Human Capital valuation and Accounting: A focus on football players
Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
SUMMARY Research has been undertaken on football players’ valuation and accounting. The purpose of the study was to find out the answers to the questions of how football players are valued and how the values are reported in the club financial statement. The research leaves both the questions answered. The qualitative analysis is made on the basis of in-depth understanding of this area and it has been found out that it is mainly the historical cost method that is applied in the valuation of an acquired football player. The transfer price paid to acquire a player is translated into the value of a player. This value then accounted for on the balance sheet as an immaterial asset. This value is written off constantly with the same amount under the duration of the contract. In case a player is sold, the amount outstanding in his contract is written off at once. That sales amount is added on the revenue of the club. Those players that are developed within the club are not valued as assets of the club. Instead they are taken as club expenditures by expensing all the costs incurred on them as periodical costs. The general conclusion that emerges from the literature, earlier studies, published club annual/financial reports and interviews is that the method applied in valuation of players is the historical method. Second, although the acquisition cost is taken as an asset in the beginning but eventually both acquisition and period costs are classified as expenses through depreciation and periodical costs. The major difference is the point of time at which they are so classified.
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IdentifiersURN: urn:nbn:se:su:diva-6148OAI: oai:DiVA.org:su-6148DiVA: diva2:196095