Wages are a just a regular cost, not a 'business expense', so they will NOT be amortised.

If Rice is on 200k p/w, that money every year will just be a cost deducted in the profit and loss statement. It Is recognised as soon as it's paid, or around that time.

Wages // profit and loss statement = 'net profit;.

This net profit is just put as 'retained earnings' in the balance sheet.

Whereas Rice, as a 100million pound player, this transfer fee can be amortised and split up.

Declan Rice is an "ASSET" on the Arsenal balance sheet. Just like a truck, or a building is an asset to a regular business. Declan is a 100million asset. That is his value - wages not tied to this.

Arsenal could even pay the 100million all up front but the amortisation would still allow it to be spread over 5 years since players are "assets not liabilities or costs". Thus, the 100m is split into 20m a year increments deducted each year until his contract runs out (100, 80, 60, 40, 20, 0).

I hope I answered this question for you.