Hey guys, I've been catching up on your discussions around transfer process. I have done a fair amount of work on business deals, and I think the player transfer process is much closer to an M&A process, than it is to buying a house as some have mentioned.
Main reason is the number of financial dimensions that need to be solved. So on just the deal between player and club, you need to agree on the basic pay, performance linked-pay, signing-on bonuses, retention bonuses, exit-related clauses, non-financial benefits, governing laws.
Then between the clubs, you need to agree transfer fees, payment schedules, add-ons, sell-on clauses, buy-back clauses, condtions for a failure during the medical, agent fees, transition currency and FX protections, and the governing laws.
Parties on both sides to present their positions on each of these terms. The negotiation then becomes around what the expected total value is for each party in the negotiation, and they can flex different terms to find an outcome that creates more value for themselves without leaving the counterpart feeling cheated. So for example, on the negotation between a player and the buying club, the team might be able to lower their wage offer by availing a sign-on bonus or a performance bonus. Getting to what this basket looks like will require calibration by the team and player. The team can for example send a first offer of 100k salary, 2m signing bonus, and 30k potential bonus. If the player rejects, they can send 150k salary 1m signing bonus, and 10k potential bonus. These two offers might end up being equivalent in the team's modeling, but the player might value achieving a higher wage band ahead of future negotiations.
You are of course doing all of this in a context where players are comparing competing offers, and you are also assessing alternatives. This requires a lot of process discipline - which includes a clear plan on what you aim to pay vs the max you are prepared to pay, interactions to present packages, continuous modeling of these options. Which means lots of meetings with finance and legal, in addition to your normal scouting and data teams.