Eli5: Transfer fee in football

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How does transfer fee work in league football? How does this relate to player’s salaries and what does it mean to go on a loan to another club?

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Transfer fees are just the price one club pays to buy the contract of a player at another club. There is no set way they are calculated – its a negotiation between the two clubs – but typically the remaining salary, talent and estimated career left are major factors.

Going on loan to another club is just that – you loan a player to another club for a set duration. In these cases, there is no transfer fee associated, but the club that takes the loaned player is typically responsible for their salary for the duration of the loan and the loaning club _might_ ask for a one-time fee to compensate them for the loss of the player..

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