College Wolf:
Ok, I've got some salary related questions regarding the sport of soccer. I've only been following for a few years, and definitely do not know anywhere near as much about soccer as I do about other sports. Can you help?
Oh boy, oh boy! A chance to return at least part of the favor you did me with writing that article about the T-Wolves' financial situation.
1) Say a player signs a contract and then transfers to a different club. Does his new club still have to honor his original contract completely?
The most important thing you have to understand when talking about the european sports enviroment from a financial viewpoint, is that we do not have anything that resembling your intra-organisational systems of rules governing the contractual relations between players, teams and leagues (like the collective bargaining agreement). We had such systems established, basically to protect small market teams from being stripped from all their good players by deep pocketed clubs, but those rules were ruled to be an infringement of the players personal right to choose his profession and place of work and thereby illegal by the European Court of Justice in the famous \"Bosman Ruling\" from 1995 (to be honest, this case was far more complicated than this, but it will do for the moment). That means, that every contract between a team and a player is solely governed by civil law, much like the working contract of me, my younger brother and every other European.
Just like I said before, there is no contractual security for a player until a clause in his individual contract, which is governed by civil law, says so. Nonehteless, from this standpoint contracts are quite similar in the USA and in Europe: Most contracts are guaranteed ones, binding the player to the club which has signed him until the contract expires, turning the player into an unrestricted free agent. If a player wants to change clubs or a club wants to prey a certain player from another (mostly a coincidence, cause who would want to get a player who doesn't want to play for you after all?), someone needs to buy him out of his current contract paying a so called \"transfer fee\".(either the player himself - or in near to every case his new club). Some players have clauses in their contracts that lay down a certain amount for a transfer fee or have negotiated some other opt-out-clause (e.g.: \"Player can always transfer to a Spanish club without need for a transfer fee), but most contracts are fully binding, making the amount of the transfer fee freely negotiable between the parties involved. But since there a no standart contracts for players and they are subject only to \"basic\" civil law, almost every weird opt-out, transfer or similar clause is thinkable, depending on the bargaining power of the parties (clubs, players, agents) at the moment the contract was closed. Nonehteless, I have never heard of any contract featuring a clause that would force the club that snatches a player from another club to take over the original contract of the player as well. Besides, that would be stupid by the player, thinking that if another club was that interested in his services to pay his current club unbelieveable amounts of money, he would also like them to pay him some higher salary than his old club did.
That is why in virtually every case thinkable a tranfer would work like this: The interested club negotiates with the current club a transfer fee (if there was none laid down in the player's contract) to be paid to the current employer. Once the fee is paid, the original contract is terminated amicably by the player and his (now) former club and then the player negotiates and signs a completely new contract with his new club.
2) Who get's the transfer fee? Does the owner of the old club get all that money, or does the player get some too?
Just as stated above, the current club of a player wants to be compensated for the loss of the player, otherwise they won't terminate the binding contract with the player, preventing him to change clubs. Therefore the entire transfer fee goes to the current club, although it has become common in the leagues to give the player an additional handsel for switching teams. But this sum is not part of the transfer fee.
Another thing you have to understand that in most European leagues, with the execption of a few clubs, there is no \"owner\" of a team like in the USA and the teams therefore can not be considered \"franchises\". Based upon a system as old as centuries, most of our clubs are still to be considered \"voluntary associations\", although they pay some of their members to be part of the association. Therefore they usually have a directorate, a manager or secretary (whatever word you would prefer), a treasurer and so on, but there is no owner, because the club is owned by the members of the association, which can be thousands and even millions of commoners like you and me. Therefore, transfer fees go into the capital of the association which are then used to fund benefits for the members, such as gyms and other sporting opportunities.
What's the most expensive transfer ever? Was it Shevchenko to Chelsea last year? Something like over 50 million?
As far as I know - because most times, the clubs try to keep the exact sums secret: The highest transfer fee ever paid was 72 Million Euros (~100 Million $) when frensh soccer idol Zinedine Zidane was transfered from Juventus Turin to Real Madrid in July 2001.
4) How many times can you transfer? Once per contract? Once per year? As many times as you want, providing a new club is willing to pay the fees?
I guess most of this question is answered by the explanations I made to question 1): It depends on the contract and the clubs involved. If the player likes to change teams and one club is willing to pay what the current club demands, the player can be tranfered as often as thinkable. But it all depends on what the teams negotiate, since every transfer depends on the willigness of the current team to terminate the actual contract (unless the player is a free agent, of course) or on the opt-out-clauses in the player's contract.
I hope this answers your questions. If not or you can think of other ones, I'll be glad to help!