48 month Transfer Fees

Hi, I’m curious about how transfer fees paid over 48 months affect your current budget? Basically, what I’m asking is if you have a £20m budget and you buy a player for £20m over 48 months, how much will be taken off the budget (roughly)? Also, a rough estimate for 12, 24, 36 month transfers are welcome?

Also, I assume if you want to make a transfer over say 48 months then the total fee will have to be a little more. Roughly, how much more? Maybe 10% i.e. £30m cash or £33m over 48 months?

Cheers

When buying over 48 months as far as I remember you spend 1/4 of your budget.

For example if you would go out and buy a player for 20m all over 48 months only 5 mil would be taken out of your budget. Careful though, abusing this feature can lead to a few bad things:

1. Teams will bump up prices if not paid upfront. At first it's a negligible amount but it can stack up in the long run.

2. If you don't win stuff you'll be bleeding serious money.

3. You're stuck with paying a monthly fee for 4 years, if the player does not confirm, is sold, etc. you'll STILL be paying.

I'm not sure how much of your budget will be taken off for 12 months but for 24 you pay half of the sum and for 36 a third.

Nice, just what I wanted to hear. I'll try not to abuse it, honest he he!

Cheers

Basically all that is taken off your current budjet is what you will pay that year (12 months). Hence if you pay over 48 months you only pay a 1/4, which is the equivalent of 12 months. If you pay some up front and some over months then all of the up front sum plus the first 12 months of payments will be taken off your budget. Quite simple once you get your head round it.

What about the negotiating? How much extra am I looking at paying compared to a cash transfer (all up front)?

It depends on the club really, a big club can often look for a premium of up to 25% on the upfront price, while a small club may decide to lump on a percentage of future fee, and a financially troubled one will take what's offered.

And remember whats not taken out now in an installment arrangement will be taken out of future budgets for as long as the fees are being paid.

the diff between 12 mth and upfront cash is same on ur transfer budget

but obviously diff on ur balance in Finance section

juz be careful with the 48 months usage cuz its really addicting and can get u into deep debt if you cant really deliver results on the pitch (same as real-life)

Very little, i think the signing on fee is deducted immediately.

It is quite simple once you figure it out, if you offer to sign a player for £12.5m in this set up:

£2.5m transfer fee upfront

£10m over £48 months

Only the £2.5m will initially be taken from the clubs bank balance; from your transfer budget however, £5m will be initially taken away, because of the fact that in the next 12 months you will be paying out £2.5m to the other club. Only the initial fee + one quarter of the 48 months fee will be taken from your transfer budget.

In general, the best scenario for these types of transfers if for when you're say in the Championship and trying to push onto the premier league, or trying to break into the top 4. It allows you to spend behind your means and speculate to accumulate. It can be rather dangerous to do when trying to use it just to stay in the premiership.