PracticeAccounting FirmsChelsea’s cut-price fee for Duff justified by accounting

Chelsea's cut-price fee for Duff justified by accounting

Chelsea's sale of Damien Duff to Newcastle for a cut-price £5m justified by accounting

Newcastle United’s purchase of Damien Duff for £12m less than what Chelsea
paid for the Ireland international in 2003 has been explained by accounting.

Duff only had a year to run on his contract with Chelsea, and because
football clubs amortise the amounts paid for players over the length of the
contracts, Duff’s book value was £4.25m before the Newcastle deal.

According to The Guardian, Tottenham Hotspur had originally offered
Chelsea Duff’s book value before Newcastle swooped for the 27-year-old
midfielder with a £5m bid.

It is unusual, however, for clubs to sell a top player in his prime at
reduced price, irrespective of how much longer a player’s contract still has to
run.

Read more of football player accounting here

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