The impairment of intangible assets in sport industry: The case of multiannual rights to esploit the performance of professional footballers

This paper critically discusses the valuation and the application of the impairment test of intangible assets of football teams. Specifically, this study looks at players’ registrations, which are recorded as a specific item among the intangibles of the balance sheet of professional football enterprises. Therefore, the players’ registrations represent the main item of football teams balance sheets. As such, this paper critically analyses the application of the rules defined by IAS/IFRS, with the objective to find a correct treatment of enrolment and valuation of players’ registrations in financial statements. This study follows an empirical approach by taking into account professional football teams listed in the “ the STOXX Europe Football Index” (this index includes twenty-four teams from different member states of the European Union and is as such considered to be representative of the European football industry) and Professional football clubs participating in the 2009/2010 Italian championships. This work extends the literature on the treatment of players’ registrations in financial statements and provides accountants with detailed information on the application and interpretation of accounting standards for a correct recognition and valuation of players’ registrations.