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Transfer fees and FFP rules.
Posted by High Town Hatter on 11/4/2024, 20:30:42
Surely all this nonsense can easily be stopped by adopting the following rules.
Club A wants to buy a player from club B. A transfer fee is agreed between said clubs and personal terms agreed between club A and the player from club B.
Now this is where I feel what should happen next. Whatever the transfer fee is it HAS to be paid by club A to club B immediately and in one lump sum. None of this bit by bit over a period of months or possibly years, and the player cannot be registered to play for club A until proof is received that the money has been paid in full to club B and verified to that effect by the Prem/EFL.
Apart from anything else that alone would surely bring down the ridiculous transfer fees we hear about and make the playing field a damn sight more level than it currently is.
Any club found guilty of circumnavigating the immediate payment of the transfer fee to the selling club would be dropped down a division.
If that happens then surely there is much less chance of clubs putting themselves at a financial risk and thereby not infringing the FFP rules.
This wouldn't do anything much in relation to FFP rules. FFP is a profit measure, but what you have suggested would be a cash flow measure.
Perhaps it would apply downward pressure on transfer fees, but I think you're trying to solve a problem that isn't there. Insisting on immediate payment would make cash flow management more difficult generally as the in and out flows will be larger.
Football debt isn't also generally a problem as there are strict rules on making payments e.g. a club can't exit administration without paying all football debts. Late payment is also taken seriously as the points deduction for Sheff Utd shows. This seems to be unusual though - I can't remember other actions against clubs with overdue debts in the past. If a big club were to go pop it would be a problem, but hasn't happened yet.
I think it helps both clubs if the transfer fee is staggered. For instance if we buy a player from a lower division for say £5 million and agree to pay them £1.25 million over the next four years they can be assured that income is going to balance the books a bit better.
Surely it would help the lower club to balance their books better if they received the £5million in one dollop.
Really don't understand the point of your argument. If the buying club can't afford to pay up top, presumably because they don't have the money, then it would encourage transfer fees to become more realistic.
Just as we wouldn't be able to buy Haarland and probably neither would any other club looking at him so the transfer fee would come down to a figure more affordable to some clubs.
I’m not saying the buying club can’t afford it. What I’m saying is it’s better for both parties for it to be staggered over a few seasons. Quite rightly Sheffield United have been deducted points for not keeping up payments. If you are trying to be a sustainable club, I can’t see any reason why you wouldn’t want that payment over a period of time as a piece of mind it’s coming in.
Because surely if you sell you get all the cash and can invest immediately beit in a transfer signing of their own or perhaps even some sort of financial package and gain interest rather than the buyer still holding on to those funds.
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