05 Aug 2016 01:24:10
Just trying to put a transfer scenario into simplistic terms, so any Ed input would be great. Again the figures are illustrative only.
1. Everton buys Rom for 28M
2. Everton sells Rom for 68M
3. Everton paid Rom 40K/ wk, and 2M/ year
4. Everton buys Benteke for 30M
5. Everton spent 28 + 4 + 30 for 62M
6. Everton received 68M
7. Rom played 2 years for free
8. Benteke is free paid for by profit
9. Benteke has pay for 2-3 years left over
(Benteke just an example of recent rumors and innuendos, although I saw the game 3 years ago (on television) when he played for Belgium. He ran over the USA defenders like Godzilla over Tokyo) .
Is my simplified math right? Where does the agent or taxman's cut come in?
{Ed007's Note - I don't know if this note I've got from Ed002 clears up what you want to know but here goes:
What is paid by the buying club 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.
(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).
(n) Variables and tax on variables which may or may not be reclaimable) – these would typically include legal fees, moving/relocation costs, etc.. This was off the top of my head and I may well have forgotten something. The big numbers are the transfer fee, agent fees and possibly other intermediary fees (what do you mean you have a super agent?}
With outgoing transfers what is paid by the selling club would typically include:
(a) If the player is under 24, a Solidarity contribution paid to his previous clubs responsible for his training - this is 5% of the transfer fee received.
(b) Any monies owed to the player if he did not request a transfer – again this is 5% of the transfer fee received.
(c) Any monies owed to the player in terms of his contract (typically outstanding wages and bonuses).
05 Aug 2016 08:33:14
For at least the peceding 15 years before Roberto Martinez, this is exactly how Everton FC functioned as a business. Our net spend over the 11 years of David Moyes period (on players fees) was just over 1 million pounds. Likewise, the 5 years of Walter Smith's reighn cost us again around 1 million pounds on plaayers fees. That is to say the 15 years of previous management cost Everton FC 2 million on players. A remarkable figure when you think and compare with clubs like Newcastle United and Aston Villa. I cannot remember exactly what the figures were under Martinez, but I "think" his net spend was around 50 million. Make of this info whatever you want. It is not aimed at a dig at Martinez nor to build up previous managers. It is just information that staggered me as an Evertonian.
05 Aug 2016 08:53:30
So if you look at what we have to pay as the selling club this is probably the reason why we are demanding £75m for Lukaku, as we would have to pay 5% to both Chelsea and Anderlecht, plus 5% to Lukaku himself which would take the amount we receive down to £63.75m. I now see why we are refusing £60m bids and also why Lukaku is using his dad and agent to make noises about leaving as if he requests a transfer he will lose £3.75m. See this one dragging on.
05 Aug 2016 09:09:42
2 good posts above. Fair and honest facts.
05 Aug 2016 09:19:24
He didn't include bus fares!
05 Aug 2016 09:42:02
You don't know the half of it when it comes to the finances of running a club. I saw a Sheffield clubs full accounts sent to shareholders two years after they were relegated and it was horrendous.
I've also seen a couple of wage slips for players and again the things that are put into contracts are just comical. Extra pay for attending training, more for the team being in the CL and then a top up on that if he PLAYS! Attending functions, giving interviews, MOM, personal visits, training sessions with the younger players and much more than we will ever find out about.
I'm amazed they make any money at all!
05 Aug 2016 02:18:15
It appears that the unemployment rate around the world for accountants will perpetually be quite low.
Thanks, Ed.
{Ed007's Note - It's a complicated business mate and when you see transfer fees being used to grab headlines or posters arguing about costs etc most people don't realise the other costs involved.}