The buy out clause for Valencia in Kondogbia’s contract could be a nice gain for Inter, despite the price of €25 million being less than the €32,5 million Inter paid Monaco to bring him to the San Siro in the summer of 2015.
Calcioefinanza.it reports: “this is because during his first year Kondogbia cost Inter €13,494,000 in cost of income statement: €6,494,800 in depreciation (allocation of a cost incurred for the acquisition of an asset whose duration is multi-annual) & €7,ooo,ooo on gross paid wages (estimated considering taxation of 50%). The historical cost, & there is also another further element, by the depreciation accrued during the year, would have theoretically produced a residual charge (sum to be depreciated) at the beginning of the 2016-17 season of €25,979,200. Then during the 2015-16 season, the conditions (bonuses in favour of Monaco) occurred so that the final price of Kondogbia in the FC Internazionale Group’s budget is €40,501,450. For this reason the remaining cargo value of the Frenchman for the 2016-17 season is €34,006,650. By projecting the depreciation of this share over the duration of the 4 year contract, the financial impact of this increased substantially from €6,500,000 to €8,501,662 (+30%).
Considering the increase in depreciation as a result of the bonus conditions, the value of Geoffrey Kondogbia in the balance sheet of June 2017 should have been around €25,500,000. A figure that will fall to around €17,000,000 by the end of the 2017-18 season. Therefore if Valencia were to exercise their right to purchase, Inter would centre a gain of around €8,000,000.”
Source: FCInterNews.it
