Free Transfers Cost Money?

[tt29126]

Hi I recently signed a player who's a free agent. In the contract offer he demanded 2million signing on fee and his agent wanted 1.2 million agent fee.

When the transfer goes through I get the notification that 1.7 million will be deducted from my transfer budget. Why? Isn't the signing on fee and agent fee deducted from club finances instead of transfer budget? And even if it is from the budget, where did the number 1.7 come from?

 

[craiglowerson1984]

You still need to pay agent fees and a signing on fee to the player

 

[Murley]

As stated. He may be free to sign as your not signing him from another other club, but himself and his agent may want money for the deal too. Who else would pay for the fees?

 

[tt29126]

See first post please.

 

[craiglowerson1984]

See first post please.

Signing on fees and agents fees are part of a transfer, that's why its taken from transfer kitty

 

[tt29126]

Then I should be paying 3.2 million?

 

[RichTUK]

was he a free agent or out of contract at a club, sounds like compensation for me which you have to pay on any out of contract player 24 or under in the UK I believe.

 

[Murley]

Is his contract over 3 years?

 

[craiglowerson1984]

I could be wrong, but when people sign new contracts they get a loyalty bonus instead of a signing on fee.

Maybe when signing free transfers you can not offer signing on and loyalty fees.

So in this case the agent gets £1.2mil and player gets £500k signing on fee with the other £1.5mil being set aside for loyalty clause??

just a theory

 

[craiglowerson1984]

was he a free agent or out of contract at a club, sounds like compensation for me which you have to pay on any out of contract player 24 or under in the UK I believe.

Never thought about compensation- good shout

 

[tt29126]

It's Pereyra. I'm buying him in second season as Arsenal. His contract with Juventus expires on June 30, but it's June 27 now.
He's 24 so is it a compensation? Because when I approach to sign him, there wasn't any notification about a compensation as there usually would in the bottom right corner of the contract offer box.

 

[iamauser]

This is because the signing fee and agent fees. However, I am a little unsure of where the £1.7M comes from. If you add the two fees together then half it you get to £1.6M so with rounding etc if could be that half of it comes out of your TB?

 

[Crane]

Nope, it's the loyalty bonus and the agent fee. The agent will get his upfront, the player gets his over the course of his cntract.

 

[craiglowerson1984]

Nope, it's the loyalty bonus and the agent fee. The agent will get his upfront, the player gets his over the course of his cntract.

yeah thought so

 

[tt29126]

Nope, it's the loyalty bonus and the agent fee. The agent will get his upfront, the player gets his over the course of his cntract.

And because he signs a 4 year contract, the first year is paid upfront.
2mil divided by 4 is 500k. Add to 1.2mil agent fee = 1.7mil?

Wow never knew how it worked. Thanks everyone.