FootyChatter.com

Selling players who have graduated from the academy can be a financial goldmine for football clubs. The basis for that benefit is an accountancy practice called amortisation, which involves a business spreading the cost of an asset over an extended period. Using amortisation to spread costs is a method football clubs use to abide by financial fair play rules for continental competitions and domestic leagues, including the Premier League's Profit and Sustainability (PSR) regulations. In the accounts of clubs, players count as assets. Each player has an amortised value. It has become common practice in football for clubs to amortise (spread) the transfer fee they pay for any new signing. For example, if a new player is signed for £80m on a four-year contract, amortisation means that fee is listed as £20m per year for four years in the club accounts. Spreading expenses over a longer period of time using amortisation is a way for clubs to create more space in their accounts. That could then allow them to spend more money on new players in a single window, because as far the financial records show, the full cost of the transfer fees they agree to pay isn't counted until far further down the line. In contrast to the spreading out of player purchases, sales of players are typically counted in full in one year's accounts. Every player on a club's books has their amortised value decrease each year. Let's take our £80m player signed on a four-year contract from earlier as an example. After two years, the player's amortised value in his club's accounts is £40m. That summer, he is sold for £50m. Despite that figure being £30m less than the fee his club originally paid for him two years ago, in the club's financial accounts this reads as a £10m profit, because it is higher than his amortised value of £40m. Youth players automatically have very low amortised values, because little no transfer fee was paid for them in the first place. Whatever price they are then sold for can be counted as almost 'pure profit' in the accounts. So as far as the accounts go, Chelsea's sale of Conor Gallagher to Atletico Madrid last summer for £33m was more far more valuable to them than the departure of Romelu Lukaku to Napoli for £30m, because the former came through the academy while the latter was signed for a very high transfer fee. With Chelsea having spent many hundreds of millions of pounds on new players signing long contracts in recent transfer windows, amortisation means high-value sales of academy graduates such as Gallagher, Mason Mount, Lewis Hall and Ian Maatsen have helped them abide by football's financial rules. Kobbie Mainoo has been linked with a shock move from Manchester United Recent reports indicate Manchester United could be willing to sell midfielder Kobbie Mainoo, and that Chelsea would be in pole position to sign him in the event a transfer materialised. United, having spent about £200m on new players last summer before also paying significant compensation to sack Erik ten Hag and hire Ruben Amorim, are in a tough financial position. As things stand, the club need to sell players before they buy any, in order to abide by PSR rules. That could make the sale of 19-year-old Mainoo, who joined the club's academy aged seven, very valuable to United and something their hierarchy considers more seriously. Since falling out of favour with new boss Amorim, United forward Marcus Rashford has also been strongly linked with a transfer. If Rashford is sold, his transfer fee would also represented 'pure profit' in the club's accounts. What is a low block in football, and how does it work? What happens during a transfer window? And are there any rules? Why are there so many international breaks? EFL Cup semi-final: Build-up to Tottenham v Liverpool West Ham sack Lopetegui and hold talks with Potter UK Athletics charged with manslaughter over death of Paralympian Paddy’s loaf-changing experience inside the bread factory Paddy Mc Guinness visits the factory he used to work in to find out how they bake 1. 4 million loaves a week Dara Ó Briain and Isy Suttie discover strange-but-true tales The pair are joined by astronaut Helen Sharman to learn about how humans learned to survive in space A round-up of 2024's top sports stories. Video A round-up of 2024's top sports stories Jason Manford hosts, with Maisie Adam and Jon Richardson as team captains How Claressa Shields became a boxing legend The story of how Claressa Shields overcame obstacles to reach the top of the boxing game Fantasy holes with lava fields - it's golf for the 21st Century How the man who signed Henry, Bale and Suarez is reshaping Toulouse How the role of a goalkeeper changed Can Djokovic win record 25th Grand Slam aged 37? As Hamilton turns 40, how well do you know seven-time champion? 'Epic moment! ' - 355lb Pierce interception tops NFL best plays. Video'Epic moment! ' - 355lb Pierce interception tops NFL best plays The Man Utd legend almost broken by Barcelona Kohli, youngsters & Bumrah - talking points from Australia's win over India Clough - the man who made Forest European champions twice How 'impressive' Man Utd caused problems on Liverpool's right side. Video How 'impressive' Man Utd caused problems on Liverpool's right side Australia beat India to claim series victory. Video Australia beat India to claim series victory Teenage kicks - what makes history-making Littler so good? Sporting highlights to look forward to in 2025 The best sports photos of 2024 - and how they were captured © 2025 BBC. The BBC is not responsible for the content of external sites. Read about our approach to external linking.