By Brian Wolff

It’s June, which means one thing above all else: the football transfer season is in full swing. Commonly referred to as “silly season,” for roughly 75 days or so frenzied rumors of big money moves and improbable signings will dominate all newspapers, media outlets and podcasts. As football supporters in America, the most comparable season is the NFL draft – but football transfer season is unlike any other and I commonly see a struggle to grasp the detailed intricacies of the market. So, if you’re interested in knowing what really goes on from boardrooms to beaches worldwide, read on in this 3 part series.

Part 1 – Examining the transfer, how they are made and player valuations.

Part 2 – The role of agents, and how they affect fees, negotiations and club selection.

Part 3 – Hammering out personal terms between new club and player.

What is a transfer?

In each country, a professional player is registered to that country’s league/FA. That registration is in turned owned by the club. Think of it like a membership card. Whereas this is a part of the personal contract in American sports, in football it is separate – and it is the document itself which costs clubs millions.

Say a player wants to move from Club A to Club B. He is registered to Club A, so a formal change in the registration document must take place. There are several ways to this transfer to happen:

1) Transfer deal – Club B pays a negotiated amount of money to Club A to secure the registration.

2) Buyout deal – Club B or the player himself buys out the amount of money on the registration

3) Bosman transfer – Named after Belgian Jean-Marc Bosman, the player’s contract is complete and he becomes a free agent registered to no club.

4) Legal rulings – Albeit rare, some court cases have ruled registrations to be invalid or incomplete.

Unlike American sports, transfers are almost always cash-for-player. In some circumstances, players will be included to lower a fee. In 2006, Chelsea signed Ashley Cole for 5 million pounds + William Gallas moving to Arsenal. In this case, the departing player must also agree personal terms with the new club.

How does the transfer process start?

There are multiple reasons a player will transfer while under contract – no longer wanted by the club, change of scenery, valuation in the market high, personal circumstances, etc. The process is mainly started by one of three ways:

1) The club initiates talks / receives offers from other clubs regarding the player in an attempt to sell him.

2) The player informally requests to be moved or formally does so via a transfer request document.

3) The player’s agent sees an opportunity to make more money/perks for himself and his client and “quietly” shops his player client to other clubs.

How is a transfer fee negotiated?

Like stocks, every player has a valuation relative to a number of factors; the most common factors are below:

1) Age: younger players are always coveted because there is more time to hit “peak form.”

2) Nationality: For the most part, stereotyping exists: English players are generally overvalued while American are undervalued.

3) Current club/league: if player is already in a top club/league, he is more “proven” and will command higher fees.

4) Years remaining on contract: The less remaining, the closer to a Bosman deal so a club will offer less of a fee. Case study, Ozil moving from Bremen to Madrid for only 12 million. Contrary to this, Van Persie moved for 20+.

5) Buyout clause: What is the stated buyout clause that, if met by player or club, releases the player instantly. Fees will generally be negotiated lower than the clause, as clauses especially in Spain are used as “auction reserves” to guarantee a certain return on investment.

6) Role: Attacking players and promising flair talents are always worth more to clubs than goalkeepers and defenders.

What is a buyout clause?

To elaborate on the above, a buyout clause is a set figure at which the contract and registration for a player can be bought out, making that player a free agent. The buyout can be initiated by a club or by player. Generally, buyout clauses act as “insurance” for clubs so that if they have to sell a player, a transfer fee will have to be negotiated in the neighborhood of the amount of the buyout clause. This is a common practice in Spain as ALL player contracts require buyout clauses.

Not two months ago, Bayern Munich indicated it would activate Borussia Dortmund player Mario Gotze’s release clause against the wishes of Dortmund. On the flip side, Napoli is willing to negotiate a fee close to or at the buyout clause of Uruguayan striker Edinson Cavani.

How are transfers paid?

Transfers are generally paid in installments to other clubs because of the large amount of money involved. In recent years as more wealthy owners have invested in or purchased clubs, a rising amount of deals have been paid up front. Clubs afforded this opportunity include Chelsea, Manchester City, Real Madrid and PSG. Interestingly enough, this practice hasn’t resulted in a discount. Chelsea has experienced transfer negotiations have carried on longer as selling clubs know Chelsea can afford to pay up front and more money for the player the club covets.

How is a transfer completed?

Once a fee is officially agreed and the paperwork in place, the deal is subject to personal terms and a medical for the player. Generally, personal terms are already done as they are carried out during this process, which I will explain in part 2 and part 3. Once the signatures are in place, the player is at his new club.

Third Party Ownership

No doubt you’ve heard about third party ownership. I will elaborate on this in the future but ignore for now as third party ownership is not allowed by the Premier League, and no clubs can send money to third parties to complete a transfer and register a player with the FA.

Stay tuned for Part 2 shortly!