04/10/2016

The summer transfer window has now closed in Europe and we continue to read tales (and sometime truths!) of huge transfer fees being offered and paid for players, in particular those coming to the Premier League from South America and Europe.

The only accurate evidence recording the amounts spent on player transfers are those revealed by FIFA’s Transfer Matching System (TMS). On any international transfer of a player TMS requires buying and selling clubs to enter over 30 types of data on each cross-border football transfer, including, fees and payment details, contract terms, player profiles, intermediary details and commissions paid.

There are also a few hidden costs which are sometimes overlooked, or not reported.

A player from South America can cost considerably more where the selling club needs to cover the levies, which are charged under national and federal laws of the particular country the player is leaving.

Take Argentina as an example, a country which exports many talented players around the world.

A player from Boca Juniors being sold to the Premier League for a fee of £20 million will attract levies in the region of 26% resulting in deductions, which the club must make, of £5.2m

In this example, 15% (£3m) will go to the player under a Collective Bargaining Agreement struck with the players union in 2009, 7% (£1.4m) in Social Security taxes, 2% (£400k) to the Argentine Football Federation, 0.5% (£100k) to the Players’ Union and up to 1.2% (£240k) in Stamp Duty!

Negotiations will be conducted accordingly by the Argentine club with no doubt an appropriate uplift in the asking price, let the buyer beware!

For further information please contact Tim Bailey on 01782 205000 or tim.bailey@beswicks.com