Explain Football tranfer fees?
Discussion
james_tigerwoods said:
I know nothing about Football transfer fees and I'm confused about what Ronaldo's £80m fee means - is that what he'll get paid, is that what Manchester united get......
I'm not into football really, but can someone explain it to me please?
JTW
That's what Real are paying to United in exchange for buying out the remainder of his 5 year contract.I'm not into football really, but can someone explain it to me please?
JTW
Transfer fees have been spiraling out of control in recent years - there is no way any single player can be worth as much as the whole Newcastle United business!
Alfa_75_Steve said:
james_tigerwoods said:
I know nothing about Football transfer fees and I'm confused about what Ronaldo's £80m fee means - is that what he'll get paid, is that what Manchester united get......
I'm not into football really, but can someone explain it to me please?
JTW
That's what Real are paying to United in exchange for buying out the remainder of his 5 year contract.I'm not into football really, but can someone explain it to me please?
JTW
Transfer fees have been spiraling out of control in recent years - there is no way any single player can be worth as much as the whole Newcastle United business!
So they pay £80m to United, plus whatever they pay him which would be, all together, £90-100m?
the transfer fee is what they pay to Utd (though not necessairly always in one lump sum)
they then pay ronaldos wages seperatley which is probably the best part of a million or 2 a month.
real madrid are not toally stupid though, they will get a lot if not all (plus profit) back through merchandising (shirt sales etc)
transfer fees have been rising last few eyars as some very rich owners (started with chelsea mainly) who have billions started splashing the cash and putting transfer fees up.
they then pay ronaldos wages seperatley which is probably the best part of a million or 2 a month.
real madrid are not toally stupid though, they will get a lot if not all (plus profit) back through merchandising (shirt sales etc)
transfer fees have been rising last few eyars as some very rich owners (started with chelsea mainly) who have billions started splashing the cash and putting transfer fees up.
Real Madrid have some very corrupt links with the Spanish government - involving dodgy sale and leaseback and subsequent buy-back deals on property Real own / sell / lease / buy back from the government and also have had hundreds of millions of loans written off over the years.
The Spanish see Real as a national asset and will do anything in their power to maintain their status as the most successful club side in the world.
The Spanish see Real as a national asset and will do anything in their power to maintain their status as the most successful club side in the world.
Alfa_75_Steve said:
Real Madrid have some very corrupt links with the Spanish government - involving dodgy sale and leaseback and subsequent buy-back deals on property Real own / sell / lease / buy back from the government and also have had hundreds of millions of loans written off over the years.
The Spanish see Real as a national asset and will do anything in their power to maintain their status as the most successful club side in the world.
Is that even EU-Legal?The Spanish see Real as a national asset and will do anything in their power to maintain their status as the most successful club side in the world.
Alfa_75_Steve said:
Real Madrid have some very corrupt links with the Spanish government - involving dodgy sale and leaseback and subsequent buy-back deals on property Real own / sell / lease / buy back from the government and also have had hundreds of millions of loans written off over the years.
The Spanish see Real as a national asset and will do anything in their power to maintain their status as the most successful club side in the world.
You're not allowed to say things like that, at least in the eyes of one poster on here who will not have it that Real are anything other than whiter than the shirts on their back.The Spanish see Real as a national asset and will do anything in their power to maintain their status as the most successful club side in the world.
However, most people share the view that they do get at least some degree of generous treatment due to their position as an institution (as to a lesser degree do Barcelona). The Madrid training ground sale will never, ever look anything other than suspect and let's face it, no head honcho of a bank is going to pull the plug on RM for slow or non payment of debts, especially when he is getting some 'advice & persuasion' from the great and good.
I do find it interesting that everyone considers the debts of Premier League clubs to be excessive (even though for 3 of the big 4 they are mainly around leveraged ownership and ground related expenses, Chelsea's debt being more about what is advantageous to Mr Abramovic) and yet a team like Madrid can run up debts of up to £500m or more without the issues of ground or ownership inflating the issue and nobody bats an eyelid.
http://www.guardian.co.uk/football/2009/jun/16/rea...
Then of course there is the basket case that is Valencia
As someone who has no clue about football, illegal issues aside, my thinking is that as long as they are using private money, I couldn't care less how much they paid. If they see it as an investment that will reap rewards in the future, then it's no worse than one company buying up rival's subsidiary company in the hope of making big profit later. Good luck to them.
james_tigerwoods said:
So they pay £80m to United, plus whatever they pay him which would be, all together, £90-100m?
Keep going north in terms of total value.It is probably £80m, plus a few million in agents fees, plus £10m per year NET to Ronaldo in wages (with supposedly a 25% pa increase built in). A quick calculation would suggest a contract lifetime cost of close to £200m at current values.
Now add at least another £100m for David Villa and somewhere in the £100 - £150m for Kaka and possibly Frank Ribery and who knows who else. Even after flogging off the rest of their squad for minimal amounts (and replacing them with kids), that's still rather a lot of dough to come out of the piggy bank.
ShadownINja said:
As someone who has no clue about football, illegal issues aside, my thinking is that as long as they are using private money, I couldn't care less how much they paid. If they see it as an investment that will reap rewards in the future, then it's no worse than one company buying up rival's subsidiary company in the hope of making big profit later. Good luck to them.
Surely it's false economy these days as players never seem to stick it out that long at a club before falling to the mighty dollar....ClintonB said:
james_tigerwoods said:
So they pay £80m to United, plus whatever they pay him which would be, all together, £90-100m?
Keep going north in terms of total value.It is probably £80m, plus a few million in agents fees, plus £10m per year NET to Ronaldo in wages (with supposedly a 25% pa increase built in). A quick calculation would suggest a contract lifetime cost of close to £200m at current values.
Now add at least another £100m for David Villa and somewhere in the £100 - £150m for Kaka and possibly Frank Ribery and who knows who else. Even after flogging off the rest of their squad for minimal amounts (and replacing them with kids), that's still rather a lot of dough to come out of the piggy bank.
How on earth do big clubs thrown this money about and stay in business?
Think of the income generated by being a top club and having a team of desirable top players.
By having a top team capable of winnning everythign creates a hell of alot of money.
Just being in the Champions League is worth approx £20m to a team.
Winning your home league is worth £Xm
The amount of marketing that can be done by having a team full of superstars is ridiculous, you can take your team around the world in the summer playing in 2 bit sponsership tropheys and raking in a fortune.
A Real Madrid or Barcelona shirt retails for approx £60ish. There are a ahell of alot of people willing to buy these shirts......
A ground that hold at least 60k people every week or so for half the year all paying i guess at least £30 a ticket per week, also generates alot of money - people are more willing to come and see you play if you're winning and have the players they want to see.
The amount fo money a winning football team can generate is ridiculous.
Of course Real are as a bent as a nine bob note but thats another story......
By having a top team capable of winnning everythign creates a hell of alot of money.
Just being in the Champions League is worth approx £20m to a team.
Winning your home league is worth £Xm
The amount of marketing that can be done by having a team full of superstars is ridiculous, you can take your team around the world in the summer playing in 2 bit sponsership tropheys and raking in a fortune.
A Real Madrid or Barcelona shirt retails for approx £60ish. There are a ahell of alot of people willing to buy these shirts......
A ground that hold at least 60k people every week or so for half the year all paying i guess at least £30 a ticket per week, also generates alot of money - people are more willing to come and see you play if you're winning and have the players they want to see.
The amount fo money a winning football team can generate is ridiculous.
Of course Real are as a bent as a nine bob note but thats another story......
We know Abromovich is bankrolling Chelsea, but who is financing Real, who provides the cash and what of their debt?
How is it all these clubs have such staggering debt, but noone to call it in? If a club owes millions and will keep acruing that debt, who is throwing that good money after bad?
How is it all these clubs have such staggering debt, but noone to call it in? If a club owes millions and will keep acruing that debt, who is throwing that good money after bad?
the ronaldo deal figures are slightly mis-reported as they are based on final figures at the end of the five year deal.
in reality it looks a bit like this:
year transfer salary
1 £25m £200,000pm
2 £20m £250,000pm
3 £15m £300,000pm
4 £10m £400,000pm
5 £10m £500,000pm
thus man utd dont get £80m in one lump sum and ronaldos wage isnt £500,00k from the first day. when ronaldo is sold before that 5 year period, which will inevitibly happen, man utd will get the remainig lump sum when the transfer takes place
in reality it looks a bit like this:
year transfer salary
1 £25m £200,000pm
2 £20m £250,000pm
3 £15m £300,000pm
4 £10m £400,000pm
5 £10m £500,000pm
thus man utd dont get £80m in one lump sum and ronaldos wage isnt £500,00k from the first day. when ronaldo is sold before that 5 year period, which will inevitibly happen, man utd will get the remainig lump sum when the transfer takes place
pablo said:
the ronaldo deal figures are slightly mis-reported as they are based on final figures at the end of the five year deal.
in reality it looks a bit like this:
year transfer salary
1 £25m £200,000pm
2 £20m £250,000pm
3 £15m £300,000pm
4 £10m £400,000pm
5 £10m £500,000pm
thus man utd dont get £80m in one lump sum and ronaldos wage isnt £500,00k from the first day. when ronaldo is sold before that 5 year period, which will inevitibly happen, man utd will get the remainig lump sum when the transfer takes place
I think Ronaldo will be a bit miffed if his wage is only between £200k and £500k per monthin reality it looks a bit like this:
year transfer salary
1 £25m £200,000pm
2 £20m £250,000pm
3 £15m £300,000pm
4 £10m £400,000pm
5 £10m £500,000pm
thus man utd dont get £80m in one lump sum and ronaldos wage isnt £500,00k from the first day. when ronaldo is sold before that 5 year period, which will inevitibly happen, man utd will get the remainig lump sum when the transfer takes place
The figure I saw was £185k per week for year one and then 25% increase pa from there. This of course will be net so the gross figure is something like 15% on top (I think I've read that somewhere re the tax for footballers in Spain if not nationals & in the first 5 years, something of a bugbear for PL clubs who have to cope with 50%).
I wonder what is happening with his image rights. Real have in the past had players divvying up such income to the club, which then gets distributed amongst the squad, but if IIRC, Ronaldo's situation might be a bit different.
ClintonB said:
pablo said:
the ronaldo deal figures are slightly mis-reported as they are based on final figures at the end of the five year deal.
in reality it looks a bit like this:
year transfer salary
1 £25m £200,000pm
2 £20m £250,000pm
3 £15m £300,000pm
4 £10m £400,000pm
5 £10m £500,000pm
thus man utd dont get £80m in one lump sum and ronaldos wage isnt £500,00k from the first day. when ronaldo is sold before that 5 year period, which will inevitibly happen, man utd will get the remainig lump sum when the transfer takes place
I think Ronaldo will be a bit miffed if his wage is only between £200k and £500k per monthin reality it looks a bit like this:
year transfer salary
1 £25m £200,000pm
2 £20m £250,000pm
3 £15m £300,000pm
4 £10m £400,000pm
5 £10m £500,000pm
thus man utd dont get £80m in one lump sum and ronaldos wage isnt £500,00k from the first day. when ronaldo is sold before that 5 year period, which will inevitibly happen, man utd will get the remainig lump sum when the transfer takes place
The figure I saw was £185k per week for year one and then 25% increase pa from there. This of course will be net so the gross figure is something like 15% on top (I think I've read that somewhere re the tax for footballers in Spain if not nationals & in the first 5 years, something of a bugbear for PL clubs who have to cope with 50%).
I wonder what is happening with his image rights. Real have in the past had players divvying up such income to the club, which then gets distributed amongst the squad, but if IIRC, Ronaldo's situation might be a bit different.
james_tigerwoods said:
ShadownINja said:
As someone who has no clue about football, illegal issues aside, my thinking is that as long as they are using private money, I couldn't care less how much they paid. If they see it as an investment that will reap rewards in the future, then it's no worse than one company buying up rival's subsidiary company in the hope of making big profit later. Good luck to them.
Surely it's false economy these days as players never seem to stick it out that long at a club before falling to the mighty dollar....james_tigerwoods said:
So even if he leaves Real, Real will continue to say United then?
Accounting must be a bloody mess...
Real 'should' pay up in full, but will get around it as many teams do, They are still paying the drip for Van Nistelrooy.Accounting must be a bloody mess...
Guy over the road is an accountant at Old Trafford, he says since the yanks have taken over the jobs a nightmare, beforehand they were in the black and things were flexible, now everything has to be spot on and before deadline due to the massive interest they are paying on the debt.
pablo said:
the ronaldo deal figures are slightly mis-reported as they are based on final figures at the end of the five year deal.
in reality it looks a bit like this:
year transfer salary
1 £25m £200,000pm
2 £20m £250,000pm
3 £15m £300,000pm
4 £10m £400,000pm
5 £10m £500,000pm
thus man utd dont get £80m in one lump sum and ronaldos wage isnt £500,00k from the first day. when ronaldo is sold before that 5 year period, which will inevitibly happen, man utd will get the remainig lump sum when the transfer takes place
I'm certain Utd have said that it must be concluded by 30 June and transfer fee is one payment, not over 5 years.in reality it looks a bit like this:
year transfer salary
1 £25m £200,000pm
2 £20m £250,000pm
3 £15m £300,000pm
4 £10m £400,000pm
5 £10m £500,000pm
thus man utd dont get £80m in one lump sum and ronaldos wage isnt £500,00k from the first day. when ronaldo is sold before that 5 year period, which will inevitibly happen, man utd will get the remainig lump sum when the transfer takes place
Vee said:
pablo said:
the ronaldo deal figures are slightly mis-reported as they are based on final figures at the end of the five year deal.
in reality it looks a bit like this:
year transfer salary
1 £25m £200,000pm
2 £20m £250,000pm
3 £15m £300,000pm
4 £10m £400,000pm
5 £10m £500,000pm
thus man utd dont get £80m in one lump sum and ronaldos wage isnt £500,00k from the first day. when ronaldo is sold before that 5 year period, which will inevitibly happen, man utd will get the remainig lump sum when the transfer takes place
I'm certain Utd have said that it must be concluded by 30 June and transfer fee is one payment, not over 5 years.in reality it looks a bit like this:
year transfer salary
1 £25m £200,000pm
2 £20m £250,000pm
3 £15m £300,000pm
4 £10m £400,000pm
5 £10m £500,000pm
thus man utd dont get £80m in one lump sum and ronaldos wage isnt £500,00k from the first day. when ronaldo is sold before that 5 year period, which will inevitibly happen, man utd will get the remainig lump sum when the transfer takes place
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