by Seal »
13 Jun 2011 09:20
Royal Rother soggy biscuit Royal Rother Liverpool are paying nearly double the true value of these young English players.
But what is a true value?
Keep in mind that we talking about an industry with almost no 'true values' so to speak. Merely a satisfactory middle ground between 2 parties with one feeling adequately compensated and one acquiring someone they need.
I think the Andy Carroll transfer really underlined this more than any other transfer.
Very fair point. I just think that Liverpool have gone in with offers that are way above what these players might normally have gone for in order to grab them before anyone else (Man City) could enter the market and sneak them away, just because they can.
So yes, it's a true value because the transaction has taken place (and fair play to Liverpool for being decisive) but the fees feel distorted by desperation to me.
The other point to note is that all these signings in the 18-22 age bracket and are signed on long term contracts. The logic is therefore that if a players' peak is at say 26-29, then there is a good chance for a significant if not greater resale value. Even if you can not recoup the fee in transfer revenue, then hopefully the club will have got 5 years good service out of the player in any case. Long term contracts mean that the fee can be amortized over a longer period, reducing the hit on the P&L, and as the players are signed at a young age, even doubling their salary would not put them in the top quartile of earners the club.
Therefore, whilst no question that they are huge transfer fees for young players, there is a business logic behind it.
The reverse logic is why a player of say Drogba's quality will (if sold) only go for £10-12m.
