09 May 2019 12:00:38
Ed02 if your about pal a quick question if possible! When a certain transfer goes through regardless of price do all the authorities get a percentage Fifa, UEFA, FA or us it just club and agent?

{Ed002's Note - It might be an apt time to explain again about the cost of transfers (excluding wages). What is paid by the buying club would typically include:

(a) Transfer fee - the big number.
(b) Any levy applied by the local FA – 5% for the Premier League.
(c) Tax due on the transfer fee – typically this will be VAT (at varying rates across Europe) some or all of which should be reclaimable.
(d) Agent fees – this may be to one or more agents (as an example, Liverpool have spent £44M plus VAT on agent fees (nearly double the next highest) last season alone).
(e) Tax due on the agent fees – typically this is VAT at the local rate where the agent bills from – it is not reclaimable.
(f) Intermediary fees – this may be to one or more sponging leeches (what do you mean you have a super agent?) .
(g) Tax due on the Intermediary fees – typically this is VAT at the local rate where the Intermediary bills from – it is not reclaimable.
(h) Signing on fee to the player (possibly including non-reclaimable VAT if the player is VAT registered).
(i) Legal fees.
(j) VAT on legal fees which is reclaimable.
(k) Moving/relocation costs for the player.
(l) VAT on moving/relocation costs which is reclaimable.
(m) Solidarity and Traing Contribututions (see below).
(n) Paying up insurance costs to the selling club (usually waived).

What is paid by the selling club would typically include:

(a) If the player is under 24 and moving between different football associations, a Solidarity contribution paid to his previous clubs responsible for his training - this is 5% of the transfer fee received (apportioned 5% of the contribution for each year from the season of his 12th birthday to the season of his 15th birthday and 10% of the contribution for each season from his 16th to 23rd birthdays). This is generally (there are exceptions) recoverable from the buying club but responsibility (that is meant to be with the buying club) can be assigned to the selling club.
(b) If the player moves to a higher category club (all clubs being categorised 1 to 4) then Training Compensation is due for the period of age 12 to 21. Compensation is due to all clubs when the player turns from amateur to professional and thereafter only when he moves from his final training club to another club. The initial training compensation is levied at the training costs associated with Category 4 clubs. The subsequent figure is agreed between the sides or tribuneral if necessary. This is generally (there are exceptions) recoverable from the buying club but responsibility (that is meant to be with the buying club) can be assigned to the selling club.
(c) Any monies owed to the player if he did not request a transfer – again this is 5% of the transfer fee received.
(d) Any monies owed to the player in terms of his contract (typically outstanding owed wages (not future wages) and bonuses).
(e) Any money contractually due to a previous club as the result of a sell-on clause.}

1.) 09 May 2019
09 May 2019 12:35:26
Your knowledge is second to none Ed!
I wasn’t expecting all that I can see why transfer negotiations can drag out now I appreciate the answer and time cheers pal.

{Ed002's Note - You are welcome.}

2.) 09 May 2019
09 May 2019 13:12:15
Hi Eds,

Such a good break down! Did football always have intermediary fees? I noticed you linked this to "sponging leeches" I 100% agree on that note, but I'm wondering did football transfers always have leeches, or did this only become a thing until clubs started paying millions for players?

Thanks for all your great work :)

{Ed002's Note - Some clubs have refused to pay them - notably two Premier League sides. They have been around for quite a number of years.}

3.) 09 May 2019
09 May 2019 13:53:17
Who exactly is the selling club paying all this to?

{Ed002's Note - I assume you could not be bothered to read it.}

4.) 09 May 2019
09 May 2019 14:47:40
Love the info and knowledge you share ED02.
Thanks for your ongoing contribution to this site and platform.

5.) 09 May 2019
09 May 2019 17:34:21
It's no wonder you say don't take any notice of the reported transfer fees. It's far more complex that I imagined.

Thanks for sharing, the work all the Ed's do and information you all share is well and truly appreciated!

6.) 09 May 2019
09 May 2019 18:04:45
Why has Liverpool paid more than double the next club in agent fees? I know brought in several expensive players, but it seems we are paying a higher ratio of agent fees than other clubs.

{Ed002's Note - They are not terribly smart.}

7.) 09 May 2019
09 May 2019 19:08:38
Would highly recommend people save this breakdown, it's helped me keep my feet on the ground for the last couple years at this point.

8.) 09 May 2019
09 May 2019 21:21:52
Regarding the solidarity fee, if a player moves a number of times before he is 24 eg Sancho to Germany and then to Spain (say) and then back to England, does it get paid each time? If so does it get paid to every club since he was 12 again?

{Ed002's Note - First signing as a pro after leaving his training club and each International transfer. So in your example yes it would get paid each time until he is 24.}

9.) 10 May 2019
10 May 2019 07:01:29
Someone asked why we spent nearly double in agent fees, larger transfer fees and spending more than anyone else contribute to this skew also.

10.) 10 May 2019
10 May 2019 11:46:59
God football is a money pit! Imagine how much money is spent in the game for 1 year. Queue the Dr evil finger to mouth.