Manchester City paid £100 million to transfer Jack Grealish from Aston Villa. How do football/soccer clubs pay the transfer fee to other clubs?
In: Economics
ok heres the thing.
Most players sign multiyear contracts with clubs and can not leave while that contract is ongoing.
So lets say player X signs with club Y for 5 years. but after 2 years the player dosnt get along or wants to leave, the club he´s moving to has to buy his contract or pay a negotiated compensation to the first club since he still has 3 years left on the contact.
now depending on valuable the player is to the club (skill on the field, merch sales, promotional value) they can negotiate a higher or lower value to let him out of his contract, and if the player is of little value to the club they can even relinquish rights or even allow him to play as a ceded player where he is still employed but the club but he plays for another club with the other club playing the first club for the player.
When the player does not have a contract with the club, he just leaves. a recent example is Lionel Messi, which ended his contract with FC Barcelona and due to the clubs financial problems they were unable to renew his contract, so he just moved over to PSG with no money changing hands between clubs.
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