27 June 2024
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How football clubs calculate the 'transfer' value of young players who are out of contract

To The Point
(5 min read)

Sky high transfer fees have become a huge talking point in football, with clubs trying to maximise their income but reduce their spending to meet financial rules. But what happens when a team is trying to snap up a young player who is out of contract with his current club? The rules vary depending on the situation, what league the player is in and which country they are heading for, but in every case the new club runs the risk of a tribunal deciding the price for them. Here, Erin Grieve looks at the rules from a Scottish perspective and sets out the process to be followed. 

Most people will be aware of the eye-watering sums spent by football clubs on players with transfers often being described as "club records" and the larger clubs paying as much as nine figures for some of the biggest names in the game. There has of course been a significant amount of discussion recently concerning the Financial Fair Play rules and the regulations which govern club spending. In addition to signing players in the traditional sense, clubs can also be entitled to payments even when a player's contract has expired.

The 'development fee'
How much will it be?
The tribunal's decision is final

Next steps

Our team frequently acts in contentious sport matters and has been instructed by a variety of football clubs and other sporting bodies to represent them in disputed hearings and arbitrations. If you have a query in relation to this issue, please get in touch with one of the key contacts.

To the Point 

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