25 May 2017 10:26:08
Ed, I wondered if could pick your brains over a transfer query I have, I was just wondering, is it a lot more expensive to bring a player in than sell one. For example say we sold Barkley for 30m and bought Sigurdsson for 30m, it wouldn't be as black and white as breaking even? . Taking wages out of the equation, there would be signing on fee's, agent fee's etc for the incoming transfer. Are there any additional incomes generated from an outgoing transfer? . Or is it a case of 30m and that's it.

{Ed002's Note - It depends on various factors Gibbo, particularly whether the player is under 24 and was developed by the club but it would be a saving rather than an expenditure in the case of RB. Typically selling a player brings in a fee but it does incur costs as well.

In simple terms:
what would be paid by the buying club (Everton) for Sigurdsson 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 (this will be several million pounds).
(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 (Everton) for Barkley) 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). So for RB this is zero.
(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. Zero in the case of RB.
(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. Zero for RB.

1.) 25 May 2017
25 May 2017 11:24:58
Thanks ed, great insight.

{Ed002's Note - You are welcome Gibbo.}

2.) 25 May 2017
25 May 2017 11:56:26
I don’t get it I thought Ross wanted 100k and Sigurdsson wants 120k so are we saying Sigurdsson is worth 20k per annum more? Bringing age into account its a little bit strange to me .

{Ed002's Note - That would be per week not per year. My advice is not to worry about the wages at all.}

3.) 25 May 2017
25 May 2017 15:24:08
Very interesting Ed.

{Ed002's Note - It starts to put transfers in to context.}