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Amortisation
If Birmingham sign a player we generally know how much has been paid in transfer fees, the figures from www.soccerbase.com are a good source.
The club has to pay the transfer fee to the selling club. In the club accounts it then has to report how much it views each player's worth has declined each year. So for example Frank Queudrue joining for £2,000,000 on a four year contract costs the club £500,000 per year. This is what is reported as 'amortisation' in the club accounts. At the end of the contract the player can just leave on a 'free' so he is viewed as potentially no worth to the business after that.
This only covers the costs for players bought in. So , for example, Lee Carsley does not have any effect on the amortisation costs of the club, as he joined on a free. Also once a player has finished his initial contract he stops being counted. So if Maik Taylor was signed on a three-year contract for example, he now has no effect on amortisation
The annual amount the club are paying out for players goes up and down as the team does. This shows that players are bought when Birmingham go up, then shipped out when they go down. The 2008 figure was high again as there was a lot of players brought in for that season.
If a player is sold when he has no worth on the books the club see this as pure profit. So Matthew Upson was with Birmingham long enough to not have any value on the books. When he was sold that would all be seen as straight profit.
