I can see it working both ways. For instance, if they say "he's in negotiations with X" then other clubs may go "ah, well we'll go for someone else" whereas if they say "There's been no contact" clubs may go "Right, well that should be an easy one to get sorted!".
You've missed the point in that we had everything agreed, and he seems to have reneged on the agreement - whether that's the player or the agent that is to blame I don't know, but to blame the club for doing everything they need to do in a transfer (agree fee, keep player happy, keep agent...