If Adu Transfers, DC's Gain?

[Bolo]

Quick question, if Adu transfers to Parma for lets say 5M, how much of that does DC stand to gain?

[jason1551]

$150k.

http://blog.washingtonpost.com/soccerinsider/2007/07/adu_clavijo_expansion.html

From what I understand, if MLS sells Freddy Adu overseas, Real Salt Lake would receive at least $400,000 in allocation money from the league, but, based on the terms of last winter's trade, D.C. United would get $150,000 of it. United would also receive a draft pick, which at the moment, would be a third-rounder. If Adu sticks around all season and scores a bunch of goals, that could become a second-rounder.

[Bolo]

$150k.

http://blog.washingtonpost.com/soccerinsider/2007/07/adu_clavijo_expansion.html

Thanks Jason, too bad for the teams that it is not scaled to the value of the Transfer. Seems kind of strange RSL & DC would split 550k no matter if the transfer was 1M or 10M.

In any event, thanks for the info....

[Bootsy Collins]

Seems kind of strange RSL & DC would split 550k no matter if the transfer was 1M or 10M.

Hm. I didn't read it as 550k -- I read it that they'd split 400k (RSL would get 400k, but then had to give DC 150k of it); but maybe that's not right?

But your main point is the same, and it's presumably because the teams don't own the player contracts. The league does.

[Bolo]

Hm. I didn't read it as 550k -- I read it that they'd split 400k (RSL would get 400k, but then had to give DC 150k of it); but maybe that's not right?

But your main point is the same, and it's presumably because the teams don't own the player contracts. The league does.

Yes, you are correct it's 400k total with DC receiving 150k of that, thanks for the catch. You are right about the league owning the contracts but it would seem that the players transfer value would correlate to the loss of value to the team and the higher the transfer the more the teams in question should be reimbursed. (In a perfect world)

Edit: Then again perhaps RSL should have to pay the league this year.

[Stan Collins]

Of course, Goff is only talking about the allocation value for Adu.

When a player is transferred, the club (they changed this rule last year starting with Clint Dempsey), gets the lion's share of the return (I've heard two thirds and three fourths, according to Ives G and Frank Dell'Alpa respectively). They cannot use this money against the salary cap, but they can spend it on anything else club-related: promotions, the youth side, scouting, coaching staff, a Designated Player, etc.

It has not been said, to my knowledge, how much of this money DC United might get.

[Bolo]

It will be interesting to do a postmortem of the the Freddy Adu commerce impact if/when he's moved.

[Huwiler's Odoreaters]

It will be interesting to do a postmortem of the the Freddy Adu commerce impact if/when he's moved.

Goff says it's looking likely: http://blog.washingtonpost.com/soccerinsider/2007/07/urgent_freddy_to_benfica.html

No Adu to RSL but all else being equal (Adu has the same U20 performance and goes to Benfica): DC gets around $400k for the transfer. DCU takes a $150k cap hit.

As is: DC receives major allocation (opinions vary but around $250k) and $150k (?) share of transfer ("future considerations"?). So $400k.

Hard-to-account: Does DCU do the Rimando trade and clear out $130k in salary? I suspect Rimando was going somewhere, but would DC have been able to clear all his money off its books? Fred-Adu looks like a financial wash (what about on the field?).

On-field: If it would have been Adu or Fred, but not both (not proven): Fred has been better in his performance, but for a much better team than sorry RSL. Would Adu have stepped it up and delivered in the wing position that DC hasn't truly solved? Would Adu's U20 absence meant worse perfomances in that time?

I think DCU wins easily with the trade: it would be harder to start Perkins over Rimando this year (though would Rimando have given up that bad goal in the CCL against Chivas, and if not, would DC have won the CCL?). The money looks like a wash, Adu isn't much of a crowd draw, and were Adu to have left DC 2/3s of the way through the season, the wing problems may have been just what they are now, or worse.

Props to Payne and Soehn on this one. I think it turned out better than expected.

[NicktheGreek]

It will be interesting to do a postmortem of the the Freddy Adu commerce impact if/when he's moved.

There hasn't been much of an on field impact for either team involved. At least nothing earth shaking.

[BuffloSoldier]

Here's the money. (http://www.sltrib.com/sports/ci_6489289?source=rv)

[BigKris]

Here's the money. (http://www.sltrib.com/sports/ci_6489289?source=rv)

Wow, so according to that article, Adu's base salary in Portugal won't be any higher than it was here in MLS. Hmm... both MLS (in accepting only $2M in transfer money) and Adu (in accepting a salary that's the same as he makes now) both took substantially less than they would have hoped for in this deal... seems like Benfica is getting a pretty good deal on this, no? I wonder what's in the deal that we don't know about. Sell-on clause for MLS? Contract gives Adu options to move on soon?

[Sundevil9]

Wow, so according to that article, Adu's base salary in Portugal won't be any higher than it was here in MLS. Hmm... both MLS (in accepting only $2M in transfer money) and Adu (in accepting a salary that's the same as he makes now) both took substantially less than they would have hoped for in this deal... seems like Benfica is getting a pretty good deal on this, no? I wonder what's in the deal that we don't know about. Sell-on clause for MLS? Contract gives Adu options to move on soon?

$2M is a fair transfer deal. I'm glad that MLS got some reality mixed into their asking prices for players, especially for unproven players. Remember Benfica is essentially getting a player based on potential. Which is a great investment for them. Freddy's going because this is what he perceives as the next step for him, not because of the money. Good luck to him, I hope he can use it as a launching pad.

[Bolo]

There hasn't been much of an on field impact for either team involved. At least nothing earth shaking.

Yea, I was trying to avoid a play discussion, I was just curious about the commerce side.

Quick question do you think MLS sold future transfer rights for that 2M or retained some rights?

[lawrenceterp]

A full year (and hopefully multiple years) of Fred + allocation money >>>>>> a half year of Freddy. It's not even close really. In a league where money and allocations are so important, we made out like bandits.

[Primate]

In playing in Europe doesn't that help his work permit issues if he were to get good enough to transfer to EPL?
Maybe he thinks he'll impress enough, or he already has to justify a move.

[NicktheGreek]

Yea, I was trying to avoid a play discussion, I was just curious about the commerce side.

Quick question do you think MLS sold future transfer rights for that 2M or retained some rights?

All gone Mls wise.

[Sundevil9]

In playing in Europe doesn't that help his work permit issues if he were to get good enough to transfer to EPL?
Maybe he thinks he'll impress enough, or he already has to justify a move.

Not necessarily.

The two main issues that'll get a WP are:
1. 75% of National Team Caps (over two years, I think)
2. In an appeal process, prove that he's a really special player that'll make the English game better.

Also in the appeal process, they can point to Caps (if the player is fairly close) and argue that in time, the player will get to that plateau.

Regardless, it's a stepping stone for Freddy, but who knows where that last step is.