Man City ‘profit share’ agreement detailed as Antoine Semenyo transfer terms dissected
Manchester City beat several of their Premier League rivals to secure a deal for Antoine Semenyo.
It was previously revealed Semenyo had a £65million release clause in his Bournemouth contract that could be activated before Saturday (10 January).
However, Man City agreed a deal to sign Semenyo outside of the release clause.
The Athletic’s David Ornstein reported on 8 January the transfer is worth an initial £62.5m, with £1.5m in add-ons and Bournemouth to receive 10 per cent profit of any future sale.
Meanwhile, Pep Guardiola’s side will pay the fee across 24 months rather than immediately for the 26-year-old.
Why Man City agreed to pay higher fee for Antoine Semenyo
Former Man City financial adviser Stefan Borson exclusively told Football Insider Bournemouth are set to receive more money from the Semenyo deal after allowing the Manchester giants to spread the cost over a longer period.
Semenyo has taken the no.42 jersey at Man City following in the footsteps of former Etihad Stadium favourite Yaya Toure.
Speaking exclusively to Football Insider about Semenyo’s transfer fee, Borson said: “It’s not that surprising when you break it down from a financial perspective because I think, as I understand it, to do the release clause you needed to pay it all effectively upfront or within short order.
“City wanted a longer payment period. They could have got funding for that commercially. It probably would have cost them let’s say five or six per cent, maybe seven per cent let’s say of the fee.
“Instead, what they’ve done is they’ve done a deal to give Bournemouth a little bit more and to give them a profit share if he ever gets sold at a profit, which feels unlikely.”
How Semenyo deal will impact Bournemouth financially
Borson insisted Bournemouth will be pleased to receive a “bigger headline amount” from Man City for Semenyo.
“They’ve effectively purchased a financing from Bournemouth, and they’ve paid compensation for it within that deal,” said Borson.
“Bournemouth are happy with it because they know they’re going to get the money, and they get a bigger headline amount.
“They can bank actually a little bit more in terms of PSR and SCR profit because the headline number is bigger, and they get this potential option on future sales, so I think it works for both parties.
“I don’t think it’s a major surprise that they’ve tweaked around the edges.”
Semenyo scored on his Man City debut against Exeter City on Saturday, where Guardiola’s side cruised into the FA Cup fourth round following their 10-1 victory at the Etihad.
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