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 operating revenues as described in Annex J:

1. Revenue – Gate receipts;

2. Revenue – Sponsorship and advertising;

3. Revenue – Broadcasting rights;

4. Revenue – Commercial activities;

5. Revenue – UEFA solidarity and prize money;

6. Revenue – Other operating income; and

7. Revenue – Non-football activities related to the club.

   The above revenues listed in (a) to (g) must be decreased by the items listed in (h) to (l) below as applicable:

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

9. Income from non-football activities not related to the club;

10. Exceptional income;

11. Costs directly attributable to merchandise sales, including costs of sales and rental costs; and

12. Costs directly attributable to non-football activities related to the club, including employee benefit expenses and amortisation costs.

K.2.3

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

K.2.4

Impairment of relevant persons’ registration costs is calculated from the licensee’s annual financial statements and/or interim financial statements as defined in Annex G.

K.2.5

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 for player registrations, in employee benefit expenses or in other costs of agents/intermediaries; and

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

K.2.6

Exceptional income is an income/credit item derived from an unusual and unpredictable event, or an event or transaction which does not occur frequently or regularly.