What Are Capital Gains & How Do They Affect Inter Milan?

What Are Capital Gains & How Do They Affect Inter Milan?
January 3, 2022 12:04
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In a statement released December 21 through their official site, Inter Milan assures the fans and the public that they are cooperating with investigations related to the capital gains issue.

While the situation is getting widespread attention, not everyone understands what capital gains are and their effect on football clubs like Inter.

This article will look at the definition of capital gains, or “plusvalenze” in Italian, as well as its implications on the sport. We will also check if the issue could influence activities on Finnish online casinos, more commonly known as “suomalaisia nettikasinoita” in Suomi.

Understanding Capital Gains

In a nutshell, capital gains refer to the increase in value of a particular asset. Generally associated with investments like stocks or bonds, the gains are computed once the asset is sold.

Additionally, homes, vehicles, and other assets bought at a higher price than their actual purchase rate also incur capital gains.

Why Are Capital Gains Important in Football?

In football, capital gains show up when players’ contracts are purchased from one team to another. For example, when team A buys a five-year contract for a certain player at the cost of 2000 euros, it’s counted as an expense in the books for that year.

Each year during the contract period, the expense goes down based on the annual amount. For this sample, the initial expense of 2000 depreciates by 400 per year until the contract ends.

Now, let’s say team A sells the contract to team B for 3000 euros during the second year of the contract. The capital gain will reflect once the book value (in this case, 1600) is deducted from the purchase price (3000). In this example, the capital gain will be 1400 euros, which will be added to the team’s income statement for the year.

While capital gains are not a monetary source of income for the teams, it does help the team’s standing in computing their annual budget.

A team’s yearly budget influences their chances of getting national or international licenses, along with it being a crucial part of financial fair play.

Ideally, teams must have balanced books to help evaluate players. The concern with capital gains in football is that there are limited regulations and that organizations could inflate the amounts artificially to make their books look better. And when not properly balanced, players may get a higher or lower valuation than what they deserve.

Plusvalenze In European Football

Italy’s Guardia di Finanza started cracking down on various teams and checking their books to ensure fairness and proper transactions amongst European football teams.

A police force under the country’s Minister of Economy and Finance, the department suggested that Inter’s financial statements could show some irregularities.

This prompted a preliminary investigation concerning Inter which followed the full investigation regarding Juventus, with the financial police searching Inter’s headquarters on December 20.

The club clarified that they worked with the authorities during the visit in their post. They also announced that no employees are under investigation and that no formal charges are filed against individuals or the club.

Impact On Online Casinos

The capital gains issue that Inter Milan is facing would have little impact on sports betting, one of the gambling activities done on online casinos.

The possible effect could be reduced support for the team, which would influence betting decisions and better odds on their games.

Whether you’re a fan of Inter or a casual onlooker, the capital gains situation they’re facing is not something to take lightly.

Padding the books to look better has an unseen yet strong effect on the sport, as it determines the player’s value and budget allotments per team.

By Editorial Staff

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