In a football transfer, the fee announced to the public is only part of the real financial burden a club takes on. A sound budget cannot be built without considering salaries, performance bonuses, taxes, agent fees, training compensation and exchange rate differences together.
In our article “The Financial Architecture of Football”, co-written with Mehmet Burak Baran and published in The Football Week, we examined the financial and tax structure of professional football from the perspective of both clubs and athletes.
What did we cover in the article?
- The real cost of a transfer fee
- The gross vs. net distinction in footballers’ salaries
- The impact of the end of net salary practice on clubs
- Tax residency of footballers
- Foreign currency contracts, exchange rate risk and the restriction on foreign currency contracts for Turkish citizen athletes
- The financial impact of performance bonuses and the importance of clearly drafted bonus clauses
Key message
Financial sustainability is now an integral part of sporting strategy. When contracts, taxes, cash flow and risk management are handled in a structure where the financial advisor and the lawyer work together, a predictable and healthy process emerges for both the club and the athlete.
To read the full article: The Football Week – The Financial Architecture of Football →
I also shared the article on LinkedIn .
To learn more about our services related to athletes’ contract and taxation processes, please visit our Athlete Financial Advisory page.
