29 Apr 2015 19:04:00
Ed002 I have a request for you, it's this time of year that you start telling us how we have no idea how transfers work, what with different fee's, clauses etc. so I was wondering if you could provide us with a reading list so that we could educate ourselves on such matters

{Ed002's Note - As for the transfer process goes, clubs will typically informally ask an agent (a) if the player is going to be available, and (b) would the player consider a move to the club. There may be some broad discussion on the sort of deal that would be offered. If the answer is yes, it is then necessary for the club to approach the player's club to ask if they would be willing to sell and if they would grant permission to speak to a player's agent and possibly even the player about actually making a move. This will typically involve either broadly (through an offer) or actually agreeing a fee and responsibility for any significant costs (agents fees etc.). Once this has happened the club will be able to speak to the player's agent and perhaps the player himself to look at the package that will be involved. Many players are looked at and discussed at a high-level with agents and clubs; a subset of those have an offer placed; a subset of those involve discussions with the player's club; a subset of those involve discussions over terms, and; a subset of those go ahead.}

It might also, as you suggest, be an apt time to explain again about the cost of transfers (excluding wages). 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 (as an example, Liverpool have spent £25M plus VAT on agent fees over the past three years leading to this window).
(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 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 owed wages (not future wages) and bonuses).

So as experts, I assume there will be no more questions on the subject until 2019/2020.}

1.) 30 Apr 2015
30 Apr 2015 11:24:22
Excellent, Thanks mate. Genuinely really helpful

2.) 30 Apr 2015
30 Apr 2015 13:38:26
Bravo ED002. Well explained

3.) 30 Apr 2015
30 Apr 2015 13:40:22
going by that list, we should be shopping in poundland because it looks expeeeensiveeee to buy any player. haha

4.) 30 Apr 2015
30 Apr 2015 15:13:43
Total respect Ed.

5.) 01 May 2015
30 Apr 2015 19:41:45
ed 002
thank you, very much good info there
COYG andi

6.) 01 May 2015
30 Apr 2015 20:01:58
Wow! Thanx ed! Dint know it was that complicated to sign a player! No wonder Wenger hates january transfer window!

7.) 02 May 2015
02 May 2015 15:26:55
Ed, you need to get out more! But Bravo :-)