NUFC specific FFP/PSR discussion

[Bimpy474]

I still can't get my head around why a club pays an agent of a player they want to buy, or when renewing a contract. It's ridiculous, and the football authorities should have ended that shite years ago.

 

If a player employs an agent, they should pay him. Agents may well do a good job for the player, but being paid the clubs is absolute nonsense. 

[Jimburst]

3 minutes ago, Bimpy474 said:

I still can't get my head around why a club pays an agent of a player they want to buy, or when renewing a contract. It's ridiculous, and the football authorities should have ended that shite years ago.

 

If a player employs an agent, they should pay him. Agents may well do a good job for the player, but being paid the clubs is absolute nonsense. 

 

There's no difference, players would just ask for that fee to be part of their signing package and then they'd pay it. 

[Bimpy474]

3 hours ago, Jimburst said:

 

There's no difference, players would just ask for that fee to be part of their signing package and then they'd pay it. 

 

Then makes rules preventing that. However, It's too late now but regulation should have happened long ago.

 

 

Edited 12 hours ago by Bimpy474

[Jimburst]

Agreed, I reckon they should be made to pay their wages or something? I guess that would just inflate player wages too.

[Sibierski]

40 minutes ago, Bimpy474 said:

I still can't get my head around why a club pays an agent of a player they want to buy, or when renewing a contract. It's ridiculous, and the football authorities should have ended that shite years ago.

 

If a player employs an agent, they should pay him. Agents may well do a good job for the player, but being paid the clubs is absolute nonsense. 

It’s so much money going out of the game, it’s disgusting. Horse has bottled though, but they can still try and tighten things.

[Kaizero]

11 hours ago, Bimpy474 said:

Then makes rules preventing that. However, It's too late now but regulation should have happened long ago.

 

General custom is that the club pays the agent the fee they'd take from their client's wages/bonuses and similar. Alternative would be that the club pays the player in wages/bonuses what the player would have to pay their agent for the agreed terms.

 

Here's examples for both using generic and easily digestible numbers rather than numbers from an actual deal:

 

Background Info for Examples:

• Player X has signed a 3 year deal with Club Y, giving him a weekly salary of £1000
  • £52k per annum
  • £156k in total
     
• In addition, Club Y has agreed to pay Player X a £5000 "signing-on" bonus
  • Player X will earn £161k in total at the end of his 3 year deal with Club Y
     
• Player X is represented by Agent Z, in their representation agreement Player X has agreed to pay Agent Z;
  • 10% of his salary
  • 10% of his bonuses
     
• Agent Z is therefore entitled to;
  •  £15.6k from Player X's salary for the 3 year deal agreed with Club Y 
  • £500 from Player X's "signing-on" bonus from Club Y
    • £16.1k in total

Club Pays Agent:

• Player X signs the deal with the terms specified above, with Club Y signing a separate payment agreement with Agent Z for £16.1k
  • This would in most cases be structured as one of the below;
    • 1 lump sum payment – this is the easiest option for Club Y, though it may not be the wisest economic choices as if Player X leaves the club before the contract is up, the "extra" money paid to Agent X will be lost
    • 3 annual payments – this lowers the chance of throwing money out of the window should Player X leave after 1 or 2 years, not seeing out his contract
    • 6 semi-annual payments – this lowers the chance of throwing money out of the window even further, but as with the "3 annual payments" option, this option means more beurecracy and tax-related work efforts to be put in by Club Y

Player Pays Agent:

• Player X assumes responsibility for paying Agent Z, leaving Club Y out of their payment arrangement
  • This, however, does not mean that Club Y won't be the ones paying Agent Z...
     
• Player X and Agent Z agreed that Player X would sign for Club Y if offered a weekly salary of £1000
  • However, the weekly salary demand for Playr X to sign under the "Player pays Agent" scenario is not the same as the one in the "Club pays Agent" scenario
    • Player X will now only sign for a weekly salary of £1100
  • The same applies to Player X's "signing-on" bonus, where the absolute minimum demanded for Player X to sign is now £5500
     
• In the end, it's always the club that bears the financial burden of paying a player's agent/agency for services provided

[McDog]

2 hours ago, Kaizero said:

 

• In the end, it's always the club that bears the financial burden of paying a player's agent/agency for services provided

 

In contrast, in the USA the agent is hired  by the player and THEY negotiate a percentage deal amongst themselves as for how much the agent is paid for negotiating the contract. Some players now have no agent and negotiate deals to save the percentage. Teams NEVER EVER pay agents. They work for the player.