Ultimate guide to football transfers
Football transfers are a captivating aspect of the sport that captures the attention of fans, clubs, and players alike. The process of transferring a player from one club to another is complex and involves numerous steps, negotiations, and financial considerations. Let us take an in-depth look at how football transfers happen, covering the key steps, procedures, and fees involved, along with real-life examples to illustrate the intricacies of the process.
Step 1: Player Identification and Interest
The first step in the transfer process begins with identifying players who fit the buying club’s needs and goals. Clubs, scouts, and agents constantly monitor players’ performances, potential talents, and contract situations to find suitable targets. Once a player is identified, the buying club’s interest is communicated through formal or informal channels.
Step 2: Negotiating with the Selling Club
Negotiations between the buying club and the selling club are a critical phase in the transfer process. The clubs discuss the transfer fee, payment structure, and other terms of the deal. The transfer fee can vary widely based on factors like the player’s age, contract duration, skill level, and market demand. Additional clauses, such as sell-on fees and performance-related bonuses, may be included in the agreement.
Step 3: Personal Terms with the Player
Once the clubs agree on the transfer fee, the buying club negotiates personal terms with the player and their agent. This includes discussing the player’s salary, contract length, bonuses, and other incentives. The player’s preferences, lifestyle, and footballing ambitions are taken into account during these negotiations.
Step 4: Medical Examination
Before finalizing the transfer, the buying club typically conducts a medical examination of the player. The medical evaluates the player’s physical condition and identifies any existing or potential health issues. The results of the medical examination can influence the finalization of the deal or lead to further negotiations.
Example:
In 2018, FC Barcelona signed Ousmane Dembélé from Borussia Dortmund after conducting a medical examination and identifying a hamstring injury. This led to an adjustment in the initial transfer fee to include performance-related add-ons based on his recovery.
Step 5: Contract Signing and Registration
Once all parties reach an agreement, the player signs the contract with the buying club, making the transfer official. The contract is then registered with the relevant football governing bodies, such as the Football Association (FA) in England or the Spanish Football Federation (RFEF) in Spain. This allows the player to be eligible to play for the new club.
Step 6: Payment Structure
The transfer fee is usually paid in installments over an agreed period, depending on the clubs’ financial arrangements. This payment structure helps clubs manage their budgets and cash flow effectively.
Step 7: Player Announcement and Unveiling
After all the paperwork is completed and the transfer is officially registered, the buying club makes a formal announcement, unveiling the new signing to fans and the media. This is often accompanied by press conferences and media events.
Contractual elements in football transfers
The sell-on clause, buy-back clause, and performance-based add-ons are essential contractual elements in football transfers that offer various benefits to clubs and players. The sell-on clause allows selling clubs to profit from a player’s future success after they are sold, while the buy-back clause allows clubs to retain the option to reacquire a player they believe has potential. Performance-based add-ons incentivize players to perform well and achieve specific targets during their time with the buying club.
Sell-On Clause
The sell-on clause, also known as a sell-on percentage or a sell-on fee, is a contractual agreement between a selling club and a buying club that entitles the selling club to a percentage of any future transfer fee if the player is sold again by the buying club. It allows the selling club to benefit financially from the player’s future success and subsequent transfers.
Example:
In August 2017, Borussia Dortmund signed Jadon Sancho from Manchester City for a reported transfer fee of around £8 million. As part of the transfer deal, Manchester City negotiated a sell-on clause to protect their interests in the highly talented young winger.
Over the next few years, Jadon Sancho’s performances at Borussia Dortmund were nothing short of exceptional. He established himself as one of the most promising young players in European football and attracted attention from top clubs across the continent.
In August 2021, after four successful seasons at Borussia Dortmund, Jadon Sancho’s time in the Bundesliga came to an end when he secured a move back to the English Premier League. Manchester United signed Sancho for a transfer fee reported to be around £73 million.
Due to the sell-on clause inserted by Manchester City in the initial transfer to Borussia Dortmund, they were entitled to receive 15 percent of the profit involving Jadon Sancho. They thus generated an additional revenue of about £9.75 million. Which turned out to be more than the transfer fee they had received.
Buy-Back Clause
The buy-back clause, also known as a repurchase clause or a buy-back option, is an agreement included in a player’s transfer deal that gives the selling club the option to reacquire the player for a predetermined fee within a specified period. This clause is typically included when a club believes the player has significant potential but wants to sell them temporarily while retaining the option to bring them back in the future.
Example:
In 2014, Real Madrid sold Alvaro Morata to Juventus for around €20 million. As part of the deal, Real Madrid inserted a buy-back clause, allowing them to reacquire the player in the future if they wished.
After two successful seasons at Juventus, Real Madrid exercised their buy-back option in 2016 to bring Alvaro Morata back to the club. They paid Juventus a fee reported to be around €30 million to reacquire the Spanish striker.
The buy-back clause allowed Real Madrid to retain control over the player’s future and brought Morata back to the club, where he contributed to their attacking force.
Performance-Based Add-Ons
Performance-based add-ons, also known as bonus clauses, are incentives included in a player’s transfer deal based on their individual or team performance. These add-ons are triggered when the player achieves specific milestones, such as winning trophies, playing a certain number of matches, or achieving certain individual performance targets.
Example:
In January 2020, Manchester United signed Bruno Fernandes from Sporting Lisbon for an initial fee of around €55 million. As part of the deal, the transfer agreement included several performance-based add-ons based on the player’s achievements at the club.
One of the performance-based add-ons was related to Fernandes’ appearances for Manchester United. The agreement stipulated that United would pay an additional €5 million after Fernandes made 25 appearances for the club.
In a short period, Bruno Fernandes became a pivotal player for Manchester United, reaching 25 appearances quickly. As a result, the club triggered the performance-based add-on and paid an extra €5 million to Sporting Lisbon.
Multi-faceted process
Football transfers are a multi-faceted process that involves meticulous planning, negotiations, and financial considerations. From identifying the right player to unveiling the new signing. Every step of the transfer journey plays a crucial role in shaping a player’s future and a club’s success. The examples provided showcase the diverse range of transfer fees, payment structures, and player negotiations. These define the complex world of football transfers.
