Football Accounting

Accounting reports on intangible assets have long been a problem, especially, those related to human capitals. They have become a problem whether they appear in balance sheet or not. These, human capitals have in fulfill asset definitions and recognition criteria. This paper highlights human capital reported in the United Kingdom football club's balance sheet. Ax we know the United Kingdom football industries have developed and yielded hundred billions pounds every year. They have also made football players become most important and most expensive in football clubs, with clubs paying regular large transfer fees in the transfer market to acquire players. FRS 10 Accounting /or intangible assets and goodwill, recommends capitalization as the most appropriate treatment for intangible assets. There are two main issues that will be analyzed in this paper, First, do football players fulfill the accounting criteria to be classified as assets of the football clubs? Second, if so how should they account for?

Football Accounting

In the "round" the Accounts of a football team have to be a bit like their defence "well-balanced" and that has to be the ultimate "goal." Some teams may wish to go for short term asset accounting - applying to players under 5'6" like Butt and Scholes.

Liverpool, for example, have to know how much is "Owen" and whether they should make a "Provision for Bad Dudeks" and as they all Excel as a team, all accounts are doen either in Basic or Heskey format. For further detaisl, please consult Jay Tanna

Players do not appear on the Balance Sheet

I suspect you really wanted to know if you could show the players on the Balance Sheet as assets.

As you probably suspect the answer is no.

The suggested route here is to insert a note into the Directors Report which includes an appraisal of the value of players on the transfer market.

Players are treated as stock in trade!

John,

I think the players are treated as stock in trade and valued at year end. Valuation takes account of the following:

1) how many eyes they have;

2) Have they got both legs;

3) Can they command respect on the pitch;

4) Can they read and write;

5) Are they marketable to media;

etc etc

Also, I have just found out that the reason players get paid more (say Owen gets £80,000 per week) is becasue any spornsorship money he gets belongs to the club!. I didn't know this. I was always in the opinion that private ads by a player is his own affairs.

Player are sold like slaves were sold in the 18th and 19th century or ships and cattle sold these days!.

It is a good idea to get hold of company accounts of ManU, or some similar club, to read their accounting policies.

We wait and see whether Henrik Larsson (Celtic) can score against the best of Liverpool defence tomorrow, Saturday 10/11/01.

Hope this helps.