Controversies about the accounting treatment of transfer fee in the football industry

Pavlović, Vladan and Milačić, Srećko and Ljumović, Isidora (2014) Controversies about the accounting treatment of transfer fee in the football industry. Management, 19 (70). pp. 17-24. ISSN 1820-0222

Text e_management_70_english_02.pdf - Published Version Restricted to Repository staff only Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (881kB) | Request a copy

Abstract

Investments in sportsmen traditionally were considered as costs, together with transfer fees. From the second half of the twentieth century transfer fees are considered as assets. However, in the late twentieth and early twenty-first centuries the opinion prevailed that requirements for capitalization are met, and that capitalization and disclosure as intangibles are an obligatory procedure in almost all countries with a developed accounting tradition. There is the question of justification of the above procedure, having in mind that the contribution of the contracted fee for transfers cannot be determined related to the financial benefit of clubs, that players are often alienated before the end of the contract, and that the requirements for the control cannot be fully met.

Actions (login required)

View Item