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How do euro soccer contracts work?

Mo0o

Lifer
Looking at the massive contract transfers to Real Madrid, it seems like they pay other clubs for the transfer of players. What about the players salaries themselves, which im guessing has got to be pretty astronomical as well. Is that factored in to the transfer fee? How does it all work

edit... i didnt google it, i'd rather just have someone explain it so i can ask followups.
 
You negotiate a transfer fee to the club who has the player you want, sort of like when MLB teams draft Japanese players and they gotta pay a fee to get him over here.

Then you gotta negotiate a contract with the player. If that works out, you pay the fee.

If the player doesn't agree to the contract, then you don't pay the fee. Sometimes teams (like AC Milan did with Kaka) will make an opposing team pay a fee if they DON'T reach an agreement with the player. Guess that's for wasting their time.
 
Originally posted by: scorpious
You negotiate a transfer fee to the club who has the player you want, sort of like when MLB teams draft Japanese players and they gotta pay a fee to get him over here.

Then you gotta negotiate a contract with the player. If that works out, you pay the fee.

If the player doesn't agree to the contract, then you don't pay the fee. Sometimes teams (like AC Milan did with Kaka) will make an opposing team pay a fee if they DON'T reach an agreement with the player. Guess that's for wasting their time.

How much do top player contracts usually come out to? 5 yr 150 mil range?
 
From what I've seen, soccer contracts aren't as ridiculous at pro contracts here in the US. I think Leo Messi makes about £8m per year ($13-14m US - or does he make 8?... I forget!), and he makes maybe the 3rd or 4th most in all of football.
 
Originally posted by: palswim
From what I've seen, soccer contracts aren't as ridiculous at pro contracts here in the US. I think Leo Messi makes about £8m per year ($13-14m US - or does he make 8?... I forget!), and he makes maybe the 3rd or 4th most in all of football.

Wow that's pretty low

I guess I'm just blown away by the crazy transfer fees
 
Originally posted by: Mo0o
Originally posted by: palswim
From what I've seen, soccer contracts aren't as ridiculous at pro contracts here in the US. I think Leo Messi makes about £8m per year ($13-14m US - or does he make 8?... I forget!), and he makes maybe the 3rd or 4th most in all of football.

Wow that's pretty low

I guess I'm just blown away by the crazy transfer fees

lol $13m salary is low?
 
Originally posted by: JS80
Originally posted by: Mo0o
Originally posted by: palswim
From what I've seen, soccer contracts aren't as ridiculous at pro contracts here in the US. I think Leo Messi makes about £8m per year ($13-14m US - or does he make 8?... I forget!), and he makes maybe the 3rd or 4th most in all of football.

Wow that's pretty low

I guess I'm just blown away by the crazy transfer fees

lol $13m salary is low?

it is for a star athlete.
 
Originally posted by: Inspector Jihad
Originally posted by: JS80
Originally posted by: Mo0o
Originally posted by: palswim
From what I've seen, soccer contracts aren't as ridiculous at pro contracts here in the US. I think Leo Messi makes about £8m per year ($13-14m US - or does he make 8?... I forget!), and he makes maybe the 3rd or 4th most in all of football.

Wow that's pretty low

I guess I'm just blown away by the crazy transfer fees

lol $13m salary is low?

it is for a star athlete.

So you know the economics of euro soccer? Or the profitability of its teams?
 
Originally posted by: JS80
Originally posted by: Inspector Jihad
Originally posted by: JS80
Originally posted by: Mo0o
Originally posted by: palswim
From what I've seen, soccer contracts aren't as ridiculous at pro contracts here in the US. I think Leo Messi makes about £8m per year ($13-14m US - or does he make 8?... I forget!), and he makes maybe the 3rd or 4th most in all of football.

Wow that's pretty low

I guess I'm just blown away by the crazy transfer fees

lol $13m salary is low?

it is for a star athlete.

So you know the economics of euro soccer? Or the profitability of its teams?

do you?
 
Originally posted by: Aharami
Originally posted by: JS80
Originally posted by: Inspector Jihad
Originally posted by: JS80
Originally posted by: Mo0o
Originally posted by: palswim
From what I've seen, soccer contracts aren't as ridiculous at pro contracts here in the US. I think Leo Messi makes about £8m per year ($13-14m US - or does he make 8?... I forget!), and he makes maybe the 3rd or 4th most in all of football.

Wow that's pretty low

I guess I'm just blown away by the crazy transfer fees

lol $13m salary is low?

it is for a star athlete.

So you know the economics of euro soccer? Or the profitability of its teams?

do you?

No but I'm assuming that most teams lose money just like baseball teams knowing how socialist euro countries are. And it's funny how AT asshats say shit like "wow $13m so low compared to Shaq making $20m."
 
Originally posted by: JS80
No but I'm assuming that most teams lose money just like baseball teams knowing how socialist euro countries are. And it's funny how AT asshats say shit like "wow $13m so low compared to Shaq making $20m."

American professional sports leagues are far more "socialist" than European.
 
Originally posted by: MrChad
Originally posted by: JS80
No but I'm assuming that most teams lose money just like baseball teams knowing how socialist euro countries are. And it's funny how AT asshats say shit like "wow $13m so low compared to Shaq making $20m."

American professional sports leagues are far more "socialist" than European.

Exactly, hence they lose money.
 
Messi's £160k/week is really high for a player and probably reserved for the highest paid players in Euro soccer. Soccer is slightly different than most US sports in that teams buy and sell the rights to players instead of trading draft picks or whatnot.

I haven't looked at the exact numbers lately but in general, I'd say for the English premiership, teams will have around £500k-800k/week for the whole team in wages and even that is hard to sustain since there is a *huge* gap in the premiership. Rich teams like Man Utd and Chelsea probably have wages in the ~£1.7m/week range and they can sustain higher wages, of course, from gate receipts, ads, etc.

I don't know the numbers of Real Madrid but I think I read somewhere that they had revenue of something like 80M(?) more than Man Utd last year even in the rough economy. I wouldn't be surprised if they're pulling a loss each year though and getting cash infusions all the time. Transfer prices are flashy, yeah, but they may not be that big a deal if the player can be resold for a similar price later on. Obviously, Real Madrid over the last few years has been taking huge losses on bad buys but smaller clubs can make a lot of money developing youth talent to sell to the bigger clubs.

Edit: From above, Ronaldo does *not* get the £80M. Man Utd does. Ronaldo has to haggle with Real for a regular 6 year contract or whatever (probably in the £160-170k/week range).
 
Originally posted by: a123456
Messi's £160k/week is really high for a player and probably reserved for the highest paid players in Euro soccer. Soccer is slightly different than most US sports in that teams buy and sell the rights to players instead of trading draft picks or whatnot.

I haven't looked at the exact numbers lately but in general, I'd say for the English premiership, teams will have around £500k-800k/week for the whole team in wages and even that is hard to sustain since there is a *huge* gap in the premiership. Rich teams like Man Utd and Chelsea probably have wages in the ~£1.7m/week range and they can sustain higher wages, of course, from gate receipts, ads, etc.

I don't know the numbers of Real Madrid but I think I read somewhere that they had revenue of something like 80M(?) more than Man Utd last year even in the rough economy. I wouldn't be surprised if they're pulling a loss each year though and getting cash infusions all the time. Transfer prices are flashy, yeah, but they may not be that big a deal if the player can be resold for a similar price later on. Obviously, Real Madrid over the last few years has been taking huge losses on bad buys but smaller clubs can make a lot of money developing youth talent to sell to the bigger clubs.

Edit: From above, Ronaldo does *not* get the £80M. Man Utd does. Ronaldo has to haggle with Real for a regular 6 year contract or whatever (probably in the £160-170k/week range).

Ah that's a good point. So its not quite like the 50 mil the sox spent to negotiate w/ dicek
 
Originally posted by: JS80
Originally posted by: Aharami
Originally posted by: JS80
Originally posted by: Inspector Jihad
Originally posted by: JS80
Originally posted by: Mo0o
Originally posted by: palswim
From what I've seen, soccer contracts aren't as ridiculous at pro contracts here in the US. I think Leo Messi makes about £8m per year ($13-14m US - or does he make 8?... I forget!), and he makes maybe the 3rd or 4th most in all of football.

Wow that's pretty low

I guess I'm just blown away by the crazy transfer fees

lol $13m salary is low?

it is for a star athlete.

So you know the economics of euro soccer? Or the profitability of its teams?

do you?

No but I'm assuming that most teams lose money just like baseball teams knowing how socialist euro countries are. And it's funny how AT asshats say shit like "wow $13m so low compared to Shaq making $20m."

Why are you so pugnacious about everything. I just meant it seemed low given that soccer is byfar the biggest sport over there and the transfer fees always look high so I assume the very top players are very well compensated, perhaps more than US athletes.
 
Originally posted by: JS80
Originally posted by: MrChad
Originally posted by: JS80
No but I'm assuming that most teams lose money just like baseball teams knowing how socialist euro countries are. And it's funny how AT asshats say shit like "wow $13m so low compared to Shaq making $20m."

American professional sports leagues are far more "socialist" than European.

Exactly, hence they lose money.

Really?

Keep in mind that this doesn't include TV revenue, which is a giant cash cow particularly for teams like the Yankees with the YES network.
 
Originally posted by: MrChad
Originally posted by: JS80
Originally posted by: MrChad
Originally posted by: JS80
No but I'm assuming that most teams lose money just like baseball teams knowing how socialist euro countries are. And it's funny how AT asshats say shit like "wow $13m so low compared to Shaq making $20m."

American professional sports leagues are far more "socialist" than European.

Exactly, hence they lose money.

Really?

Keep in mind that this doesn't include TV revenue, which is a giant cash cow particularly for teams like the Yankees with the YES network.

1) shows EBITDA
2) do revenues include welfare payments by big markets to small markets?
3) i probably got pwned anyway.
 
Well since a lot of soccer clubs are public companies, there's no need to guess. For example, in Arsenal's 2008 annual report, they made 25.7 million pounds in retained profit in 2008. However, this included 5.2 million pounds in player trading from selling Henry, among other things.
 
Originally posted by: JS80
Originally posted by: Inspector Jihad
Originally posted by: JS80
Originally posted by: Mo0o
Originally posted by: palswim
From what I've seen, soccer contracts aren't as ridiculous at pro contracts here in the US. I think Leo Messi makes about £8m per year ($13-14m US - or does he make 8?... I forget!), and he makes maybe the 3rd or 4th most in all of football.

Wow that's pretty low

I guess I'm just blown away by the crazy transfer fees

lol $13m salary is low?

it is for a star athlete.

So you know the economics of euro soccer? Or the profitability of its teams?

Relative to a $130 million transfer fee, it seems low.
 
Originally posted by: JS80
Originally posted by: MrChad
Originally posted by: JS80
Originally posted by: MrChad
Originally posted by: JS80
No but I'm assuming that most teams lose money just like baseball teams knowing how socialist euro countries are. And it's funny how AT asshats say shit like "wow $13m so low compared to Shaq making $20m."

American professional sports leagues are far more "socialist" than European.

Exactly, hence they lose money.

Really?

Keep in mind that this doesn't include TV revenue, which is a giant cash cow particularly for teams like the Yankees with the YES network.

1) shows EBITDA
2) do revenues include welfare payments by big markets to small markets?
3) i probably got pwned anyway.

4) you are a fucking moron.
 
Originally posted by: Mo0o
Originally posted by: JS80
Originally posted by: Aharami
Originally posted by: JS80
Originally posted by: Inspector Jihad
Originally posted by: JS80
Originally posted by: Mo0o
Originally posted by: palswim
From what I've seen, soccer contracts aren't as ridiculous at pro contracts here in the US. I think Leo Messi makes about £8m per year ($13-14m US - or does he make 8?... I forget!), and he makes maybe the 3rd or 4th most in all of football.

Wow that's pretty low

I guess I'm just blown away by the crazy transfer fees

lol $13m salary is low?

it is for a star athlete.

So you know the economics of euro soccer? Or the profitability of its teams?

do you?

No but I'm assuming that most teams lose money just like baseball teams knowing how socialist euro countries are. And it's funny how AT asshats say shit like "wow $13m so low compared to Shaq making $20m."

Why are you so pugnacious about everything. I just meant it seemed low given that soccer is byfar the biggest sport over there and the transfer fees always look high so I assume the very top players are very well compensated, perhaps more than US athletes.

cuz i'm an asshole. so sue me.
 
Originally posted by: Mo0o
Originally posted by: palswim
From what I've seen, soccer contracts aren't as ridiculous at pro contracts here in the US. I think Leo Messi makes about £8m per year ($13-14m US - or does he make 8?... I forget!), and he makes maybe the 3rd or 4th most in all of football.

Wow that's pretty low

I guess I'm just blown away by the crazy transfer fees

All right, well all of that we just discussed, we may have to discard. $50m a year? Wow!
 
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