Economic rights to footballers contracts

[Sir Tokyo Sexwale]

Was looking at James Rodriguez' contract details today....check this out:

 

On 6 July 2010 Rodríguez was signed by FC Porto for €5.1 million, with 30% economic rights retained by other parties. He signed a 4-year contract with a €30M release clause.

 

Porto later re-sold 10% economic rights to third parties.

 

In November Porto sold 35% economic rights (half of 70%) to Gol Football Luxembourg, S.A.R.L. for €2.5 million.

 

On 17 May Porto bought the remaining 30% economic rights from Convergence Capital Partners B.V. for €2,250,000, made Porto once again held more than half of the economic rights of 55%.

 

On 13 June, he signed a new 5-year contract and the release clause had increased to €45 million

 

On 1 February 2013, Porto also bought back 30% economic rights of Rodríguez from Gol Football Luxembourg for €8.57 million, (by selling 47.5% economic rights of Diego Antonio Reyes for €3.5 million) which Porto sold 35% of Rodríguez in November 2010 to Gol Football for €2.5 million.

 

On 24 May 2013, it was announced that Rodríguez had joined French side AS Monaco for a transfer fee of €45 million thus making it the second most expensive transfer in Portuguese football, behind former teammate Hulk.

 

 

Hulk cost more?!!

[John am Rhein]

I'd like to trade derivatives in this

[Earl Hafler]

I'd like to trade derivatives in this

 

http://static.publico.pt/homepage/infografia/desporto/transferencias/

[£440,000]

I might make Gol Football Luxembourg, S.A.R.L my second team.

[Duncan Disorderly]

None of that makes any sense to me, but haven't we been here already with Tevez and Mascerano?

[growler]

This is just wrong. Speculators can 'hold' a stake in a player??

 

How is Suarez doing more to damage football than this??

[RP]

More and more transfers are being financed by specialist institutions which behave like hedge funds.

[£440,000]

More and more transfers are being financed by specialist institutions which behave like hedge funds.

Some of the same people as in hedge funds probably too, no?

[Raj]

Some of the same people as in hedge funds probably too, no?

 

Yes. Jorge Mendes is knee deep in this

[RP]

Some of the same people as in hedge funds probably too, no?

 

 

Yeah.

 

I was going to say they are hedge funds, but they're not really - they act like them in many ways.

 

It'll be interesting to see just which key event causes this whole new industry to implode - there'll be something.

[Earl Hafler]

Well we can't trust FIFA to deal with it.

 

On the link i gave earlier, there's a guy called Gary Stern who has 10% of Walter's rights. He's listed as a director of several companies including catering, property development and others who don't appear to have any real function.

One of the other guys involved with a couple of Dutch companies who have invested in Porto's players apparently drives a Ford C Max and lives in a terraced house in Purmerend ( a nice little town known for fine pottery )

[Maldini]

There's an "Irish" company that owns partial rights to a load of Portuguese players as well. I reckon there's all sorts of dirty money going through Portuguese football at the moment.

[Leo No.8]

Shouldn't be allowed all that,

[muleskinner]

Peter Kenyon is into all this these days isn't he?

[drdooom]

So If one of these buys a players rights for £50 million and tells him to go play for Chelsea, how does that impact the FFP thing?

[Maldini]

So If one of these buys a players rights for £50 million and tells him to go play for Chelsea, how does that impact the FFP thing?

 

Tends not to happen that way, a big money move to a bug team is the end game of this kind of thing. They buy a player's rights when he's a prospect, move him to a club with a good reputation for bringing through talent and then when he moves to a big club they take their slice.

[Euphrates]

Hulk cost more?!!

 

Looks like it.

 

http://en.wikipedia.org/wiki/Hulk_(footballer)#Zenit

 

his transfer fee caused a lot of debate and a great stir since Mitrofanov, General director from Zenit denied publicly.[18] Russian media R-Sport even claimed that Mitrofanov had shown the media the sales contract and the fee on the contract was €40 million and not €60 million.[19][20] However Porto also confirmed in its unaudited quarterly report in Q1 2012–13, that, the club did not pay for third parties ownership (15%), agent fee nor solidarity contribution (5%), which all normally included in the transfer fee