VILLA A.M. 19th AUGUST

AI's WORKINGS AROUND AMORTISATION OF BAILEYS CONTRACT TO FIND HIS BOOK VALUE

Leon Bailey was signed by Aston Villa on August 4, 2021, for a transfer fee of £30 million on a contract expiring June 30, 2025. This represents an original contract period of 1,426 days. The transfer fee is amortized on a straight-line basis over this period under UEFA's financial regulations for player registrations. By the contract extension date of February 12, 2024, 922 days had passed, resulting in £19,397,400 of the fee being amortized (922 / 1,426 × £30,000,000). The remaining book value at extension was £10,602,600. The extension adjusted the contract expiry to June 30, 2027, creating a new amortization period of 1,234 days for the remaining book value. As of August 18, 2025, 553 days have passed since the extension, resulting in £4,751,140 amortized since then (553 / 1,234 × £10,602,600). The current remaining book value is therefore £5,851,460. To arrive at this solution: 1. Determine the original contract duration in days using date differences. 2. Calculate the fraction of the original period elapsed until extension and apply it to the fee to find amortized and remaining amounts. 3. Determine the new extended period in days from extension date. 4. Calculate the fraction of the new period elapsed until the current date and apply it to the remaining value from step 2 to find the current book value.

Learn more about your ad choices. Visit podcastchoices.com/adchoices