Reference
Football Finance Glossary
Each entry gives a plain explanation first, the accounting treatment second, and a football example to anchor it.
Simple
Spreading the cost of signing a player across the years of their contract.
Accounting
A transfer fee is capitalised as an intangible asset and written down, usually on a straight-line basis, over the contract term. The annual charge hits the profit and loss account.
Football example
A £60m signing on a five-year deal creates roughly £12m of amortisation each year.