15 Jun 2017 22:12:23
Evening all. I have just read a fantastic article regarding the complexities of the current transfer market and the current climate. The article suggest that there are many significant hidden costs and that reported media fees are a total sham in order to engage with the fans.

First off the example was made if United spend a ‘reported’ $50m on a player the true cost is really much higher yet the selling club will not see anywhere near the entirety of that amount. Therefore if the same player doesn’t settle and is sold for a reported $45m the following year the true difference will not be anywhere near $5m as naive fans would proclaim.

When adding a player to the balance sheet of course his fee is a depreciating asset over the period of his contract (5 year deal, $10m p/ a) but when you add in increased liability and expenses such as wages, insurance etc this ‘fee’ increased astronomically.

It also talks about the agents in the game leeching off someone elses ability and how third party ownership is crippling the market. Apparently it has got to the stage some agents have more ‘clout’ than internal staff at certain clubs. As a selling club the player may also be contractual obliged to get a cut of the fee hence why fee’s are inflated to accommodate such clauses often facilitated by the agent.

So essentially if you see a deal for a token Morata or Belotti cross the line for a reported ‘$70m’ that figure will likely be increasingly higher and if the club ‘cut their losses’ the loss will be staggering compared to what is reported.

{Ed002's Note - As I have said repeatedly, football fans need to forget the money as it simply confuses them.}

1.) 16 Jun 2017
16 Jun 2017 03:21:32
Ed I agree completely. It is staggering.

2.) 16 Jun 2017
16 Jun 2017 07:03:29
Are you saying maze/ JMB/ Rollo/ etc is confused ed?

3.) 16 Jun 2017
16 Jun 2017 07:30:06
Is it just football transfer money we should not try to learn about or does that extend to anything difficult in life? My nephew is confused by maths at school. Will I tell him just to forget about it?

{Ed002's Note - Seebd him by, let me tell him about girls.}

4.) 16 Jun 2017
16 Jun 2017 08:32:05
The one that gets me is 'player A sold for a certain amount so player B must be worth just as much if not more' without consideration of the possible difference in wages which is part of the overall financial package a buying club must budget for.