True costs of transfers..a £10 million player

S

scamander

New member

Aug 9, 2011

596

• Aug 11, 2016

• #1

Hi all,

Stumbled across this article which looks at the the Rhodes' transfer and thought I'd share it - quite an eye opener...perhaps Football Manager will update its transfer engine to include all this!

 

Tim Over Whelmed

Well-known member

NSC Patron

Jul 24, 2007

10,183

Arundel

• Aug 11, 2016

• #2

Interesting article, although they forgot the VAT on the agents fee!

 

perseus

Broad Blue & White stripe

Jul 5, 2003

23,456

Sūþseaxna

• Aug 11, 2016

• #3

scamander said:

Hi all,

Stumbled across this article which looks at the the Rhodes' transfer and thought I'd share it - quite an eye opener...perhaps Football Manager will update its transfer engine to include all this!

Click to expand...

For others as I had worked this out already.

Announced selling price and purchase price are two different things so the transfer fees are not very accurate for the Albion as they are not announced and only be guessed at by the accounts. Notably with the Ulloa transfer from Spain when they (Spanish media) announced a fee of £1.6 million, but I daresay Albion paid near £2 million in reality before wages.

Article does not include agent's fees.

 

C

cooliobhafc

New member

Mar 15, 2012

231

Brighton

• Aug 11, 2016

• #4

Wow, that is mind blowing numbers. I did note that they didn't take into account that some players salaries are Net, so the actual cost will be significantly more than that, if the club is paying the players taxes.

 

Gazwag

5 millionth post poster

Mar 4, 2004

30,130

Bexhill-on-Sea

• Aug 11, 2016

• #5

Why do they keep saying "before a ball is kicked" none of the bonuses would be payable the day he signed and salary payments are monthly so at worse a couple of months in the summer when a ball isn't being kicked

 

perseus

Broad Blue & White stripe

Jul 5, 2003

23,456

Sūþseaxna

• Aug 11, 2016

• #6

It all makes very awkward for a club in the clover after being promoted to the Premier League to sign players if they are expected to go back down again.

A player at the Albion on £12K a week with 50% promotion bonuses = £18K.

Who would sign a 3 year contract (w/o a relegation release clause*) at the peak age in their career for less than £25K a week (if they have a 40% relegation wage reduction) = £15K. (*affects transfer fee the club are willing to pay.)

In short, I think we have to sign players in the 24 age group that have a realistic chance of making it in the Premier League. Hopefully, we be in the Premier League before they reach their peak age and will sign a new contract. None of the proven former Premier League players who on too high a wage and looking for a job as they got their club relegated.

 

mikeyjh

Well-known member

Dec 17, 2008

4,485

Llanymawddwy

• Aug 11, 2016

• #7

It's interesting stuff but I suspect that when a team talks about a £10m transfer, some of the costs, VAT etc would be the part that the selling club DOESN'T receive. ie. The reality of selling a £10m player is that you only get, say, £6m in cash or whatever it is....

 

Pavilionaire

Well-known member

Jul 7, 2003

30,559

• Aug 11, 2016

• #8

Tim Over Whelmed said:

Interesting article, although they forgot the VAT on the agents fee!

Click to expand...

But the Albion would claim it back as input VAT on their VAT return £NIL net cost to the club.

 

Tim Over Whelmed

Well-known member

NSC Patron

Jul 24, 2007

10,183

Arundel

• Aug 11, 2016

• #9

Pavilionaire said:

But the Albion would claim it back as input VAT on their VAT return £NIL net cost to the club.

Click to expand...

Touche .... 15-Love

 

Pavilionaire

Well-known member

Jul 7, 2003

30,559

• Aug 11, 2016

• #10

Tim Over Whelmed said:

Touche .... 15-Love

Click to expand...

The broad thrust of the article is correct and reports of Pogba's agent getting £20mill for arranging the world record transfer adds further grist to the mill.