All you need to know about transfers
Transfer time is in full swing. But how the transfers actually work with regard to business? Such questions always remain despite the almost endless stream of rumors, negotiations and deals.
The 4Gamblers team decided to shed some light on this part of the football reality.
How do the transfers work?
Three negotiations’ key rounds are often held simultaneously in a relative transfer deal:
1) negotiations about the price between the buying club and the seller;
2) negotiations between the buying club and the player’s agent about the player’s personal contract;
3) negotiations between the buying club and the player’s agent about the agent’s interest.
The selling club must first give permission to the buying club to negotiate with the player about the potential transfer. But in reality there are always some contact men connecting the buying club and the player in order to assess the player’s interest before the official permission for negotiations.
Many negotiations take place using WhatsApp.
Agents and club leaders prefer WhatsApp for a number of reasons: the phones are always at hand, it’s easier than email, there’s a group chat function. Also there are read notifications, so there’s never a question whether the recipients received the latest information you sent. Also you can write messages and call all over the world from anywhere in the world.
Thus, it is very easy for interested parties to stay in touch without having to track new contact information.
In 2017 WhatsApp is an indispensable tool for many people involved in football transfers.
Clubs can bring back transfer money by selling jerseys, can’t they?
It is often affirmed that clubs can compensate the player’s cost by selling a uniform. This statement is far from the truth!
Deals with a technical sponsor are not traditional sponsorship contracts.
This is a license agreement that allows uniform suppliers to use the club’s logo to sell branded products. Clubs usually receive annual payments. For example, Manchester United receives £ 75 million a year from Adidas, Chelsea – £ 60 million per year from Nike, Arsenal – £ 30 million per year from PUMA and 10-15% of income from the jerseys’ sale.
A new star player usually does not lead to a huge frenzy in jerseys sale, as it might seem. Although you can observe some sales growth in those regions the player comes from.
What about the loan?
It is wrong to consider that the clubs can loan players without their own free will. The player must agree to a transfer in each loan deal. No player is sent to another club without his knowledge and on the terms he clearly disagrees.
The transfer budget is most important, isn’t it?
We often hear the expressions “net spend” and “transfer budget”, used to quantify the club financial strength during the transfer window.
However, clubs do not take into account “net spending” when doing business. Neither any manager ever touches on the “transfer budget”. These faulty judgments about how clubs conduct business are based solely on transfer costs and do not take into account wages at all. In fact, clubs spend more on wages than on transfers.
The concept of “transfer budget” also implies the manager to have some relation to the deal’s financial side. Although in reality the manager seldom participates in negotiations on the transfer or contract key terms.
Clubs that pay the transfer fee entirely are in priority with the selling club, and use it as an ace of trumps. But for large transfers the sum is paid by regular payments within a year or two.
How does the release fee work?
Sometimes there is confusion: a player who has a prescribed amount of release fee gets an offer that satisfies the specified amount, but he is still not sold. The fact is that there are two types of release fee: release actual amount and, so-called, “fair” release fee.
Release actual amount obliges the club, where the player belongs to, to sell it to the one who meets the requirements specified in the release fee. These requirements can vary, but the club management tries to build them in such a way as to prevent the possibility for a direct competitor to activate this item in the contract. For example, the English Premier League club can exclude the possibility for another club to take release fee advantage.
“Fair” release fee is in fact meaningless, because it obliges the club to consider the offer and enter into fair negotiations for the player’s sale.