I trust Powell isn't on a Harry-style percentage of transfer profits...

incorruptible addick

I'm sure he isn't.

But if he was, he'd make a tidy sum by holding another summer clearout, as almost every player he's brought in must now be worth dramatically more than when they arrived !

One of the lesser discussed aspects of the Redknapp trial is that although it is perfectly legal, the arrangement he had with Mandaric to take a percentage of transfer profits absolutely stinks.

SuedeAdidas

I agree.

I'm not sure how widespread that kind of arrangement is but surely there will always be conflict of interest?

Huskaris

You would have to hope that if there is any "transfer profit" clause it is completely insignificant compared to a league final position clause or yeah you would have a horrible conflict of interest.

ShootersHillGuru

Firstly I doubt CP is but is it really that outrageous ? A manager is encouraged to do his homework and look at potential in a player. Get that player at low cost and then using their coaching ability go on and make that player better and thereby the club a potential profit. seems like good business all round to me provided that there are enough checks and balances in place.

cafcfan

I think this kind of contract is very common. Dowie had a similar arrangement at Palace - this from the court case - "4.1.4 In the event that the [Club] sell a player [Mr Dowie] has brought to the team and the sale occurs before the end of this Agreement [Mr Dowie] will receive 5% of any net profit the [Club] makes from the sale".

Salad

although we don't have much idea of how much the players cost, rumours suggest quite a few cost around £200k-£400k

Huskaris

Managers actually know very little about the wages of a player, and have very little say in the amount paid for that player... In fact it was Redknapp himself that said that when he was interviewed by Alan Sugar.

The manager says they want a player and the board tends to take it from there.
I'm sure it varies from club to club but Redknapp was talking about Tottenham in this case, dunno about Pompey...

ShootersHillGuru

Curbs knew how much his players earned and what they had for breakfast in the morning. Not knowing might well be the case in the premiership where the bean counters run the show but I doubt that there are many clubs in league one where the manager is not heavily involved in the whole signing process.

C.Walsh'sLoveChild

Hasnt Holloway got this deal at Blackpool? I remember something mentioned when the sale of Charlie Adams was first announced

nth_london_addick

I think u will find it is a common place in the contracts if most managers , I would wager that all of them proberly have it in place

legaladdick

Holloway admitted that he was on a percentage of Adam's sale: "If I discover a player, sign him and he is later sold for a huge sum - earning my employer millions - I should get something out of it".
But I note that there is no 'failure' clause so that if they buy a player who is rubbish and sold at a loss, does the manager then pay the club a percentage of that lost money? Now why do I doubt it?

golfaddick

great thinking legal my man.............that would sooon concentrate a managers mind !!

oohaahmortimer

thought what legal addick said that surely it would be fairer if there was a net p+l on these player buys and sales and chuck the extortionate wages in as well to make it fairer then see how much profit these managers would end up with

as it stands , it sounds like a free bet for a manager can't lose but can only win

Ormiston_Addick

As legaladdick says managers want this deal to work in their favour for their "polished diamonds" but don't want it back the other way on their "polished turds" - no surprise there then.

Imagine if Pardew had had to take financial responsibility for McLeod, Varney et al?

Stu_of_Kunming

So I assume none of you accept a xmas bonus when you're employers are doing well? If so you must be very happy to give them a xmas bonus if the company is failing.

tangoflash

thought what legal addick said that surely it would be fairer if there was a net p+l on these player buys and sales and chuck the extortionate wages in as well to make it fairer then see how much profit these managers would end up with

as it stands , it sounds like a free bet for a manager can't lose but can only win

Except when it ultimately costs him his job?

Mortimerician

Holloway admitted that he was on a percentage of Adam's sale: "If I discover a player, sign him and he is later sold for a huge sum - earning my employer millions - I should get something out of it".
But I note that there is no 'failure' clause so that if they buy a player who is rubbish and sold at a loss, does the manager then pay the club a percentage of that lost money? Now why do I doubt it?

Interesting. Presuming that his percentage of the profit excludes the minor matter of wages. So, he'd be incentivised to bring "low" cost players into the club on a high salary.

oohaahmortimer

thought what legal addick said that surely it would be fairer if there was a net p+l on these player buys and sales and chuck the extortionate wages in as well to make it fairer then see how much profit these managers would end up with

as it stands , it sounds like a free bet for a manager can't lose but can only win

Except when it ultimately costs him his job?

and he gets his contract paid up !

lolwray

Holloway admitted that he was on a percentage of Adam's sale: "If I discover a player, sign him and he is later sold for a huge sum - earning my employer millions - I should get something out of it".
But I note that there is no 'failure' clause so that if they buy a player who is rubbish and sold at a loss, does the manager then pay the club a percentage of that lost money?
Now why do I doubt it?

should apply in any fair business arrangement ,and lets not forget how the research into theses signings happens ...would the scouting network get lumped in ? as its not just the "manager" who "discovers" signings...wouldnt be at all suprised if agents claim a "sell on percentage" too ...again doubt if theres a "clawback" on deals where clubs make a loss as potentially in the cases of torres and carroll

MuttleyCAFC

It does seem ridiculous to me- as you say, if a manager finds a gem but also a dud, one may cancel out the others. Surely the reward the manager gets should be when a new contract is negotiated as doing good business is what he is there to do and all the pluses and minuses can be weighed up.

Giving a manager a cut could potentially encourage them to sell even if it is against the best interests of the club at the time - for instance- if I bought Wiggings for £250k and a club offers £7m - 10 per cent of that is £700k.