Paul Pogba for 89 million pounds. Andy Carroll for 35 million pounds. Zlatan Ibrahimovic? Zero.
The explanations of transfer fees in the world of football can often be blurred, and occasionally, outright baffling.
Marketability and third-party ownership are both two measures that dictate a price, and god forbid you’re English. No matter how perplexing it can be, it is rooted in as one of football’s key workings in the professional and semi professional world – except in Australia.
We see countless times in the A-League, players ‘mutually terminating’ their contracts to play for other clubs who have not done a single thing for them. Ridiculous right? Their previous club gets zero reward for putting countless hours of time into a player and churning them out to a different club. This is one of Australia’s biggest shortcomings in producing a successful footballing market.
The main argument against transfer fees is that the wealthy clubs such as Sydney FC, Melbourne City and Melbourne Victory will be able to hoard talent as is the way in Europe at teams such as Chelsea. Although this is partially correct, the introduction for transfer fees is a completely valid strategy to boosting football from the grassroots up, especially in the National Premier League.
Say there is an introduction of transfer fees in the A-League, and an increase on the $7,000 maximum fee in the NPL, there are a few key improvements in the game. Listed below are the main positives.
1.Reduction of fees for grassroots and elite-youth football
A large issue with elite-youth football and grassroots football is that is funded from the bottom to the top. However with transfer fees, this could be completely flipped. If a club receives two $300,000 fees a year, that covers 400 kids’ registration fees if you use the $1500 figure that Adam Peacock stated he pays for his son – and even more kids if the fee is lower.
Not only does this help the current players to stay in the game, but it will encourage more parents to allow their kids to play representative levels where they are instead wasting their talents in the local association teams or moving codes.
2. Investment back into the club staffing
Working in football in a non-playing capacity in Australia isn’t a viable option financially unless you are involved with the FFA and some private academies. The outlook for coaches looking to work in clubs is significantly less bright. Coaching SAP level can bring in less than $2000 per season for some clubs.
Paying more money is going to promote the positions to more people to chase it full time, thus leading to a higher quality being produced.
3. Investment in facilities
It is safe to say some of the facilities for all clubs in Australia are dire. Some are lucky enough to have artificial turf on their grounds thanks to the government, however the vast majority are at a level of amateurism.
Practically all the clubs in the A-League don’t even have their own training grounds, so money from transfers are a boost that these clubs can use into producing better training spaces for their players to improve in the best capacity possible.
Although I have only reached the surface on the positives on transfer fees, the salary cap is another financial restraint which won’t allow players to transfer for a monetary value between clubs in the A-League and NPL. This makes the implementation of transfer fees an issue that isn’t easily introduced quickly, but something that must be considered in the near future when the FFA announce their restructured ownership models for A-League clubs.
Steve
Guest
The bottom line is it would give too much power to the clubs, and FFA do not want that> All power MUST reside at Head Office!
albatross
Roar Pro
Kids are expensive. Even Scouting has fees high enough to put some people off - $400 per annum to just to attend meetings and then there's the cost of uniforms, several weekend camps (including transporting children to them) and the various large scale events both in Australia and overseas. The cost of parents' time in making community groups like Scouts function is never factored in. Is this a factor in football? One of my daughters also participated in the local Gang Show - which was also several hundred dollars all up.
Euromob
Guest
Every contract binds you. A rental lease, a mortgage etc. Of course the player can walk away anytime he wants. He's not locked up like cattle. If he walks out of a contract he loses money. Just like when you break the contract of your lease, your mortgage, your car loan etc.
Lionheart
Guest
That's frightful, though I'm sure Adam Peacock said $1100. I recently checked a few clubs fees, from their websites, and they say $300-$350 depending on age, family discounts etc. This includes federation fees (FFA, State and city) plus insurance etc though no mention of uniforms and match fees of $5-10 per game are extra. The clubs I checked are in the BPL.
Arnold Krewanty
Guest
I think there is enough $$ for some of the HAL clubs, but not all, and that is where the imbalance would occur. Sure, NPL clubs should get paid $$ for developing players, and so should everyone, but you'd find a Caceres scenario with the wealthier clubs, while them poorer clubs would not compete in attracting decent players. Promotion & relegation is a pipe dream. Lower leagues don't have any corporate TV coverage nor the $$ in general, and some HAL clubs such as CCM/Nix would die away pretty quick if relegated with not revenue to support them.
Mark
Guest
England having four tiers of professional football has nothing to do with the effectiveness, or otherwise, of 'trickle down economics'. Quite simply, the reason England has so many tiers of professional football is that the sport is ingrained in English culture to such an extent that there is a revenue base to sustain them. And, as Nemesis has suggested below, while transfer fees get all the news, only a small amount of that revenue would come from transfer fees. To the contrary, professional football has only a marginal attachment to Australian culture. A league where two or three big clubs dominate every year would not grow, as you think it would. In fact, it would shrink. Interest in those big teams would go up marginally from where they are now, while interest in the 'smaller clubs' would fall off a cliff.
NUFCMVFC
Roar Guru
Generally not the end of the world as most of the European transfer fees are as absurd and as much a waste of money as is Chinese Super League hyper-wages So while transfer fees to o/s clubs is good, intra A-League transfer fees is not something I am personally big on That said the $7000 compensation rule needs to be looked at to help trickle down flow of money Maybe and big maybe intra A-League transfer fees would be OK if we lighten the salary cap, so bigger wage MV, SFC and MC would given money to the CCM's etc, which they can then spend on higher wages etc
SonOfLordy
Guest
Australian soccer is small fry and most of these A-League clubs are barely solvent. Australian soccer needs to consolidate the struggling existing clubs rather than add another 2 or 4 clubs to an already diluted, over-saturated league. The Australian market is simply too competitive with three other football codes that are more popular than the A-League The A-League aspires to be something resembling the EPL, but in reality they are something barely resembling the size of the Scottish Premiership minus Rangers and Celtic. The A-League better be careful because with added expansion in 10 years they'll simply be the NSL plus Wanderers, Sydney, and Victory. And I'll be telling soccer fans "I told you so".
Ruudolfson
Guest
A must for Oz football, i don't understand why it hasnt been considered to this point.
Nemesis
Guest
Chin up, Jake. You have no need to apologise to anyone. Congrats on your 1st article.
Old Greg
Guest
There were transfer fees in the NSL era. Glory had to pay transfer fees to bring Brad Maloney, Troy Halpin, Con Boutsianis, Rob Trajkovski, Jade North, Tom Pondeljak and basically anyone else who wasn't a WA boy to Perth (Maloney broke the Aussie transfer fee record.)
Jake Ghalloub
Roar Rookie
Sorry Brian. Thankyou for your feedback on what was my first piece. Onward from here.
Jake Ghalloub
Roar Rookie
G'day mattq, thank you for your engagement. With an increase in the salary cap expected with the incoming TV deals, and hopefully a further improvement with the new ownership model coming to the forefront of the AL, there is going to be more wiggle-room for the big clubs to spend more on wages. This obviously relies on the salary cap being upped.
Jake Ghalloub
Roar Rookie
I am excited to hear your article on this, I will be sure to engage in that. Thank you for your feedback on my first ever piece. With the abolishment of transfer fees though, could we see the bursting of the financial bubble that surrounds football? Clubs like Southampton for example are handed millions every window which allows them to spend money where merchandising etc doesn't compare to the big boys?
Jake Ghalloub
Roar Rookie
Inter A-League transfers would benefit the likes of CCM, Wellington and Jets no? Getting reward for the players they are producing.
Jake Ghalloub
Roar Rookie
Thanks for your feedback Waz. You do create some good points and the $62million per year would be a huge loss to the game, even if it is halved. I guess that the issues surrounding this could be improved with restructuring to the salary cap and promotion and relegation. However these are arguments for another story.
Chopper
Guest
The transfer system helps clubs, players and the A League but it must be done without the salary cap. For example Jack Sprat who is a good striker with potential to get better wants more money because he has scored plenty of goals this season the club wants to keep him so negotiate a higher salary providing Jack Sprat signs a four year contract which he signs. Another successful season sees a Korean club, and also another Australian club wanting his services. Jack is enthused by this opportunity and wants to move on because he will also get a large increase in salary and 5% of the transfer fee. His current club is recompensed for the effort put into the player enabling them to replace him with a similar player or bring a youth player forward and put the fee received into consolidated revenue. It is not the player transferred but his contract. However if initially the club refuses to up Jack's salary and his contract is almost at an end he can leave as a free agent at the end of his contract and go where he pleases. (this is currently happening in the A League). OK the benefits are that the player gets an initial pay rise, he stays at the club longer because of the longer contract and the A League benefits because teams are able to be more consistant because they have players on longer term contracts. It is possible then to hold on to young players by rewarding them with higher salaries coupled with longer term contracts if a club so wishes. It does not mean that all players will command a fee or that clubs wish to tie all younger players down. Some will still be on yearly roll over contracts because they will have to earn an increase in pay and unfortunately some don't step up. There are some players within the A League that will never command a transfer fee but the aim of every academy will be to produce a saleable commodity which makes the clubs invest better coaching, facilities and scouting into their academies. The smaller clubs should be able to increase their income by being astute. Players will go there knowing there is a chance to get good coaching, promotion to the first team and a chance to move on to bigger and better things if they make the grade and desire to. Because there is a transfer fee in the A League the Korean club mentioned earlier now has genuine competition for Jack Sprat and this should raise the value of our players to all overseas clubs. If we do not value our players how can we expect others to?
RBBAnonymous
Guest
We would have transfer fees that would reflect the value of players in the Australian market. Whether they are significant or not it makes no difference. Clubs do not have to participate in a transfer market if they don't want to so what's the issue with introducing it for those who do. We do not know which clubs will participate, it might be one or two it might be all of them.
Bfc
Guest
Adam Peacock...you got off lightly! 2015 ( Brisbane) NPL fee for a U12 at our 'local' clubs was $2000...! Disgraceful..and the NPL becomes a comp for kids that can afford this largesse. It is crazy that clubs at so many levels (eg Capital 2...effectively the sixth/seventh teir...) pay some Senior players. Not sure if a transfer fee is the panacea but the current 'bottom up' funding sucks. Clubs lose interest in players once the breech the U18 level and are available for Seniors footy, with Head Coaches driven by short term results so every season they 'recruit' older players who have peaked with 'match payments' and jettison much of the Youth talent fostered through the club ranks.
Arky
Guest
If there were significant transfer fees in Australian football, players simply wouldn't be transferred. They would sit on the original club's books until their contract ran out and they could move as free agents. Not many clubs could afford to pay transfer fees, or justify doing it when in most cases the same quality players are out there on free transfers (whether due to being axed or just to get the wages off the original club's books). At the top level in Europe, it's different because the quality of player you want may not be available on a free (and if they are, you might have to pay them such a high salary that you would have been better off paying the transfer fee).