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sylofox

Maguire to Man Utd / Man City

By sylofox, in Transfer Talk

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TaggertvsWise

TaggertvsWise

Posted
Posted
5 minutes ago, hackneyfox said:

So if we bought a player for £30m with 10% sell on clause and sold him for £33m three years later we'd actually lose money?

Can you post a link supporting your claim?

 

Depends how long the original contract is and also what the player’s worth is at the 3 year mark and the other contributions to the club he has made. But in theory yes if we invested 30 mill into a 5 year contract. 

 

Hard to provide a straight answer though as naturally these hypothetical situations have a lot of moving parts .  With regards a link, I don’t really understand the need for one. It’s just economics in the context of a football contract. Listen to Simon Jordan on TalkSPORT, he is often illustrating points like this far better than I ever could.

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Rusko187

Rusko187

Posted
Posted
12 hours ago, StevieB said:

??

Screenshot_20190620-205343.jpg

I know it's nonsense and fake but actually it's about the only deal I'd take aside from a large sum of money.

 

Prefer to keep Harry but recognise he will want to further his career, we just need to get the best deal out of the situation for us.

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turtmcfly

turtmcfly

Posted
Posted
10 hours ago, yorkie1999 said:

We paid 17 million for him, if we sell him for 65 million minus 15% , that’s 65 - 9.75 which is 55.25 million, minus the 17 equals 38.25 million profit, which just about covers YT, as long as we can keep Wes going for a few more years, we’re rockin.

As per the post you replied to, I don't think this is quite right...

 

I presume the sell-on is based on the profit not the sale amount, so would be (using your numbers) 15% of 48 million (7.2 mill) - taking the actual profit past the 40 million mark. 

 

I know in the grand scheme of things 2.5 million isn't that much, but that's just a function of the low initial fee and the huge gain we'd have made in this case.

 

 

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Buce

Buce

Posted
Posted
9 hours ago, murphy said:

Disappointing to see so many of us that don't rate Harry that highly.  There's no better CB on the ball in my opinion.

 

You don't know what you've got til it's gone as Joni Mitchell said.

 

£65m is not enough.  I would feel like we've been mugged again if we got any less than £75m. 

 

What!? :o

 

They're gonna sell Slab head and waste the money on a car park?

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volpeazzurro

volpeazzurro

Posted
Posted (edited)

Feeling slightly relieved. Apparently he's now been pencilled in for a medical. Had they used ink I'd have been more inclined to worry. Perhaps we should send them a rubber from a Leicester City pencil case set in the club shop?

Edited by volpeazzurro
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bmt

bmt

Posted
Posted
47 minutes ago, hackneyfox said:

30,000,000 -29,670,000

 

We've lost money.

That's what you asked wasn't it? If you buy a player for 30 mil plus 10% sell on clause you lose 330k. I wasn't sure how it was linked to what the post you quoted was saying though. He was saying if you buy a player for 30 mil on a 5 year contract, and sell him for 33 million with a 10% sell on fee after three years, it would be more accurate to say you have gained value:

 

30 million / 5 years = 6 million value per year (amortization rate)

3 years value = 18 million

sell on clause = 3.3 million

Transfer fee + playing time value - Initial fee - clause = 51 mil - 33.3 mil = 17.7 mil

 

So even though its a slight financial loss in terms of value it would be a good investment.

 

 

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Camberwell Fox

Camberwell Fox

Posted
Posted
14 hours ago, weller54 said:

Where have you understood that from then? 

John Percy.

 

we valued him at £80 million last summer prior to his England performances and his gradual improvement this season just gone.

 

its therefore very reasonable to value him in today’s market at £90-£100 million.

 

i don’t believe either Manchester clubs will meet that valuation.

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yorkie1999

yorkie1999

Posted
Posted
5 minutes ago, Camberwell Fox said:

John Percy.

 

we valued him at £80 million last summer prior to his England performances and his gradual improvement this season just gone.

 

its therefore very reasonable to value him in today’s market at £90-£100 million.

 

i don’t believe either Manchester clubs will meet that valuation.

Not unless Mahrez is part of the deal.

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turtmcfly

turtmcfly

Posted
Posted (edited)
27 minutes ago, bmt said:

That's what you asked wasn't it? If you buy a player for 30 mil plus 10% sell on clause you lose 330k. I wasn't sure how it was linked to what the post you quoted was saying though. He was saying if you buy a player for 30 mil on a 5 year contract, and sell him for 33 million with a 10% sell on fee after three years, it would be more accurate to say you have gained value:

 

30 million / 5 years = 6 million value per year (amortization rate)

3 years value = 18 million

sell on clause = 3.3 million

Transfer fee + playing time value - Initial fee - clause = 51 mil - 33.3 mil = 17.7 mil

 

So even though its a slight financial loss in terms of value it would be a good investment.

 

 

 

Getting to the point where I wonder if there's a FT 'in joke' about sell-on clauses I'm not getting!

 

 

Again... the above is based on the sell-on clause being a % of the final transfer fee. I'm sure it would usually be the profit it's applied to. So in the above example the fee would be 300,000 (10% of the 3 million profit)

 

A quick Google gives the example below for Mo Salah. The other examples in the piece are based on players coming from e.g. a club's academy, so that the tranfer fee was 'all profit' and thus it didn't matter how the sell-on clause was applied

 

https://www.telegraph.co.uk/football/2017/07/04/10-lucrative-football-sell-on-clauses2/mohamed-salah0/


'Mindful that Salah could yet blossom into an elite performer, Chelsea reportedly insisted on 10% of any future profit that the Serie A club made on him. In stepped Liverpool with a £39m bid, and Roman Abramovich could be happy with his day's work.'

 

Edited by turtmcfly
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mozartfox

mozartfox

Posted
Posted
26 minutes ago, bmt said:

That's what you asked wasn't it? If you buy a player for 30 mil plus 10% sell on clause you lose 330k. I wasn't sure how it was linked to what the post you quoted was saying though. He was saying if you buy a player for 30 mil on a 5 year contract, and sell him for 33 million with a 10% sell on fee after three years, it would be more accurate to say you have gained value:

 

30 million / 5 years = 6 million value per year (amortization rate)

3 years value = 18 million

sell on clause = 3.3 million

Transfer fee + playing time value - Initial fee - clause = 51 mil - 33.3 mil = 17.7 mil

 

So even though its a slight financial loss in terms of value it would be a good investment.

 

 

Can some one please calculate this for Slimani on the assumption Sporting give us a fiver for him.

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murphy

murphy

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16 minutes ago, yorkie1999 said:

Not unless Mahrez is part of the deal.

The last thing we need is that cry baby pouting around the place thinking he's slumming it and doing us a favour.

 

No thanks.  Never look back and no more toe-curling 'sweet prince' posts. 

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bmt

bmt

Posted
Posted
1 minute ago, turtmcfly said:

 

Getting to the point where I wonder if there's a FT 'in joke' about sell-on clauses I'm not getting!

 

 

Again... the above is based on the sell-on clause being a % of the final transfer fee. I'm sure it would usually be the profit it's applied to. So in the above example the fee would be 300,000 (10% of the 3 million profit)

 

A quick Google gives the example below for Mo Salah. The other examples in the piece are based on players in e.g. coming from e.g. a club's academy, so that the tranfer fee was 'all profit' and thus it didn't matter how the sell-on clause was applied

 

https://www.telegraph.co.uk/football/2017/07/04/10-lucrative-football-sell-on-clauses2/mohamed-salah0/


'Mindful that Salah could yet blossom into an elite performer, Chelsea reportedly insisted on 10% of any future profit that the Serie A club made on him. In stepped Liverpool with a £39m bid, and Roman Abramovich could be happy with his day's work.'

 

 

I'm just talking from old Football Manager experience but I think unless stated it's on the transfer fee not on profit. It's worth noticing that this gives clubs selling young players for a fee which they believe to be low (but where the player wants to leave to a bigger club) a bit of protection. 

 

Eg. A Club in League One have a decent 22 year old player who was decent in League One but unproven elsewhere, and Man United want to buy him for 10 mil. If they give a sell on fee on transfer fee of 25%, even if the player turns out to only be okay and moves to say Brighton the next season for 10 million, they get a decent extra payout (2.5 million). If it's only on profit they receive nothing. 

 

Example in media:

https://www.dailystar.co.uk/sport/football/627160/Premier-League-transfers-sell-on-clauses-profit-sportgalleries

"The Burnley centre-back moved to the Toffees for a fee of £30m yesterday.

And the Red Devils will pocket £7.5m of the cash after Louis van Gaal negotiated a 25 per cent sell-on clause with the Turf Moor club when he sold Keane." 

 

There are some sell-on fees which are just on profit, but they tend to be stated.

 

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