Loyalty Bonus & Agent Fees

[JPE09]

HI Mates!

I need to ask all of you this question:

Are both costs, Loyalty Bonus & Agent Fees, against my transfer budget or should they be included in my weekly (monthly & yearly) wage costs?

I want to know as I have an spreedsheet (shown below) on how much money I spend and this would be a great piece of information as currently both cost are not being calculated.

Thanks to all for your help!

[TABLE="width: 249"]
[TR]
[TD="colspan: 2"]Transfer Budget
[/TD]
[/TR]
[TR]
[TD]Initial
[/TD]
[TD]£30,000,000
[/TD]
[/TR]
[TR]
[TD]Transfers
[/TD]
[TD]£0
[/TD]
[/TR]
[TR]
[TD]Loyalty Bonus
[/TD]
[TD]£0
[/TD]
[/TR]
[TR]
[TD]Total Used
[/TD]
[TD]£0
[/TD]
[/TR]
[TR]
[TD]Total Remaining
[/TD]
[TD]£0
[/TD]
[/TR]
[/TABLE]

[TABLE="width: 736"]
[TR]
[TD="colspan: 3"]Total Costs (Players)
[/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD="colspan: 2"]1st season
[/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD][/TD]
[TD]1st team (W)
[/TD]
[TD]1st team (M)
[/TD]
[TD]1st team (Y)
[/TD]
[TD]Reserves (W)
[/TD]
[TD]Reserves (M)
[/TD]
[TD]Reserves (Y)
[/TD]
[/TR]
[TR]
[TD]Total Cost Orig
[/TD]
[TD]£1,251,000
[/TD]
[TD]£5,413,500
[/TD]
[TD]£64,446,000
[/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD]Total Cost New
[/TD]
[TD]£1,519,500
[/TD]
[TD]£6,643,500
[/TD]
[TD]£80,175,000
[/TD]
[TD]£387,000
[/TD]
[TD]£1,672,250
[/TD]
[TD]£20,190,000
[/TD]
[/TR]
[TR]
[TD]Total Cost New w R
[/TD]
[TD]£928,000
[/TD]
[TD]£4,035,000
[/TD]
[TD]£48,600,000
[/TD]
[TD]£317,000
[/TD]
[TD]£1,370,000
[/TD]
[TD]£16,530,000
[/TD]
[/TR]
[TR]
[TD]Reduction $
[/TD]
[TD]£323,000
[/TD]
[TD]£1,378,500
[/TD]
[TD]£15,846,000
[/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[TR]
[TD]Reduction %
[/TD]
[TD]34.81%
[/TD]
[TD]34.16%
[/TD]
[TD]32.60%
[/TD]
[TD][/TD]
[TD][/TD]
[TD][/TD]
[/TR]
[/TABLE]

 

[Scotty98TR]

They don't come out of either, so you should probably just add an "other" column...

 

[JPE09]

If both costs are apart from the others costs I mentioned, which is going to be the payment method for those I just mentioned? Are they going to be paid on a weekly basis or in a straight fee when the contract is signed?
Are they going to come out as straight loss in my balance once I have an yearly income?
Would any of you please provide a deeper explanation?

Thanks in advance!

 

[JPE09]

Is it possible for any of you to help me with my latest question please?

I really want to start this weekend with knowledge of how this will work into my finances.

I would really appreciate anybody´s help on this.

 

[Maleficus]

Is it possible for any of you to help me with my latest question please?

AFAIK Agent Fee is paid upfront, while loyalty bonus is paid monthly over the life of the contract. So for a £3m loyalty bonus on a 5-year contract it'd be £3m ÷ 60 months = £50k p/m. I believe the loyalty bonus is cancelled when a new contract is signed or when the player demands a transfer, but must still be honoured if the players is sold without having requested a move. I may be wrong, but that's what I've been led to believe. Hope that helps.

 

[JPE09]

Therefore, Agent Fees will come out from my transfer budget, right?

 

[gogogo golem]

Therefore, Agent Fees will come out from my transfer budget, right?

No.

 

[JPE09]

All in All,

Loyalty Bonus is paid monthly. It will be just another loss column in the balance but it´s not included in the player wages column.

While Agent Fees will be another separated cost (loss column) but it will be paid upfront from money in the balance and not from the transfer budget.

Would you please confirm if what I´m saying is correct?

Can you please tell me which is the advantage of giving more loyalty bonus & less weekly wage if both are paid over the life of the contract?

 

[Maleficus]

All in All,

Loyalty Bonus is paid monthly. It will be just another loss column in the balance but it´s not included in the player wages column.

While Agent Fees will be another separated cost (loss column) but it will be paid upfront from money in the balance and not from the transfer budget.

Would you please confirm if what I´m saying is correct?

Correct

Can you please tell me which is the advantage of giving more loyalty bonus & less weekly wage if both are paid over the life of the contract?

Well, obviously if you increase the loyalty bonus by £500k in order to reduce the weekly wage by the £10kp/w then after one year of the contract you'll have saved £520k in wages and therefore be £20k better off. After 2 years you'll be £540k better off, after 3 years £1.06m better off, and so on. Simple maths really, if the player agrees to it. Some agents can be very stubborn about getting exactly the terms they want...