Sam McCallum upfront fee revealed (5 Viewers)

[AStonesThrow]

Ok so there’s been talk about how much we got up front for McCallum, rumoured upto £3.5million.

Norwich’s sporting director came out yesterday and said “I think everyone knows us well enough that we’re not paying £3m up front for a 19-year-old who’s played 21 games in League One,” shown in this article:

Further details emerge about Norwich's transfer deal with Coventry City via @Onefootball. Read it here: https://1.ftb.al/bwfKEFuNe4

But I’ve also just downloaded the Football Manager 2020 official update (post transfer window) with all the new squad updates and it’s showing McCallum as sold for £1.2M upfront. If I could figure out how to upload a photo to here I would

 

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[JoshCCFC1987]

It also says Bruno andrade is on 8 grand a week at Salford I don’t believe that for 1 second

 

[lord_garrincha]

Well they are not likely to say... “I think everyone knows us well enough to know that we love spunking millions on 19-year-olds who have played 20 games in League One, and we can't wait to contact the next team!”

Probably something in the middle.

 

[JulianDarbyFTW]

It also says Bruno andrade is on 8 grand a week at Salford I don’t believe that for 1 second

There was an interview on the Quickly Kevin podcast with Miles Jacobsen, and he said FM used to have accurate wages but a chairman contacted him to say it had caused arguments in the dressing room, so they decided to start using fictional wages.

 

[SkyBlueCRJ]

Very few transfer fees are paid up front. Using Nicholas Pepe's transfer to Arsenal as an example - face value is £72 million yet the up front was believed to be £20 million. Most clubs cannot afford to have such large chunks paid out in one go hence why they'll often pay in installments or add-ons. The club would've made sure the add-ons are realistic so I wouldn't get too caught up in what Norwich's sporting director is saying as he's hardly doing to lay all of his cards on the table and reveal what is paid when and for what reason.

 

[Frostie]

Almost no club pays full transfer fees upfront these days, certainly not substantial fees anyway.

 

[ccfcway]

well, it seems to be gospel on here that we paid £750k up front for Godden.

I don't believe that for a second, as SkyBlueCRJ said, very few transfers are paid up front, never mind £750k league one transfers !

 

[SBAndy]

I think the interpretation of “up front” is more likely to mean the guaranteed commitment, albeit it may be paid over a year or 2 (maybe longer?). Add-ons would increase this.

 

[Nick]

Did anybody think it was all up front in one go? Strange how people are trying to make big news out of it to get people annoyed.

 

[Frank Sidebottom]

Sky sports article from yesterday said £3m rising to £4.5m

 

[ccfcway]

I think the interpretation of “up front” is more likely to mean the guaranteed commitment, albeit it may be paid over a year or 2 (maybe longer?). Add-ons would increase this.

I think your right. The same as Godden !!

 

[ccfcway]

Sky sports article from yesterday said £3m rising to £4.5mView attachment 14186

so prepared to pay £3m (Commited to pay that over a certain period) rising to £4.5m if he hits 100 caps for England and becomes prime minister by 2050

 

[SBAndy]

I think your right. The same as Godden !!

Indeed. It’s a bit of a cash-balancing exercise - incoming transfer fees on a monthly basis that outweigh outgoing transfer fees and leave a surplus to manage the other running costs.

The Jodi Jones transfer is a prime example - think it was £150k we signed him for but only made an initial payment of £30k to Dagenham and Redbridge.

 

[CanadianCCFC]

I’m more worried about the guaranteed amount we’re getting rather than “up front” (as long as we get it by the summer, ideally)

 

[David O'Day]

Ok so there’s been talk about how much we got up front for McCallum, rumoured upto £3.5million.

Norwich’s sporting director came out yesterday and said “I think everyone knows us well enough that we’re not paying £3m up front for a 19-year-old who’s played 21 games in League One,” shown in this article:

Further details emerge about Norwich's transfer deal with Coventry City via @Onefootball. Read it here: https://1.ftb.al/bwfKEFuNe4

But I’ve also just downloaded the Football Manager 2020 official update (post transfer window) with all the new squad updates and it’s showing McCallum as sold for £1.2M upfront. If I could figure out how to upload a photo to here I would

He's going to say horwich they paid up front is he. He'll have every club he tries to sign a youngster using that as their base amount.

Sent from my SM-G975F using Tapatalk

 

[Grendel]

well, it seems to be gospel on here that we paid £750k up front for Godden.

I don't believe that for a second, as SkyBlueCRJ said, very few transfers are paid up front, never mind £750k league one transfers !

no one said it was upfront you wierdo

 

[Spurs 'City Away Kit' Kit]

Almost no club pays full transfer fees upfront these days, certainly not substantial fees anyway.

Not paying everything up front is what will cause massive problems in the next few years. Clubs are gambling on tv revenue continuing to rise so they can cover these costs. I’ve heard that Man Utd still owe over £200m in stages payments from previous years transfers. If they are in that position others are bound to be and might be one of the reason the likes of Chelsea have been a bit quieter in the market over the last couple of years (even taking the transfer ban into account)

 

[Frank Sidebottom]

Aren't most transfer fees paid in installments over the duration of the contract signed by the player?

 

[TTG]

I think your right. The same as Godden !!

Possibly not in this case, as we got £750k-£1mil for Chaplin, so could have been invested straight back in!

 

[Brylowes]

Possibly not in this case, as we got £750k-£1mil for Chaplin, so could have been invested straight back in!

So do you think the £750k - £1mil we got for Chaplin would have been up front ?

 

[oldskyblue58]

No surprise that the full fee was not paid up front. In actual fact given the timing of the deal it probably suits CCFC for it to be deferred..... just a thought but here is perhaps some reasons why (yes it is conjecture in parts)

Part of the deal is the loan back for the rest of the season. If Norwich pick up McCallum's wages then that would form part of the sale cost to Norwich that takes him out of the CCFC wages cost and SCMP calculation. Could have been an issue that needed addressing given the low ticket income.

The deal was done last thing on the deadline so no real opportunity for CCFC to spend any of the money. It would suit our club to receive the monies due during the next salary cap for next season. SCMP is calculated on sums actually received and the date received, not the sale contract date which has terms most likely spread over many months even years. So the £3.3m quoted would not all form part of the current SCMP

So far this SCMP period the club have sold Chaplin £1m, Bayliss £2 and McCallum £3.3m. From an accounts profit point of view that creates around 5.5m profits for the year. Howeever from a cash flow point of view that probably creates £2m to £3m cash to cover running costs. The deferred income will carry forward to the next year (s) to help create future SCMP budgets

Possibly the deal done and paid so far has created little actual cash, which would be put towards running costs in any case and therefore not available now to MR (as was the case). It doesnt mean SISU have taken funds out from the sales, we wont know until this time next year if they have drawn anything at all (i suspect they may have had to put more in)

The £3.3m quoted will also include elements dependent on future events, eg McCallum playing a certain number of first team games which have no actual value until the event happens.

Finally i assume we have a 10% to 15% sell on clause that will help in future years but is not quantifiable

Not surprised Norwich are saying they haven't paid that much

 

[TTG]

So do you think the £750k - £1mil we got for Chaplin would have been up front ?

Fair point