How much do players make from transfer fees?

The act of one team selling a player to another team is called a “transfer” and the fee that is paid is called a “transfer fee.” Although this fee is primarily what one club is paying another club, a portion of the fee (usually between 5-10\%) goes to the player, which he splits with his agent.

What determines the price of a football player?

The primary position of the player on the field is a determining factor on the market value of the footballer. Players from different positions have different criteria for judging their market value but, in general, the higher the player’s position on the field, the more expensive he will be.

How do football clubs pay for transfers?

Usually the buying club pays the selling club an amount of money as compensation for the selling club losing the player and their services, with this being referred to as a ‘transfer fee’. In some cases clubs might offer another player in exchange for the one they’re trying to buy, perhaps with money on top of that.

How do clubs value players?

Generally speaking, players are valued in the same way as any other asset. Key factors include the player’s age, playing position, nationality, playing characteristics, and weighted performance criteria. Similarities can then be drawn with comparable players for whom transactions have already taken place in the market.

Who determines the market value of a player?

Who gets transfer fee?

Professional players sign contracts with clubs for a fixed term of up to five years. If a player transfers before their contract expires, the new club pays compensation to the old one. This is known as a transfer fee.

Where do transfer fees go?

A negotiated transfer fee is agreed financial compensation paid from an interested club, to the club that possesses the player’s exclusive contracted playing rights.

How are transfer fees capitalized in football?

Currently good players cost a huge amount of money and in order to balance the books of the clubs when a player is bought, his transfer fee is capitalized on the balance sheet and is amortized over the length of his contract. So the whole transfer fee is spread over the length of the contract and amortization is made yearly.

How much can a football club profit from a transfer fee?

As a result, the player who was bought two years ago for 50 million and now sold for 35 million can be made an accounting profit of 5 million on his transfer fee. However, if you only look at the transfer fees it looks like the club made a 15 million euros loss. The club can put over 15 million profit improvement in their accounts after that.

Why do football clubs use accounting and amortization?

These rich clubs have to use accounting and amortization in order to invest more money in new players. Currently good players cost a huge amount of money and in order to balance the books of the clubs when a player is bought, his transfer fee is capitalized on the balance sheet and is amortized over the length of his contract.

What is the highest fee ever paid for a soccer transfer?

The 222 million euro transfer of Brazilian player Neymar from Barcelona to Paris Saint-Germain (PSG) in August 2017 is the all-time highest fee for a soccer transfer. The transfers of Philippe Coutinho to Barcelona and Kylian Mbappe to PSG are second and third in the list respectively.