Compensation on a free player

When you can sign a player without paying and it says you have to pay compensation does that mmoney come out of you pank balance or your transfer balance

I think it's stupid! The players contract is expiring, we're not costing them anything to let him go!

Transfer fund.

It comes out of both as any transfer fees are paid from the bank balance.

I think it's stupid! The players contract is expiring, we're not costing them anything to let him go!

It's a reflection on a real-life rule which is designed to make it worth the while of smaller clubs to develop young players as otherwise they would lose them for free at the end of their contract to bigger clubs. Only applies to those under 24.

Many of those have price set as 0, so just offer their full price.

Most of the time the club wants a 40% sell-on fee, which can be negotiated to some 25% or so.

Other than that, it's to prevent poaching young players.

Obviously it comes off both. Your transfer budget isn't some pot of money stashed away in a back room to evade the taxman, it's just a theoretical entity telling you how much of the bank balance the board will allow you to spend on transfers. The only money the club has is what is listed in the bank balance.

The only time there is a distinction is when you agree to sign a player who will arrive at some point in the future (e.g. the following summer). In that case your transfer budget will be reduced at the time you seal the deal, but the money will only come out of your bank account (or the club's bank account rather ) when the player actually moves to your club.