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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Players have a contract with the club which traditionally expires in June after the season ends. The Club registers the player with the Football Association and they are only allowed to play for their registered club. The club negotiates pay with the player (or the player’s agent). If another club want to buy that player, they have to negotiate with the current club to buy the registration and with the player for salary. When both are accepted, the registration is transferred. With loans, the loaning club negotiates a contract with the borrowing club which sometimes has a loan fee. They then agree the wages. The parent club continues to pay all the wages and if agreed, the borrowing club pay some of that money to the loaning club.
Say you have a young player earning £10,000 a week at Chelsea and they go to Gillingham to gain experience. Gillingham may pay £5,0 a week to Chelsea to cover part of the salary.00
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