CAPÍTULO II.PLANES DE PENSIONES DEL SISTEMA DE EMPLEO SECCIÓN PRIMERA.Ámbito
Artículo 27. Promoción de un plan de pensiones de empleo
During the financial years ended 30 June 2014 and 2013, the movement in ‘Players’ registrations’ as well as depreciation and accumulated impairment losses, was as follows:
Industrial
property Others Total
Gross cost
Opening balance (30.06.2012) 2,344,848 226,632 2,571,480
Additions - 800 800
Closing balance (30.06.2013) 2,344,848 227,432 2,572,280
Accumulated depreciation and impairment losses
Opening balance (30.06.2012) 647,287 81,851 729,138
Depreciation 21,316 73,273 94,589
Closing balance (30.06.2013) 668,603 155,124 823,727
Carrying amount 1,676,245 72,308 1,748,553
Other intangible assets 30.06.2013 Intangible assets - 'Players' registrations 30.06.2014 30.06.2013 Gross cost: Opening balance 120,789,429 156,767,366 Acquisitions 18,789,708 46,509,554 Sales (20,827,879) (71,235,609) Transfers (Note 9) (8,599) (2,883,182) Write-offs (Note 27) (1,044,143) (8,368,700) Closing balance 117,698,516 120,789,429 Accumulated depreciation and impairment losses:
Opening balance 44,630,531 57,512,037
Depreciation (Note 27) 26,379,179 26,225,716
Impairment losses (Note 27) 563,333 300,842
Utilization of impairment losses - (3,988,349)
Sales (14,524,217) (28,090,273)
Transfers (Note 9) - (1,596,314)
Write-offsWrite-offs (Note 27) (855,951) (5,733,128)
Closing balance 56,192,875 44,630,531
Consolidated Accounts Report 2013/2014
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Acquisitions
The main acquisitions made in the year ended 30 June 2014, in amount, can be resumed as follow:
The caption “Additional expenses” refers to expenses related to the purchase of players’ registrations, namely charges for intermediation services, legal services, signing-on fees paid directly to the players, etc.
It should be noted that in situations where the registration is less than 100%, although the Company is entitled to full use of the player’s registration, it has entered into an associated financial interests contract with a third party, which consists of an investment partnership in the registration rights, resulting in the proportional sharing of the inherent results in a future transaction of these rights, if it happens.
The main acquisitions made in the year ended 30 June 2013, in amount, can be resumed as follow:
The charges for intermediation services related with the purchase of players’ registrations in the years ended 30 June 2014 and 2013 referred above, as well as with the negotiation and renegotiation of labour contracts with players, amounted to 4,829,328 Euro and 2,539,120 Euro, respectively.
In the financial year ended 30 June 2014 these services were provided by Pearl Design Holding Limited, Edenresults, Danubio GmbH, DNN Lda., Idolasis, Soc. Unipessoal, Lda., Onsoccer, Gestão de Carreiras Desportivas S.A., Foot Expande, Lda. RAMP Managment Group International, DL Soccer Service SAS, Unifoot – Gestão e Eventos de Carreiras de Profissionais Desportivas, SA,
Player Economic rights percentage Acquisition date Vendor Contract end date Acquisition cost Additional expenses Total acquisition cost Quintero 50% Jul-13 Delfino Pescara 1936 SRL Jun-17 5,000,000 800,000 5,800,000
Ghilas 50% Jul-13 Moreirense Jun-17 3,800,000 - 3,800,000
Kayembe 85% Jun-14 Danubio GmbH Jun-19 2,615,000 61,587 2,676,587
Igor Lichnovski 100% Jun-14 Universidade do Chile Jun-18 1,837,000 100,000 1,937,000
Others 5,050,444 19,264,031 Discounting effects to NPV (474,323) Carrying amount 18,789,708 Player Economic rights percentage Acquisitio n date Vendor Contract end date Acquisition cost Signatue bonuses Additional expenses Total acquisition cost
Jackson Martinez 100% Jul-12 Club Jaguares de Chapas Jun-16 8.887.453 - 750.000 9.637.453
Diego Reyes 95% Dez-12 Club de Futbol América Jun-18 7.000.000 517.320 2.092.320 9.092.320
Herrera 80% Mai-13 Pachuca Club de Fútbol Jun-17 8.000.000 700.000 1.000.000 9.000.000
James Rodriguez 35% Jan-13 Gol Football Luxembourg Jun-16 8.750.000 - 8.750.000
Hector Quiñones 100% Ago-12 Asociación Deportivo Cali Jun-16 1.982.396 - 99.120 2.081.516
Ricardo Pereira 80% Abr-13 Vitória Sport Clube Jun-18 1.600.000 100.000 1.700.000
Licá 60% Mai-13 Estoril Praia Jun-17 1.500.000 150.000 1.650.000
Mauro Caballero 100% Jan-13 MHD, S.A. Jun-18 1.531.863 - 1.531.863
Others - - - 5.274.516
48.717.668 Discounting effects to NPV (2.208.114)
Consolidated Accounts Report 2013/2014
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Asesorias e Inversiones Aim Futbol Limitada, C.B. Nafricatalentsport, Lda., SportConsult and Pacheco & Teixeira, Lda and by the agent Ricardo Calleri.
In the financial year ended 30 June 2013 these services were provided by Northfields Sports BV, Grupo Comercializador Conclave S.A., Gondry Financial Services, Foot2Foot - Gestão de Carreiras Desportivas, Lda., Promosport, JOD Gestão de Carreiras Desportivas, Lda., Proeleven - Gestão Desportiva Lda., Energy Soccer Lda., Magnitude Partnership e by the agent Giancarlo Uda. The amounts of players registrations’ purchases in the years ended as of June 30, 2014 and 2013, consider the effect of discounting future payments to its present value, where applicable, in the amounts of, approximately, 798,204 Euro and 2,208,000 Euro, respectively. These amounts refer to the long term account payables balances related with the acquisition of the registrations of players, namely Ghilas, Quintero, Kayembe, Opare and Igor Lichnovski (as of June 30, 2014) and Jackson Martinez, Diego Reyes, Herrera, Hector Quinones and James Rodriguez (as of June 30, 2013).
Sales
Sales made during the financial year ended 30 June 2014 generated capital gains of 22,397,504 Euro (Note 27) which result mainly from:
a) sale of the registration rights of Atsu to Chelsea, by the amount of 3,000,000 Euro, generating capital gains of 1,991,667 Euro after the deduction of (i) the effect of discounting future medium term receipts and payments to its present value arising from these transactions; (ii) the proportional sale value of the registration player’s owned by third parties (25%); (iii) intermediation service costs provided by Energy Soccer and (iv) the carrying amount of the player’s registration on the date of sale, in the global amount of 1,008,333 Euro;
b) sale of the registration rights of Otamendi to Valencia, by the amount of 12,000,000 Euro, generating capital gains of 7,980,195 Euro, after deduction of: (i) the effect of discounting future medium term receipts and payments to its present value arising from these transactions; (ii) the proportional sale value of the registration player’s owned by third parties; (iii) intermediation service costs provided by Vela Management Limited; and (iv) the carrying amount of the player’s registration on the date of sale in the global amount of 4,026,000 Euro. Additionally this agreement foresees the payment of a variable remuneration, payable upon the achievement of certain sport objectives by the athlete, so the global amount receivable could rise up to 15,000,000 Euro;
c) sale of the registration rights of André Castro to Kasimpasa, by the amount of 2,058,000 Euro, generating capital gains of, approximately, 1,654,000 Euro, net of: (i) the effect of discounting future medium term receipts and payments to its present value arising from these transactions; (ii) intermediation service costs provided by Pacheco & Teixeira, Ltd.; (iii) the proportional sale value of the registration player’s owned by third parties (5%); (iv) liabilities relating to the ‘solidarity mechanism’, and (v) the carrying amount of the player’s registration on the date of sale in the global amount of approximately 404,000 Euro;
d) sale of the registration rights of Fernando to Hellas Manchester City, by the amount of 15,000,000 Euro, generating capital gains of, approximately, 5,298,000 Euro, net of: (i) the effect of discounting future medium term receipts and payments to its present value arising
Consolidated Accounts Report 2013/2014
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from these transactions; (ii) intermediation service costs provided by Onsoccer Internacional Career Gestão de Carreiras, SA; (iii) the proportional sale value of the registration player’s owned by third parties (20%); (iv) amounts payable to the player as indemnity; and (v) the carrying amount of the player’s registration on the date of sale in the global amount of approximately 9,702,000 Euro;
e) sale of the registration rights of Iturbe to Hellas Verona Football Club, by the amount of 15,000,000 Euro, generating capital gains of, approximately, 4,736,000 Euro, net of: (i) intermediation service costs provided by IG Teams & Players, SA; (ii) the proportional sale value of the registration player’s owned by third parties (55%); and (iii) the carrying amount of the player’s registration on the date of sale in the global amount of approximately 10,264,000 Euro;
The disposals in the year ended June 30, 2013, which generated capital gains in the amount of 74,016,304 Euro (Note 27), resulted mainly from:
a) sale of the registration rights of James Rodriguez to AS Monaco, by the amount of 45,000,000 Euro, generating capital gains of, approximately, 25,757,000 Euro, net of: (i) intermediation service costs provided by the entity Gestifute; (ii) the proportional sale value of the registration player’s owned by Orel (10%) ; (iii) liabilities relating to the ‘solidarity mechanism’; (iv) the carrying amount of the player’s registration on the date of sale, in the global amount of, approximately, 19,243,000 Euro.
b) sale of the registration rights of Hulk to Zenit St. Petersbourg, by the amount of 40.000.000 Euro, generating capital gains of, approximately, 23.871.000 Euro, net of: (i) the effect of discounting future medium term receipts and payments to its present value arising from these transactions (ii) the carrying amount of the player’s registration on the date of sale and (iii) the annulment of loyalty bonuses in the global amount of, approximately, 16,129,000 Euro;
c) sale of the registration rights of João Moutinhho to AS Monaco, by the amount of 25,000,000 Euro, generating capital gains of, approximately, 15,071,000 Euro, net of: (i) intermediation service costs provided by the entity Gestifute; (ii) the right to receive 25% of the capital gains by a higher value of 11,000,000 Euro by Sporting Clube de Portugal – Futebol, SAD (“Sporting SAD”) established in the original contract of purchase of economic rights to this entity (iii) liabilities relating to the ‘solidarity mechanism’; and (iv) the carrying amount of the player’s registration on the date of sale, in the global amount of, approximately, 9,929,000 Euro;
d) sale of the registration rights of Álvaro Pereira to Inter Milan, by the amount of 10,000,000 Euro, generating capital gains of, approximately, 4,550,000 Euro, net of: (i) intermediation service costs provided by the entity IG Teams & Players; (ii) the proportional sale value of the registration player’s owned by Cluj (20%) and Avendi (5%); (iii) the effect of discounting future medium term receipts and payments to its present value arising from these transactions; and (iv) the carrying amount of the player’s registration on the date of sale, in the global amount of approximately 5,450,000 Euro. Additionally this agreement foresees the payment of a variable remuneration, payable upon the achievement of certain sport objectives by athlete and the club, so the total amount
Consolidated Accounts Report 2013/2014
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receivable could rise up to 15,000,000 Euro; in 2012/13 season the Company recognized an additional income of 1,000,000 Euro, regarding this clause.
Additionally, in January 2013, was sold 47.5% of the economic rights of the player Diego Reyes to Gol Football Luxembourg for 3,500,000 Euro; this operation did not generate any capital gains or losses.
Impairment losses
During the financial year ended 30 June 2014, impairment losses amounting 563,333 Euro were recorded related with the registration of the players Stefanovic because FCP SAD terminated the labour contract with this player during the season 2014/15 and Izmailov, by the fact of the player has been lent during the season 2014/15 being this the last season with labour contract.
Additionally, during the year ended June 30, 2014, player registrations with a net value of 188,192 Euro were write-offed, related to the players Lucho Gonzalez and Thibaut Vion by the fact that FCP SAD terminated the labour contract with this players during the season.
During the financial year ended 30 June 2013, impairment losses amounting 300,842 Euro were recorded related with the registration of the players Emídio Rafael, Bracali, Ukra and Sereno by the fact that FC Porto SAD terminated the labour contract with this players during the sports season of 2012/2013 or in the beginning of the sports season 2013/14.
Players’ registrations
As of 30 June 2014 and 2013, the aggregation of the players by range of its’ registrations net book value is as follows:
As of 30 June 2014 and 2013, in the carrying amount of players’ registrations are included the following players:
30.06.2014 30.06.2013
Carrying amount of Number of Number of
players registrations players Amount players Amount
Greather than 2 million Euro 10 42,003,228 12 59,667,316 Between 1 and 2 million Euro 7 9,979,852 6 8,568,576 Less than 1 million Euro 28 9,522,561 19 7,923,006 45 61,505,641 37 76,158,898
Consolidated Accounts Report 2013/2014
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(a) Player loaned to another club or sports entity in the season 2014/15, whose loan period is not beyond June 30, 2015;
(b) Players whose percentage of economic rights evidenced is deduced, as of June 30, 2014, the share of 50% (Walter da Silva) and 33.33% (Mangala and Defour) transferred to third parties by associated financial interests contracts; (c) Player loaned to another club or sports entity in sports season 2013/14, but which the loan period is not beyond December 31, 2015;
(d) Player whose registration rights was sold to another club or sports entity during the 2013/14 sports season; (e) Player whose registration rights was sold to another club or sports entity during the 2014/15 sports season (Note 36)
The registrations’ percentages presented above take into consideration the sharing of economic rights made on the acquisition date of each player’s registration, or its sale at a later date, as well as the percentages assigned by FCPorto SAD to third parties related with the sharing of the amount resulting from a future sale of these rights.
In addition, commitments were established with third parties, including clubs and sports agents, in order to share the amount of future capital gains that may be obtained through FC Porto SAD players registration rights’ sale, upon verification of specific contractual conditions.
As of 30 June 2014, FCP SAD kept player’s registrations that had been pledged as security for loans, as follow:
30.06.2014 30.06.2013
Players' End of Players' End of
Player registration (%) Contract registration (%) Contract
Danilo 100.0% jun/16 100.0% jun/16
Herrera 80.0% jun/17 80.0% jun/17
Jackson Martinez 100.0% jun/16 100.0% jun/16
Quintero 50.0% jun/17 - -
Diego Reyes 47.5% jun/18 47.5% jun/18
Alex Sandro 100.0% jun/16 100.0% jun/16
Defour (b) (e) 56.7% jun/16 56.7% jun/16
Mangala (b) (e) 56.7% jun/16 56.7% jun/16
Ghilas (a) 50.0% jun/17 - -
Kayembe 85.0% jun/19 - -
Igor Lichnoski 100.0% jun/18 - -
Walter da Silva (b) (c) 15.0% jun/17 40.0% jun/15
Kléber (a) 70.0% jun/16 70.0% jun/16
Caballero (a) 70.0% jun/18 100.0% jun/18
Kelvin 75.0% jun/16 75.0% jun/16
Ricardo Pereira 80.0% jun/18 80.0% jun/18
Licá (a) 60.0% jun/17 60.0% jun/17
Hector Quiñones (a) 100.0% jun/16 100.0% jun/16
Iturbe (d) - - 45.0% jun/16
Consolidated Accounts Report 2013/2014
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Additionally, buy and sale option rights contracts regarding players’ economic rights were established with third parties, namely clubs and sports agents, exercisable for periods and amounts contractually established.