dulpit wrote: »
I'm just wondering, was reading about various player transfers that are coming up this off-season and it got me thinking - do rugby players ever transfer for a fee? You never hear anything about a transfer fee, it usually happens that players transfer at end of their contracts - but can anyone enlighten me on more than this?
coco0981 wrote: »
Think it was reported that Leicester paid half a million transfer fee to sign George Ford
locum-motion wrote: »
But what is a transfer fee (in soccer terms) if not "buying out the contract"? Surely it's just another word for the same thing, isn't it?
Squidgy Black wrote: »
Not really, buying out the contract involves paying for the remainder of the value of the contract, so generally the players wages for the remainder of the contract.
With soccer teams it's a little bit different as it's seen that you're buying the player and not his contract. Hence the valuations of several millions etc.
prawnsambo wrote: »
Soccer clubs routinely make profits on players. That wouldn't be the case if it was just their contracts being bought out.
artanevilla wrote: »
Football clubs buy the players registration, not their contract.
The contract is between player and club. A club wanting to buy a player is in essence buying their registration, not their contract, how much that is worth is negotiated between the selling and buying club.
locum-motion wrote: »
The "contract", the "registration", whatever...
Either way, it is an "asset" that the selling club holds, and the buying club wishes to purchase. The "value" of that asset is just like the value of any asset (an ounce of gold, a barrel of oil, a car, a packet of Chewits...) and it will fluctuate according to supply and demand, and the perceived value of that asset to the seller and purchaser.
Squidgy says that buying out the contract is paying "the players wages for the remainder of the contract." But what if that is a relatively small amount of money, for a player who has (during the existing contract) reached a better level than people thought they might, and so the value of their wages for the remainder of the contract is much less than their future value as a player. In a case like that, the selling club isn't going to release the player from that contract for such a small sum, are they?