Ferran Torres or Ansu Fati could be up for sale, or maybe both, according to FC Barcelona, although there may be a secret reason why Fati rather than Torres might be on his way out. Financial Fair Play rules, that regulate who Barcelona may and cannot register, are involved.
“Amortisation”- the driving factor behind this decision
Let’s first define the term “amortisation.” This is a form of accounting where the price of buying an asset is deducted over time. In terms of football, it means that the expense of purchasing a player’s contract is deducted over the course of the contract that the player signs. That implies you may deduct it as costing 10 million euros per year if you sign a player for 50 million euros and he signs a five-year contract. This is not the same as paying a fee to the selling club in installments, and it is important to distinguish it from reports about the amount paid to Manchester City at specific points in time to acquire Torres. It’s a different problem.
Barcelona will incur a loss by selling Ferran Torres right now
His transfer is going to amount to about 55 million overall. His contract was for 5.5 years. Although the actual numbers are more complex, this works well when keeping things simple. Therefore, for the following few years, his value is amortised as 10 million per season. There are still 40 million to amortise over the following four years after 1.5 years have passed. Accordingly, should he be sold for less than 40 million, the team would incur a loss in FFP. Since his remaining value is 40 million, for instance, selling him for 25 million would result in a 15 million loss on the financial records.
There is money to be saved on salaries there. Of course, if his market worth continues to decline and they are unable to demand a higher price, selling now might be better for the team’s finances than waiting. However, a prospective sale would not provide Barça with the FFP room they desire.
Selling Fati might ease FFP issues
Fati is another option. There is no amortisation required for the transfer cost because Fati is an academy player. Selling him would therefore be a considerably more effective approach to create FFP space. Any price Barcelona ended up selling him would generate revenue for the team’s books, which would improve their FFP status.
Of course, there are more forces at work here. One important factor is whether or not each player has interested buyers and what they will be willing to pay. The players’ willingness to join the clubs that provide offers is another factor. However the FFP issue is the one unnoticed factor that has made a major impact.
Follow our Twitter handle for more update.