Football clubs spend big bucks on player transfers. There is almost no limit on how much a club is allowed to spend. When there is no limit, they go as high as they want. Neymar’s transfer from Barcelona to PSG costed the frenchies outstanding £200m.
Where does all that money come from?
Football clubs spend a lot of money on players, and still have a lot left in the bank. So you would ask yourself where does all that money come from?
Merchandise hold the biggest slice of income for football clubs. Therefore clubs try to get hold on players that have many fans and are known in the public. People buy jerseys from that player and the club gets most of the income.
For this purpose a lot of clubs want to abuse the players rights and keep the income to themselves. It all comes down to how the deal is set between the club and the player. if the player agrees to get little to no share from the profit the club made using his name and face, the club would be happy with that.
There are some transfer costs that are not showed on the media. During any transfer, English clubs have to pay 4% transfer fees to the Premier league. The levy helps fund the premiums due under the Professional Footballers Pension Scheme.
The buying club usually pays the price in few installments. Slightly taking the burden off of the clubs bank. 50% are payed when the transfer is completed, 25% after a year and another 25% the next year.
The most important part of a contract for a player is his salary. Although there are many bonuses that may skyrocket a players income depending on his performance.
Players appearance in the premier league can increase his salary after a set number of appearances the player has made. Substitutes get only 30% of this bonus
Win bonuses can be anywhere between a few hundred pounds in the lowest divisions, up to ten thousand pounds and more in the premier league
Many clubs don’t offer bonuses on personal achievements as it may cause selfish play which may conflict with team aims
If the player directly assists he may get a rweard of around 3 thousand pounds. This should be more encouraged as it mayhave positive effect on team play and encourage players to work together