On the face of it, this might appear to have been an expensive summer for Man City; they have just sold Tevez at a £35m loss and have recently spent £50m on Fernandinho and Navaz. Football fans might follow the narrative that says that Man City are 'laughing in the face of FFP'. However, owing to the way football finances operate, the reality is somewhat different.
When judging whether a team has made a profit or loss for the season, transfers fees are spread out over the duration of the contract. So Tevez, signed for around £45m on a 5-year deal in 2009 (4 years ago), would be accounted for as an expense of £9m a season (£45m ÷ 5 = £9m) each season until now. Consequently, the transfer of Tevez actually 'saves' City £9m this coming season as they don't incur a further £9m depreciation cost (termed amortisation).
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