K.2 Squad cost ratio denominator - Club Licensing

K.2.1

Definitions for the calculation of the squad cost ratio denominator are as follows:

K.2.2

Adjusted operating revenue is calculated as the sum of the following items as described in Annex J:

1. Revenue – Gate receipts

2. Revenue – Sponsorship and advertising

3. Revenue – Broadcasting rights

4. Revenue – Commercial activities (net of costs directly attributable to merchandise sales)

5. Revenue – UEFA solidarity and prize money

6. Revenue – Other operating income (net of costs directly attributable to non-football operations related to the club)

   The above revenues must be decreased if any of the elements listed in i) to vi) above include any of the items below:

7. Income transaction(s) above fair value as described in Annex J;

8. Income from non-football operations not related to the club as described in Annex J;

9. Exceptional income.

K.2.3

Net profit or loss on disposal of relevant persons’ registrations must be recognised as described in Annex G.

K.2.4

Other transfer income/expenses are calculated as the sum of the following items:

1. Costs of relevant persons in the relevant period which are not otherwise accounted for using the capitalisation and amortisation method of accounting in employee benefit expenses or in other costs of agents/intermediaries;

2. Loan costs comprising amounts incurred in respect of the temporary transfer-in of a player from another club or transfer-out of a player to another club plus any directly attributable amounts incurred towards another party such as another football club, agent/intermediary, or national football association/league;

3. Income accounted for in the relevant period from disposal of relevant persons’ registrations which is not otherwise accounted for using the capitalisation and amortisation method of accounting; and

4. Loan income comprising amounts recognised in respect of the temporary transfer-out of a player to another club or transfer-in of a player less any directly attributable amounts paid and/or payable for a commitment to another party such as another football club, agent/intermediary, or national football association/league.