nottsblue wrote:JamieMCFC wrote:nottsblue wrote:One thing to potentially come out of this transfer is the way the transfers are actually done. Barcelona are reportedly demanding the full payment of the buyout clause to be paid in full in one instalment. This is not the way transfers are currently done. Most transfers have the fee paid over a number of years. I suspect this is a last ditch effort by Barca to try and scupper the deal in the hope PSG either haven't got that amount of cash or whether they think this is what will make PSG fall foul of FFP regulations.
If it does turn out that they have to pay the full fee up front I hope every club that is forced to sell to Barca, and let's be honest, that's how a lot of their transfer business is conducted, that all those clubs demand their full fees up front. Hopefully this will bite them in the ass in the future.
Transfers and buyouts are two different things. Transfers are paid over the course of the contract and buyouts are paid in full up front.
Is that true? You live and learn. Still, if I was a selling club to Barca, dippers with Coutinho for example, knowing they were loaded I'd ask for the full balance up front
As in Neymar’s case, the buyout clause can also increase over the course of a contract.
After signing a new deal with Barca last year, Neymar’s initial buyout clause was 200 million euros, but grew to 222 from July 1st and would have risen to 250 million once had he entered a third year of the deal.
How can they be activated?
The biggest difference between Spanish buyout clauses and release clauses more common in other big leagues around the world is the manner in which they must be triggered.
Rather than the buying club merely paying the selling club the amount set by the contract, the player himself must buy himself out.
This is done by depositing the amount of the buyout clause with La Liga to release the player from his contract. La Liga then pass the money onto the selling club.
Normally this will require the buying club to pay the player the sum of the buyout clause up front.
Are there tax implications?
A huge change in how these transfers are taxed has resulted in a big increase in the number of deals being done by meeting buyout clauses.
Until 2016 the money advanced by the buying club to the player was subject to income tax, which could add up to 48 percent onto the price of the fee. It is now tax free.
http://worldsoccertalk.com/2017/08/02/h ... uses-work/