitalised on the balance sheet and amortised, meaning spread evenly, across the full duration of the player's contract. This is the accounting treatment that applies to all intangible assets with a finite useful life. A footballer's contract has a defined end date. Therefore the fee paid to acquire that contract is written down gradually until it reaches zero at expiry- very similar to the system used for depreciation. Are you with me? Now, Onana joined Manchester United in July 2023 on a five year contract for £43.8 million. Under IAS 38, that fee is “amortised” at £8.76 million per year across five years. By the summer of 2026, three years into that contract, United will have already expensed £26.28 million through their profit and loss account. The remaining book value of Onana on United's balance sheet at that point is approximately £17.52 million. If United now sell him for £18.9 million, they are selling an asset currently sitting on their books at roughly £17.52 million for £18.9 million. The difference between the book value and the sale price is the accounting profit. In this case approximately £1.38 million. Not £18.9 million in profit. Not a £25 million loss. A small but real accounting gain. This is why clubs talk about profit on player sales as a separate line from the original transfer fee. The fee you paid years ago has already been absorbed into previous financial years through amortisation.  It is also why sometimes, clubs sell homegrown players for “pure profit”. Homegrown players have a book value of 0 as their cost of purchase is 0 and every amount raked in from their sale is pure profit cos there is nothing to deduct from it.  What matters at the point of sale is what the player is currently worth on your books versus what someone is willing to pay for him today. Football finance is not intuitive. But once you understand amortisation, the numbers start making a different kind of sense. I hope you learned something today. My name is Ajoje. I am a FIFA Licensed Agent and International Sports Lawyer. I write on the Law and Business of Football, a lot. Repost and Follow if you want to read more posts like this.

@TheloneWolfttv Can we confirm their platform though?

@TAC_MatrlX They messaged me saying how can we cheat on ps5

Level 1 frenchies getting nukes !

@HulkmanZA @therealgeemax 😊😄😄

@therealgeemax I was like 6 years old here george

@TheloneWolfttv Wow🥰

Boom !

So close to 10k

So close to 10k and 2k followers! Help the Wolf out here peeps 🙏🏻❤️

@TheloneWolfttv The lobbies are filthy lately

Blatant cheater !

@TheloneWolfttv @CODZAIntel @dowesportsza 😏🔥 That swarm looks… Tasty

MERRY XMAS ! new video out ! @CODZAIntel #CODZAgrind #warzone3 @dowesportsza

@TheloneWolfttv @lucatucconi @dowesportsza @CODZAIntel You are either cracked in the sticks, or on crack😏😄🔥

Some clips from yesterday ! @lucatucconi @dowesportsza @CODZAIntel @TAC_MatrlX #CODZAgrind #MW3

@PookiesParadise @Werries35846036

bro has parental controls on 😭

@PookiesParadise @moizt977 @TheloneWolfttv

@TheloneWolfttv @CODZAIntel @moizt977 Love it😄😄

@TAC_MatrlX @CODZAIntel @moizt977 like the edit ?

@TAC_MatrlX So much fun playing with the boys again ,here's our crazy W ! GG @CODZAIntel #Warzone

@TheloneWolfttv @CODZAIntel Looking good🔥🙌🏼

Really enjoying sniping in MW3 - little clip i did ! loadout at the end ! @CODZAIntel #CODZAgrind @TAC_MatrlX

@dricusduplessis Hulle weet nie wat ons weet nie🔥🇿🇦

Now I understand why you have a 33% finish rate, you hit like a girl, also 20 January the security won’t be there to save your life when I’m on top. 🤣🤣🤣 #rentfree

@centrdevils Absolute bull-crap! These players are wayyyy to privileged. The standard is 3 days “Family-Responsibility”-leave… Play football, earn 100k a week and decide to take off the season.😳

@CFCMod_ As a Man United fan, this midfield slaps hard🥹

@TAC_MatrlX Cricket looking different

How’s your team looking for the first game week of the new season?

@qatarairways @VisitQatar Please buy Man United😄😄

Are you ready for a Burgundy Adventure? Where Qatari heritage meets contemporary architecture. All the best stories begin with a boarding pass. Watch now on YouTube: youtu.be/6J7sXw48jB4 @VisitQatar #QatarAirways #BeautifulDestinations