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Wednesday, 17 August 2016

Innovative Transfer Deals

TRANSFER TALK


We missed out on Antonio Sanabria because of an innovative part purchase deal earlier this summer (plus the fact he wanted to stay in Spain because of the language). Real betis bought 50% of his economic rights with Roma then getting 60% (if my memory is correct) of any future profit from another transfer.

It turned out well for us because we signed Dutch striker Vincent Janssen who has already caught the eye. That will not be the only innovative deal, as clubs look at different ways of buying players amid the constraints of Financial Fair Play.

Income dictates a lot and it dictates how much you can spend in a transfer window, you can't just simply spend what you want. It may seem like it when sides spend over £100-million but they have incomes in excess of £300-million.

We scouted João Mário but initial enquiries showed the 23-year-old midfielder to be too expensive. Portuguese newspaper A Bola claims that the proposed João Mário deal to Inter could be a £13.65-million (€15m - AUS$21.92m - US$16.91m) loan + a £27.30-million (€30m - AUS$43.84m - US$33.82m) obligation to buy at the end of the season.

We see a lot of season-long lean deals with purchase options at the end now as it moves payment from one financial year to the next, meaning you can still sign a player even if you can't afford to pay for them right now. A loan has a fee attached to it, usually unless it is a developing player, and that gets added to the transfer fee for a total price a club is receiving. The João Mário transfer shows the loan fee as being somewhat higher than normal, thus spreading payment.

 Perhaps we will start to see some more innovative deals.



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