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Calculations: FC Porto had to reap capital gains from business with V.I.  Guimarães

Calculations: FC Porto had to reap capital gains from business with V.I. Guimarães

SAD, from FC Porto, explained, in a statement, that it has to change an important aspect regarding the accounts submitted on June 30. In that time, the Dragons recorded a gain of 14.1 million euros with the sale of young Francisco Ribeiro (11 million, gaining 10.33) and Rafael Pereira (4 million, gaining 3.76 for Guimarães’ win).

However, in the same period, FC Porto also bought two youngsters from FC Minho (Roman Correa and Joao Mendes), and they evaluated the deal with the same amounts.

The accounting auditor immediately expressed his reservation: “We have not obtained sufficient audit evidence to allow us to conclude an appropriate assessment of these transactions and the subsequent impact on the financial statements. (…) We are confident that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.”

Now, the dragons reported that this recording “reversed the following interactions with CMVM”.

«Football Clube do Porto – Futebol, SAD, after separate transactions for the acquisition and disposal of sports “passes” of players of the same counterparty, recorded, in its accounts as at 30 June 2021, a capital gain of €14.1 million (shown under “Income from transactions of player pass”) and intangible assets of the same amount. This registration has now been reversed following interactions with CMVM, as these operations do not generate any value added, with the Board of Directors of Futebol Clube do Porto – Futebol, SAD pursuing a reformulation of the annual accounts, as these transactions constitute the exchange of assets, in light of the provisions of paragraphs 45- 48 of IAS 38”, says SAD Porto.

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With this relevant change, “The items related to players’ passing had a negative net balance, now €19,825 million, as sales of sports rights to players in this first semester were valued at irrelevant amounts, given that FC Porto – Futebol decided SAD reviews the accounting policy applicable to transactions involving the acquisition and sale of sports rights to players with the same counterparty.

Also note for intangible assets – assortment value. In this parameter, the values ​​attributed to Romain Correia and João Mendes, who replaced V. Guimarães for FC Porto, who currently represents the Dragons’ B team, are no longer counted.

“Net amounts including the impact of the financial update of €11.3 million and €2.8 million relating to the acquisitions of players Romain Correa and Joao Mendes, respectively, are derecognised with reference to the period ending June 30, 2021,” the club explains. Porto SAD, in the consolidated report and accounts.