Hi Rob, not saying you are wrong, just fleshing it out to make this clearer for everyone as you mentally skipped a couple of steps
We sign a new player to a 5 year contract.
Transfer Fee £50M
£10M per year wages for 5 years = £50m
Agent Fees £5M (one off)
Signing on Fee £5M (one off)
Total cost £50m+£50m+£5m+£5m = £110M
Dividing £110m by 5 years means £22M per year on the contract for that player goes on the books
If you sell him after 3 seasons
£66M has been accounted for with £110m-£66m = £44m remaining in the books, however
£10M x 2 of wages = £20m comes off that, so:
Remaining in the books is £44m-£20m = £24M.
Profit made if sold for £80m = £80m-£24m = £56M
And as I always like to point out, wages are a huge factor e.g. if we sold Spence on low wages and replaced with someone free on huge wages like Andy Robertson (also, with no resale value and a short shelf life).