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07 Jan 2018 19:34:26
Hi Ed's

Just wondering, although not relevant to the fee or anything, is the fee subject to any VAT or is that taken after the agreed fee?

{Ed002's Note - A good question and 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.
(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.}

1.) 07 Jan 2018 20:16:07
briliant ed, thank you for everything.

2.) 07 Jan 2018 20:23:59
So does that mean the 140 odd million is not the full amount Barcelona will be paying out?

{Ed002's Note - No, they have to pay all of the other costs - it is the same for all transfers.}

3.) 07 Jan 2018 20:38:38
Great info Ed002.
(c) Any monies owed to the player if he did not request a transfer – again this is 5% of the transfer fee received.

Is this what's often called a loyalty bonus? Can we assume Couts will NOT be getting this?

{Ed002's Note - It is 5% but any bonuses - loyalty or otherwise - is contractual between the player and the club.}

4.) 07 Jan 2018 20:43:56
This website is boss! Cheers eds for sharing info wicked job!

{Ed002's Note - You are welcome.}

5.) 07 Jan 2018 20:54:41
Jeez Ed002 have to bow to your understanding of how all this stuff actually works. Would I be right in thinking then that the true cost of a transfer is rarely the figures we as fans hear?

{Ed002's Note - Right - you can add perhaps 20%. As an example Liverpool has spent about £45M on agent fees over the last three years.}

6.) 07 Jan 2018 20:56:53
Wow Ed002, thank you for the detailed information.

{Ed002's Note - Always worth a reminder.}

7.) 07 Jan 2018 20:59:41
Just to clarify ed002, Liverpool will have to pay inter and any other team he played for after the age of twelve for training?

{Ed002's Note - No, he is too old.}

8.) 07 Jan 2018 21:03:44
Cheers eds002 It’s like been at school sometimes this site, full of gobby kids shouting their mouths off, but a few good teachers sharing their knowledge, it’s apprieciated.

9.) 07 Jan 2018 23:58:48
Who categorises clubs ed? (1-4) And what is that based on?

{Ed002's Note - FIFA and it is driven by the level played.}

10.) 08 Jan 2018 00:21:57
Brilliant detailed breakdown ed2, been a long time coming with all the people the last couple of windows not understanding transfer fees and hopefully a lot of them see this.
Heck i’d always chime in an tell them about several other fees/ costs but bloody hell I didn’t realize there was actually so much! i’d hate to be an accountant for a football club 😂.

{Ed002's Note - You are welcome.}

11.) 08 Jan 2018 01:20:42
Ok cheers ed.

12.) 08 Jan 2018 11:15:02
Hi Ed, my first time on this site (I did post last night but can’t find it anywhere) do you know what the add ons are in the Couts deal? I’d read somewhere that the £40m was based on appearances which concerns me seeing that Barcelona can’t play him in the champions league and can afford to bench him in league games until next season.

{Ed002's Note - Don't worry about it. The money will be spread over a longer period and certainly none of it will be due this season. It will realte to appearances and winning the CL in the future. And forget the amounts involved.}

13.) 08 Jan 2018 13:26:56
Many thanks for the breakdown Ed.

I think the role of agents and at times their ridiculous fees and behaviour will be highlighted this year by the media.

The clubs need to join together to cap agents and advisors fees.

Another scandal is how badly footballers are advised on their finances. I know of big name footballers being pushed into investing into completely unsuitable financial products at the behest of sub standard and at times crooked financial advisors. The young lads need looking after because careers in the game are rarely long.

All the best.

{Ed002's Note - The authorities have already taken action to limit the payments to registered agents but some players have other representatives yadda, yadda, yadda. Mino will get something in the order of €50M by the time Paul Pogba completes his MU contract - and yes you are absolutely correct in that it is indeed pretty obscene. Most clubs, certainly in England, are pretty good at working with the players to ensure that they do not get involved in any dumb deals although it is fair to say there is a clear disparity between the best and worst in this case, but generally England is OK on that front.

And to be fair, the authorities are constantly working to clean up the game with respect to payments for image rights, the use of Trusts (there was a lengthy resolution in England but it is cleared now), unusual payment schemes etc.. There have been instances in the past where players have been paid via offshore trusts, limited companies for services rendered to the club and in tax-exempt oil paintings and cars. These were referred to as “loopholes” and they have pretty much all gone by the board now, although I know of one now ex-EPL player who was until recently being paid via his residency of Monaco. The clubs all realise that there is a need to resolve these issues and to settle because the consequences of litigation are potentially very harsh.}

14.) 09 Jan 2018 00:22:22
(f), (g) and (h) is recoverable dependent on the contractual obligations and wording. I provide input on the structure of transactions specifically to allow this.

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27 Jan 2015 23:16:58
Can't believe some of the criticism. What a game! Both teams what a credit to our clubs. Don't want to argue about any penalties or wrong decisions, at the end of the day, we went the Bridge and gave them a game. couldn't have asked more from our team. I don't mind losing like that at all, losing against a lower team when not performing winds me up but that was sheer entertainment, what football is meant to be about. Well done lads!

1.) Great effort but we still got beat!

2.) The boys gave their best and credit BR for getting them ready to play. How did Costa stay on the field?

3.) Please stop praising BR. We lost because of him. He played G.J for 1. Gerard for 120 minutes. left Lallana out. and why is Borini still not no.1 striker. leave sterling to be a wide forward and get on with things. The thing with BR is even when he gets the formation right and the tactics he still makes glaring personnel blunders and chooses his "boys". and it hurts the team. most people end up being less effective. the fact that people are versatile doesn't mean they give the best output in positions they are played by the nose. Chelsea was there for the taking we just had BR as a coach that is all. He has a way of undoing his own work which is really frustrating for me as a fan. I would like to appreciate the team, though they gave their all yesterday. With a better coach they were good for wembley. Kudos to Migs.

4.) 28 Jan 2015 17:47:26
Ron the Red

Spot on, Sakho off & then move players back to where ineffective a few games ago with others played totally out of position ie GJ left CB.

15 Sep 2014 19:26:40
"The chaaaaampions." Boy it's been a while but that tune will give me goosebumps tomorrow!

Proud to have our boys back in it, it'll be amazing to have the nights back at Anfield. Relishing the RM game too!

06 Aug 2014 23:25:19
Hi Eds

Just want to get your opinion. Based on the current squad, what are your expectations for the upcoming season? I personally expect a top 4 fight. Anything else is a bonus for me. Also, is there anything in particular about the current squad you're going to be watching for this season? Both subjective questions but interested in your opinion.

{Ed002's Note - I expect Liverpool to be looking to get in to the top four and through the group stage of the CL.}

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19 Feb 2015 18:35:56
Maybe you need someone else on board then :-) I wouldn't mind helping out with technical web stuff.