Imagine John Stones was sold for £40m this summer

That would leave Everton owing us just short of £6m. Assuming the £40m fee was paid over a period, our share would also be paid over a period. However, we could borrow the balance of the fee using the sum outstanding sum as a security for the loan, or we could buy players on the same payment structure as our windfall so that our transfer payments fall due when our receipts from Everton fall due.

Mr Cryne was a little cryptic during recent interviews, but it seemed possible that he might look for an exit once Stones is sold. I do not expect him to take back the cash that he has invested to date. Instead, I expect the Stones money to be his golden goodbye. The Stones money seems to be his opportunity to hand the football club back to the community, and remove the burden of ownership of the club, from this shoulders. If this scenario holds any water whatsoever, and as I am writing these words I become less and less convinced that it does, how could the club encourage a broad base of ownership throughout the community, in the same way at the old Barnsley FC had many shareholders across the community? Furthermore, how should the new club organise its off the field management structure?

Scenario/Role Play

The club decides to have supporter representation on the new board, and the directors decide to hold interviews in order to determine which prospective board members would best represent the fans, but who would also bring the right mix of new skills to the boardroom. As part of that interview process, the directors ask you how you would invest our unexpected Stones windfall. How would you answer.

 

Why would it be short of £6m out of interest?

 

its all hypotheical in the extreme. we all saw the accounts last week. we are losing money daily and are propped up by the current owner.

any new owners coming in have a stark choice of finacing the losses or finding some way of breaking even. i assume promotion doesnt even make that a certainty

 

We could always try to tomorrow increase our revenue streams.

 

In the absence of a multi millionaire fan hiding away, the Stones money has to be used to replace Mr Cryne's underwriting of our debt/overdraft however you term it.

 

you should email the club , i bet they've not thought of doing that.

 

Or living in our means.

 

I reckon his value went down since the summer

 

We've got to pay it somehow

 

£40m minus the original fee (£2.2m) multiplied by 15%.

 

Ta red rain. I didn't realise that the original fee would be deducted

 

I might be wrong but it won't be minus the £2.2m.

 

Aren't these clauses written as a percentage of any future PROFIT gained from a transfer, rather than the full fee?

 

Give it to WSB. They'll build a scoreboard out of stickers.

 

It's 15% of the transfer fee isn't it?

 

We would have to see a copy of the John Stones transfer agreement in order to determine finally whether the 15% add-on is calculated on his sale price or the profit. Given that it is unlikely that that will happen, we will have to determine what is most likely. In my opinion, the most likely scenario is that the 15% will be calculated on profit. My reason for believing this is that otherwise Everton would be required to pay a further 15% on that part of the deal that they have already paid, the deposit if you like. If you bought a car on hire purchase, you would not expect to be charged interest on the deposit that you had already paid. I believe that this logic also applies in this case.

There has also been some confusion about future transfer fees involving John Stones. Some posters have stated that we will be entitled to a share of any future fees received by his next club. This would only be true if Everton built into his contract for sale a share of future profits on the same basis as our agreement with Everton. This is less likely in the event of a large fee, but assuming they did do and stones next club subsequently sold him, say for £60m, then the calculations would be as follows:

Everton

Third party transfer fee £60m less transfer fee paid to Everton £40m = £20m x 15% = £3m

Barnsley share of the above add-on fee

Everton add-on £3m x 15% = £450k

This summarises how I believe the transfer agreement is designed to work. In my view, it is the only way that the deal makes perfect sense. The difference is only £2.2m x 15% (£330k), and the difference of opinion has only come up because Supertyke asked me about my calculation, but nevertheless, I think that I is worth the explanation.

 

IMO 2.2m is taken from the fee then shared out ,eg 40m - 2.2m = 37.8m ÷ 15%

 

I'm not going into your fancy stuff But if Stones goes for 60 million and the Profit sell on is 15% then Barnsley would be looking at a lot more than your saying.

It's normally Price of transfer minus what the initial fee was. So If he goes for 40 million and it was 2 million that would be 38 million.

38M divide the profit sell on percentage, so 15% say.

38,000,000 divide 15% = 5,700,000

Making the sum of the deal 5,700,000 plus the original fee of = 7,700,000.

The club rightfully so should be sticking two's up at anyone that question them over the sale with that Crazy figure.

 

It's a little bit different but the two articles below are showing how the system works for Future transfers rather than profit of Transfer percentages.

http://www.dailymail.co.uk/sport/fo...l-lands-Bournemouth-massive-5-75m-payday.html

http://www.skysports.com/football/n...ut-on-around-11million-if-gareth-bale-is-sold