In the months of December-January and July-August of each year, the media are activated considerably in the sports field. Why on these dates? Simply because they are the transfer windows of the most important international football federations worldwide. These are the times of the year in which professional clubs have the possibility to register new players in their squad, sell those with whom they will not count and organize their club’s roster for the season.
The leagues of Spain, England, Italy, Germany, Brazil, Argentina, Colombia and many others, open their player registration period, so the most used word in the middle of the king sport is “Transfer”.
Transfers in football have had a great boom in recent years, reaching unimaginable figures in the 90s. We are talking about figures that exceed 100 million euros that are being paid by a player in each transfer window . Beyond the money that moves in this type of transactions, we want to explain the types of transfers that we can find in the world of football.
To make the reading more exciting, we will explain each transfer with a famous case.
- Final transfer:Player Philippe Coutinho was transferred definitively from Liverpool FC, to FC Barcelona. In the present case, there was a definitive transfer of the Player’s sports rights, which in other words means that Coutinho ended his employment contract with Liverpool FC to sign a new labor contract with FC Barcelona. As consideration for the early termination of Coutinho’s employment contract with Liverpool, FC Barcelona paid the sum of 120 million euros fixed plus 40 million euros in variables.
In this type of transfers, the transferring club, onerously yields 100% of the Player’s federative rights (Power to register it) and a negotiable percentage of its economic rights (The value paid for the transfer of the Player). Normally clubs sell 70-80% of the economic rights of the Player, so that in a future sale, the transferring club can participate in said future sale of the Player.
- Transfer to loan:In loan transfers there can be 4 different variables on how to make the loan. However, in general, in a loan transfer, the transferor club temporarily transfers the federative rights of the Player (the power to register) for a certain period of time, but does not yield the economic rights of the player in any percentage. Why not give up the economic rights of the player in a loan? Simply because the transferring club, having an employment contract with the player, is the holder of said economic rights and its employment contract will not be terminated, but instead, it will be suspended for the term established in the loan. In such suspension, the player is entitled to sign a new and temporary employment contract,
On the other hand, transfers in loans are divided into two branches. They can be onerous or free loans and can be with purchase option or without purchase option.
2.1. Transfer of onerous loan:On burdensome loan transfers, the assignee club pays money to the transferor club solely for the transfer of the player’s federal rights. No money is paid here for economic rights, since they are not transferred. Player James Rodríguez has a valid contract with Real Madrid, however both parties have agreed to seek a loan for the Player. FC Bayern Munich made a transfer to an onerous loan by the Player, since for the two years in which James will be in FC Bayern Munich, the latter will pay Real Madrid a sum of 10 million euros. Here Bayern is not definitely buying from James, but instead, is temporarily acquiring the federative rights of the Player for two seasons onerously.
2.2. Free loan transfer : In free loan transfers, the assignee club does not pay any money to the transferor club for the transfer of the player’s federal rights. The transferring club simply transfers the player so that he develops in another club and can demonstrate his conditions, for example while completing his training stage. The player Martin Ødegaard, was assigned free of charge by Real Madrid to SC Heerenveen for a season.
2.3. Transfer of loan with purchase option: Regardless of whether the loan has been made free of charge or onerous, the transferring club may transfer to a player on loan, granting a purchase option to the assignee club so that once the loan term is terminated , the assignee club can definitely acquire the Player. That is to say, in the loan the federative rights of the player are temporarily assigned and in the same way, an option is granted so that the assignee club definitively buys the federative rights of the player and a percentage of the economic rights, as we explain it in the point 1.
Player Juan Guillermo Cuadrado had a current employment contract with Chelsea FC. Juventus FC, made a loan with option to buy by Square, in which Chelsea temporarily ceded the federative rights of the player to Juventus, for a season and granted a final purchase option for 100% of the federative rights and the 80% of the economic rights of the player for 25 million euros. Square was his first season in Juventus and due to his great performance, they decided to exercise the option of definitive purchase by the player and pay the clause of 25 million euros.
2.4. Transfer of loan without purchase option: As in the previous case, regardless of whether the loan is onerous or free, the loan may establish that no purchase option is granted by the Player. Normally this type of transfer happens with minor players who are going to develop to another club, but the club that gives it, wants to keep the player in his future seasons. The case of player Victor Moses is the perfect example. Chelsea FC gave up temporarily and onerously with no option to buy the player from Liverpool FC and once the player took an important level, he resumed his contract with Chelsea FC and today he is the undisputed holder.
- Free player:This case, despite not being established in the regulations as a type of transfer, happens commonly in the world of football. When a player ends his employment contract with a club, he has the ability to freely negotiate with any club that wants to contract his services, so in theory no value is paid for a transfer, since the labor contract that the player had with His former club expired.
The best example of this case is the renowned case of Neymar, moving from FC Barcelona to PSG. In this case, the PSG did not pay directly to FC Barcelona for the final transfer of Neymar. In this case, the PSG financed the money to Neymar so that he unilaterally terminated his employment contract with Barcelona, paid his termination clause for 222 million euros and went freely to the Parisian club. That is, the player went free to PSG since he had no current contract with Barcelona, when he finished unilaterally.
As a summary, these are the types of transfers that we can find in the world of football, a world in which the values paid by a player increase daily and that in some occasions, new ways of making the transfers are sought to reduce the costs involved in a transfer.