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Kc Zephyr

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Submitted By jshel12
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1- Roster Depreciation – The OPC is currently depreciating 50% of the purchase price over the period of six years, where the PBPA feels that the depreciation expense should be recognized at the time of the team being sold. So who’s right? I feel that the OPC is right not because they are following industry standard but because over time the player’s performance will decrease and they become more prone to getting injured depreciating the overall team value. Therefore, the PBPA should continue to depreciate the roster as they currently are.

2- Current Roster Salary - The OPC is currently expensing 100% of the players yearly salary including the portion of their salary of which is being spread out over the following 10 years, where the OPC feels that they should only expense the yearly amount of which is being paid out excluding the one that’s being spread out over the next ten years. So who’s right? I feel that the OPC is right since the salary portion that is being spread out in ten years it has actually being earned now and not in the next ten years. It has been deferred for ten years in order to aid in taxes purposes and to secure income in the following years but it has already been earned.

3- Amortization of Signing bonuses – The OPC is currently expensing the player’s signing bonuses in the year that they are paid, where the PBPA feels that the signing bonuses is part of the overall compensation package and therefore should be amortized over the period of the players contract. So who’s right? I feel that the PBPA is right, since indeed, the signing bonus is tied to the overall compensation package and therefore should be capitalized and amortized over the period of the contract period and not expensed the year it was paid in full.

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