Explained where Newcastle United £20m Miguel Almiron transfer fee will end up
An interesting insight into where the cash paid by Newcastle United for Miguel Almiron will end up.
The player currently on Tyneside to complete the medical and sign on at NUFC, with a reported £20m ($27m) being paid out for the player.
It will be the largest fee paid by Newcastle in their history but at the other end of the deal, the amount of money generated by the transfer is being talked about as ‘unprecedented’, with the £20m almost double the figure paid for any player leaving the MLS.
Compared to the fast and loose Premier League way of doing things, where every club acts alone, in the MLS there is a very tight relationship between the clubs and league. Including/especially when it comes to transfers.
In such a transfer as Almiron’s the MLS will get a cut of the £20m/$27m, not all the money goes to the club.
First of all you need to add up how much was paid out for the player by Atlanta, this being $8m to buy Miguel Almiron from Argentine club Lanus, then also the wages over and above what the MLS funds for ‘designated’ players, those extra wages paid by Atlanta over the past two seasons amounting to $3.9m roughly.
You then take those $11.9m Atlanta costs to buy and pay the player and subtract from the $27m Newcastle are paying, this leaves you with $15.1m ‘profit’, which is split between club and league.
Atlanta get 75% ($11.3m) and the MLS 25% ($3.8m).
Then you add back in the original transfer fee Atlanta paid for the player and those wages, so in total out of the $27m, the club will get $23.2m ((£17.1m) 75% share of the profit from the transfer and the fee and wages they’d paid out). The MLS getting the other $3.8m (£2.9m).
All of these are ballpark figures but a good guide to how it works for the MLS and individual clubs.
Atlanta United blog Dirty South Soccer then explain another element/benefit for the club, as well as explaining how the owner of a club can’t just take out profit from player sales:
‘Atlanta keeps $23.2M, and importantly, has the option (which they will certainly take) to use $750k of the transfer profit as General Allocation Money (essentially more spending power towards the team’s salary cap).
Something else of note, is that league rules prevent the club’s owner from simply pocketing the remaining profit on a sale such as this.
After pulling out the General Allocation Money, the remaining amount must be used either to pay for the costs of other designated players (e.g. new signing Pity Martinez, or Josef Martinez’ new wages), or by way of investment by a club in an area it otherwise would not have spent funds on (e.g. a new training facility).’
One thing is for sure and that is the MLS way of doing this is very different to the cloak and dagger way individual Premier League clubs operate, where these days they invariably appear to do everything they can to prevent anybody knowing what any player was sold or bought for.
I’m assuming that with the MLS way of doing things, we’ll end up getting a pretty clear idea of how much Newcastle paid for Miguel Almiron.
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