Finance guru: Raiola and his clients will be ‘delighted’ by Newcastle verdict
Mino Raiola’s proposal to scrap transfer fees in football could lead to vastly inflated wage bills for the likes of Newcastle United.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the Dutch-Italian super agent’s radical suggestion.
Fifa has proffered a cap on payments to agents that would limit them to 10 per cent of a client’s transfer fee or three per cent of the value of a new contract.
But per the Daily Mail on 20 December, Raiola claims “the whole system” needs a reboot and “football should abolish the transfer fee altogether.
Plumley analysed Raiola’s proposal and ruled out an American-style draft arrangement in football.
The Sheffield Hallam University expert also predicted that Newcastle’s wage spending would balloon under Raiola’s system.
“The American system is interesting,” he told Football Insider‘s Adam Williams.
“The American system works because it was embedded at the start and all the clubs are invested.
“We can’t implement a draft system in this country. There are lots of sticking points when it comes to moving to that system.
“In terms of wage spending, there is a potential that it could increase if you did scrap transfer fees.
“Clubs divide a transfer fee by the length of the contract and that is the amount they record in the accounts. That’s amortisation.
“If you remove transfer fee, you remove the amortisation and you can increase wages as a result.
“That would benefit players, so Raiola and his clients would be delighted. There is a potential vested interest there.”
Newcastle may look to flex their financial muscle in the January transfer window as they look to avoid relegation.
Plumley’s fellow finance expert Kieran Maguire told this site in October that the Magpies can spend £205million and still comply with financial fair play.
In other news, pundit tips Odion Ighalo to fire Newcastle United to safety on one condition after Sky transfer update.