UEFA to crackdown on fictitious capital gains after Manchester City case


After UEFA came down hard on Manchester City last week for inflating the values of their club sponsorships, La Gazzetta dello Sport reports that the governing body will soon begin to crackdown on fictitious capital gains that are not in-line with market values.

The term “plusvalenza” is a popular term during the transfer window: it represents the total capital gain a club earns from the sale of a player (purchase price less residual cost).

In recent years, though, the use of capital gains has become a pathological phenomenon, which is why the UEFA Club Licensing Committee, a committee chaired by Vice President Michele Uva, has already started to study the capital gains system and will soon evaluate a number of corrective mechanisms that will be launched in the Fall.

In the financial year 2018-19, the Giallorossi recorded €130 million in capital gains after the sales of Alisson, Kostas Manolas, Luca Pellegrini and Kevin Strootman.

 

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