An Insight into the World of Football Transfers

This is an interesting, unique and controversial area of modern sport that deserves further examination. Football transfers are, of course, not a new phenomenon. A series of important developments, however, such as the modern and increased commercialisation of sport, as well as the implications and consequences of the decision in the Bosman case, have created a complex framework of individuals, regulations and financial opportunities that determine the present situation. 

Those who love football and watch the sport on a regular basis, are well aware of the so-called 'transfer windows', which allow football clubs to buy and sell players, with a view to strengthening their squads and/or making a profit. At this juncture, there is a perennial battle between the two models currently analysed by experts: profit maximisation v win maximisation. Although these two models are not the subject of the present analysis, our readers need to be aware of them, as they determine, to a certain extent, the transfer policy of individual football clubs.

People have now become accustomed to such football transfers and are aware that, twice a year, their favourite club will enter important negotiations for the purchase and/or sale of individual players. Although the official transfer windows open twice a year, negotiations for the sale and purchase of players never stop. Provided that the relevant regulations on intermediaries are followed (see a relevant post here: http://lawtop20.blogspot.nl/2012/08/football-agents-tapping-up-business-as.html?view=magazine), football clubs usually make their wishes known to their targets quite early in the season. Sometimes there is direct contact between clubs and players and sometimes such contact is effected via third parties, to ensure there is confidentiality and discretion. Hence, it is usually a web of no more than 5 people that are aware of a particular negotiation between a club and a player. Because of this confidential process and the utmost discretion required at all times, most of the 'rumours' in the media are usually proven wrong. It is not in the best interests of a club to 'advertise' widely its targets or to 'inform' the so called 'sources'. 

From experience, it is submitted that a Chief Executive Officer would never discuss a particular deal with anyone other than the player in question and/or his intermediary. There are obviously exceptions to every rule, but in general terms, discretion and confidentiality are observed. This is true in the majority of the situations, hence, there is not usually enough information on a particular negotiation between a club and a player. 

In the premises, it must be stated that sometimes you see the other side of the coin too. From experience again, there will be circumstances where, for personal and/or commercial reasons, players or their intermediaries would 'feed' specific information to the press. This would obviously generate a rumour that a particular club is interested in a player (where as a matter of fact it is not). The consequences of such 'rumour' are obvious and you do not need me to explain them to you. What you need to understand, however, is the fact that a football club cannot and should not confirm and/or dismiss such 'rumours, everytime they appear in the media. 

I have also come across situations where intermediaries (sometimes without a license) would contact journalists to inform them that they have information about a specific player and a club. Sometimes such intermediaries do not even represent the player in question and you may safely conclude that this situation arises mainly because of personal reasons. A prudent, professional and ethical intermediary will not discuss his client's negotiation details with journalists or other third parties. In the premises, journalists have also an important role to play (with reference to the information they provide to the public). My late father was a knowledgeable and well respected sport journalist and he would always say to me that the reliability of a journalist's source, determines the accuracy of the information provided to the public. Whether this takes place today, is a different matter altogether.

Moreover, it is submitted that there are situations where some true pieces of information (that relate to a club and a player), would be 'released' to the media. There are several recent examples and people sometimes are in a position to accept the premise 'if there is smoke, there is fire.' It is true, that a negotiation between a club and a player could begin months before a transfer window opens. It is also true that sometimes a player would offer an undertaking to the effect 'yes I am interested.' This, does not mean, however, that an agreement will be reached. Hence, I always advise relevant parties not to speak, about this negotiation process, to anyone, at least, not before pen is put to paper. The public are never in a position to be aware of such details, but they are always in a position to be judgemental. Hence, if a player, for example, says that this is not the right time for him to join another club (when he intentionally and knowingly was implying all along there was such interest for months), automatically the player's image could be damaged. It creates a picture of unreliability, distrust and inconsistency and sometimes makes any future negotiations very difficult. There is no benefit (unless there is a hidden agenda) for a player to 'confirm' that 'he was thinking about it', but in the very last minute he had to perform a 'U-turn' because this was not the right time. When a player starts contemplating a transfer and commences discussions with interested parties, such discussions must remain absolutely confidential, as the consequences, otherwise, could be severe. In some situations, negotiations may collapse and it is always the player who ends up being unreliable and inconsistent, because the deal did not go through (otherwise people would think there was no negotiation in the first place and it was all done for commercial reasons). It is, therefore, prudent, for advisers to ensure that the information regarding their clients remains confidential and such advisors must ensure they keep their clients on a short leash (at least where public appearances and statements are concerned). 

Finally, it is submitted that the world of football transfers is complicated and controversial. It requires prudence, patience, experience, strategy and good manners. Sharp practice must not be tolerated and accepted and usually it is not, as the grapevine in this business is far too effective. Reliability is the key component, as is honesty. There are some true pieces of information out there, but they are few and far between. Keep this in mind and always keep an open mind.

5 June 2017

Dr Gregory Ioannidis

The author is a sports lawyer and an anti-doping litigation expert. He is a former FA Registered Lawyer and he has acted on behalf of several football players and clubs around Europe.