19 Jul 2017 00:28:03
I know you eds don't want to talk about money and transfer fees, and I understand that. Numbers just confuse the readers, they don't show the whole picture and to be honest we should not really care about the money spent by a very rich investment group. But since the fees are apparently more complecs then what we think, could one of the eds give us a bit more information on how transfer fees work? I for one think it would be an interresting read.
{Ed002's Note - I do appreciate that that the Liverpool fans are far from the smartest on the block, but yet again 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 EPL.
(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 £40M plus VAT on agent fees over the past three years leading to this window).
(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) Paying up insurance costs to the selling club (sometimes 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).
(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.
(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.
19 Jul 2017 01:27:13
Oww my head hurts.
19 Jul 2017 06:47:57
Its understandable, but now do people see why the eds don't get into it when people ask about the transfer fee for a specific player?
I have seen this very explanation each summer for at least the last 3 years, and I am sure a reader will manage to persuade an end to reply with it again next season, after every tom dick an harry has asked about the transfer fee for various players again for 6 weeks at the end of the season.
Far too complex to go to that level of detail on every player, and as far as I know a lot of it is left undisclosed by clubs now anyway.
{Ed025's Note - your spot on andy..
19 Jul 2017 07:07:51
In other words, there's a lot to it.
19 Jul 2017 07:37:08
To hard to see why anyone really cares. The club decides if the total cost is right for its budget, the selling club decides if the deal is right for them to let the player go, and if it is right for both a deal is done. Then we as fans see the outcome on the pitch either as to whether a new player fits in, gels with the team and has an impact, or as a selling club as to whether the player's absence is a negative and the money really was not used to good effect!
19 Jul 2017 09:19:04
Transfer fees are not important, that's money which is just circulating within the game.
Agent fees and player wages are a worry as that is money lost from the game.
19 Jul 2017 01:02:21
Thank you ed002, really appreciate the elaboration! I understand transfer fee is a bit misused term since transfers involve so much more than just money one way and a player the other.
cheers and keep up the good work!
19 Jul 2017 02:20:18
Thanks Ed2, you're always kind. So normally the "transfer fee" announced publicly (e. g. 5M for Lucas to Lazio) is only (a) or (a) - (m)?
Btw, just to let you guys know I come from HK and can't wait to see Liverpool in the stadium tonite!
{Ed002's Note - The fee becomes known when entered on the TMS.}
19 Jul 2017 02:51:43
Ed002 has sabali.
19 Jul 2017 06:23:59
That selling club fees Ed, is that something that hits the first club which sells a player who falls under those circumstances? Or does this continue to qualify?
In case I'm waffling - if we sold Grujic in two seasons time to Milan for £30m say. We'd probably pay those selling club fees you list. If Milan then sold him the following season for a higher value cause he continued to improve, would they also have to pay fees too as he would be under 24 still?
{Ed002's Note - Any which are due - so a [ercentage for the time at LFC.}
19 Jul 2017 11:43:36
Cut and paste that long answer to any furher questions on transfers.
Anyone who read, understands that anand has another question probably deserves an answer.
It shows you how some transfers can be protracted and how aome never make it over the line.
Take VVD for example, imagine all the above stages to get through and only 2 out of 3 parties want it to happen.