Transfer window financials

[Hellerad]

Nah - it's in all cases:

Subject to Rule V.39, upon payment of a Compensation Fee, a Contingent Sum or a payment
made pursuant to Rule U.37, a Club shall forthwith pay to the League a levy equal to 4 per
cent. of the sum paid (net of any Value Added Tax) and in the case of a Compensation Fee
payable by instalments, the levy upon the whole of it shall be paid as aforesaid upon the
Transferee Club applying to register the Player to which it relates.

Compensation fee = a transfer fee
Contingent sum = any other fee associated with a transfer
Payment made under rule u37 = a fine for missed payment

All 3 are subject to the levy.

Essentially if Club X receives compensation for the transfer of a player's registration, the league gets 4% of the value paid. v.38. If a player is loaned, there is no levy unless the loan is made permanent during the loan or within 4 months after the loan. If that occurs, the levy is not only on 4% of the transfer fee, but 4% on the aggregate of the transfer fee + the loan fee. v.39. If Club Y is ordered to pay a fine to Club X for failing to meet a payment schedule, Club X has to pay 4% of that penalty to the League as well. v.37.

It looks to me that any time money changes hands regarding the permanent transfer of a player registration, the League gets 4% of the fee. This fee cannot be paid in installments, even if the original transfer fee is paid in installments.

For example, if McCarthy really is 4.3m over 3 years, Wigan have to pay 4% of 13m up front (520k).

Everton --> Wigan: 13m (paid over 3 years at 4.3, 4.3, 4.3+)
Wigan --> Everton: James McCarthy
Wigan --> Premier League: 520k

By default, the levy is paid by the selling club, not the buying club, although I'm sure that sort of thing is subject to the agreement of the contracting parties and becomes part of the fee negotiations.

 

[Ralphie Boy]

Whitty, the heading says transfer financials, it's not my fault he/she did not mention any area specifically, that is why I mentioned the previous transfer window and the supposed money available to be tied in with the last transfer window and how it should be a factor as I think what we probably all are trying to decide who and how deals are made and have in all sts after the original has posed various questions.

P.S. This is a forum......we can have an opinion without it being personal but I admire you for sticking up for the author but am sure he can do that himself!!!!!!!

 

[Whitty]

So the Premier League made over £3m from the Bale transfer alone?

What do they do with the money? Does the FA get a % to go to grassroots?

 

[Whitty]

i genuinely dont see what Fer has to do with anything regarding the deals we did this summer. Forget about it though. Sure we've both got bigger things to concentrate on

 

[Bruce Wayne]

Nah - it's in all cases:

Subject to Rule V.39, upon payment of a Compensation Fee, a Contingent Sum or a payment
made pursuant to Rule U.37, a Club shall forthwith pay to the League a levy equal to 4 per
cent. of the sum paid (net of any Value Added Tax) and in the case of a Compensation Fee
payable by instalments, the levy upon the whole of it shall be paid as aforesaid upon the
Transferee Club applying to register the Player to which it relates.

Compensation fee = a transfer fee
Contingent sum = any other fee associated with a transfer
Payment made under rule u37 = a fine for missed payment

All 3 are subject to the levy.

Thanks for that. Out of interest, how on earth did you find out about that? Can't imagine you read the handbook for kicks, and I can't see any mention of it in the popular press.

 

[MACCA75]

Also worth noting that the wages given to Moyes, Neville, Hitz and Mucha will have stopped at the end of May? With a similar amount on Barry, Lukaku and McCarthy not starting until September. - A wage bill saving of around 2 million on the figures given by the O.P.

 

[Goat]

Contracts are paid till the end of June.

And any wage bill saving was wiped out by the compo paid for Martinez and his coaching staff.

Break a leg has made a few bob out of us this window.

 

[deipnosophist]

confirmation needed

The Fer deal was to be paid over the term of his contract, and it never went through when we wanted to pay a smaller amount up front.

As for McCarthy, we can ascertain from what Whelan was saying to anyone that would listen, we had tried to pay the transfer amount over 4 years. Similar to the Felli deal we done with Leige. So, the next few years we will have a 4 million chunk to pay to Wigan for McCarthy.

...this Whelan bloke, I have heard his leg gives him gyp...is this true?

 

[deipnosophist]

With all the odds and sods/accoutrements of transfer financials and wages, it is damn difficult to get an accurate 'net gain/loss snapshot '.
Ideally, a special section of the financials (ie a note) should describe the numbers

 

[ToffeeDan]

11-12 Wages Bill £63M

So, we'll say £60M is for the playing staff

The 11-12 Squad was - in some sort of approximate wage order (fraction indicates only on wage bill for a part of the season)

Weekly estimate

1/6 Arteta 75
Cahill 75
Neville 75
Moyes 70
Fellaini 65
Pienaar 65
1/6 Yakubu 60
1/4 Donovan 60
1/2 Saha 50
1/2 Bilyaletdinov 50
Jagielka 50
Heitinga 50
Baines 45
1/2 Jelavic 40
Gibson 40
Rodwell 40
Osman 40
Howard 40
Distin 30
Drenthe 30
Hibbert 30
Anichebe 30
1/6 Beckford 20
Coleman 20
Gueye 10
McFadden 10
Mucha 10
Stracquilarsi 5
Vellios 5
Hahnemann 5

other players, juniors et al (including Barkley for example) small amount of wages.

If these figures were correct the total wage bill would be IRO £950K per week. This is £50M - you can add on a significant sum for other benefits, agent fees, loan costs, National Insurance etc. you start to get close to the £63M shown in the 11-12 accounts.

 

[The_La]

Honestly can't remember for definite, but have feeling it might have been in either an Elstone blog or on SSN deadline day coverage.

 

[paultheblue]

So the Premier League made over £3m from the Bale transfer alone?

What do they do with the money? Does the FA get a % to go to grassroots?

Who is this Grassroots fella who keeps getting all this money?

 

[Village Idiot]

Who is this Grassroots fella who keeps getting all this money?

 

[formerly manx toffee]

Can't believe we spanked 7k on Kone FFS.

 

[Neiler]

11-12 Wages Bill £63M

So, we'll say £60M is for the playing staff

The 11-12 Squad was - in some sort of approximate wage order (fraction indicates only on wage bill for a part of the season)

Weekly estimate

1/6 Arteta 75
Cahill 75
Neville 75
Moyes 70
Fellaini 65
Pienaar 65
1/6 Yakubu 60
1/4 Donovan 60
1/2 Saha 50
1/2 Bilyaletdinov 50
Jagielka 50
Heitinga 50
Baines 45
1/2 Jelavic 40
Gibson 40
Rodwell 40
Osman 40
Howard 40
Distin 30
Drenthe 30
Hibbert 30
Anichebe 30
1/6 Beckford 20
Coleman 20
Gueye 10
McFadden 10
Mucha 10
Stracquilarsi 5
Vellios 5
Hahnemann 5

other players, juniors et al (including Barkley for example) small amount of wages.

If these figures were correct the total wage bill would be IRO £950K per week. This is £50M - you can add on a significant sum for other benefits, agent fees, loan costs, National Insurance etc. you start to get close to the £63M shown in the 11-12 accounts.

Baines on 45k, how the hell did we keep hold of him.