Scott Brown’s injury-enforced absence from the team in recent weeks has at least taken heat of his contract situation but that will change in January, when he is back in the team and available to sign a pre-contract agreement. Neil Lennon reports that Celtic have met Scott’s terms but have declined to meet his agent’s demand.
Agent’s often have exclusive representation agreements with players which guarantee the agent a cut of any contract signed when the agreement is active. 5% of a four or five year contract for a top-earning Celtic player could easily reach £300k, or £360k including vat. This is a lot of money for the player to pay out of his after-tax income so what commonly happens is the agent uses his exclusive deal with the player to negotiate a pay-off from the club instead of acting for the player. Unlike the player, a club can reclaim vat and pays before, not after tax, so the same money going to the agent costs the combined player/club less.
It’s often the case, however, that the agent’s fee paid by the club has little resemblance to the percentage the agent would get representing the player. While a player has an exclusive deal with an agent, a buying club has three deals to agree: the selling club’s fee, the player’s wages and the agent’s fee.
Big agent fees don’t necessarily mean bad business for the buyer, as the agent may well have made a deal achievable at a purchase price which would not have been otherwise possible, but clubs are typically more reticent when it comes to paying agents to renew contracts for their existing players. One (then) SPL chairman told me he had a flat £500 tariff for such deals.
Artur Boruc concluded his last contract with Celtic without an agent. At the time he explained that he would need an agent if he was moving club but didn’t need one to negotiate a predetermined level on the Celtic pay structure. This would have saved Celtic money and might have earned Artur an extra bonus.
Scott Brown is not in this situation. If he is offered a contract of around £6m over five years, after 50% tax and 12% (?) national insurance (which Celtic and staff pay…), his take home pay from the contract will be considerably less. 5% of the contract could end up looking like 14% of take home pay after vat is added.
Celtic will also be alert to the dangers of precedent. If a player’s ‘advisor’ can get a significant pay-day out of a contract renewal there is no incentive for the player to conclude a deal with Celtic without an advisor, indeed, there is incentive to get one involved.
I’ve no information whatsoever on what is going on with Scott’s contract but the portents don’t look promising.
A couple of years ago we spoke about the excellent Why England Lose and its predecessor, Moneyball. Two books that sought to explain how to find value in football and baseball respectively. The Brad Pitt movie, Moneyball, based on the events analysed in the book, is now out. Not sure making a drama out of statistics is wise but I’ll need to check it out.
Read CQN Magazine for free online here. Subscriptions to the online copy are discretionary but you can contribute here. Old-school hard copies are available here from Magcloud.
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Anyone recommend a good bar in the centre of Manchester to watch said match tomorrow?
Swiss
Awe Naw
Now you have me worried. Are you saying you didn’t Awe Naw that Herald piece?
http://www.soccerex.com/events/global/
Duffield has gone with the Scottish Office, but he’s basically there for Soccerex, no? The Scottish Office won’t even have included Rangers among the recipients of the £750 grants. They don’t qualify, according to the criteria linked to above.
On the day before (potentially) the largest Public Service strike in a generation,
Chancellor George Osborne has announced in his Autumn Statement that public sector pay rises are to be capped at 1% for two years
George now your government is just taking the proverbial.
Tomorrow cant come quick enough now, unfortunately I fear this day of action will be the first of many.
Mrs Merton to Dirk Flatfoot……….
“So Dirk, tell me, why the long face?”
Regardless of how they themselves spin it, usually in the form of guff about selflessly protecting their clients’ interests, agents by and large are simply parasites, who take a fortune out of football.
Che – If you don’t mind me asking, what is it you do in the public sector? (thumbsup)
Swiss Tony says:
29 November, 2011 at 13:25
Anyone recommend a good bar in the centre of Manchester to watch said match tomorrow?
Swiss
ST –
Are there any bars there with working televisions?
Cylur
coorslad is Neil Lennon says:
29 November, 2011 at 13:25
I think they let you upgrade twice a season but you might have to collect your paper upgrade. Never tried it with a Euro ticket though.
philvisreturns says:
29 November, 2011 at 13:29
I dont mind at all Phil
Work in Health Service
Che – Will people suffer or die if you go on strike? (thumbsup)
Ylurc- are you coming down tomorrow?
Weather Update
philvisreturns says:
29 November, 2011 at 13:32
Nope
DBBIA —-
Was the No 9 Enigma looking like Licorice McKechnie ?
Cosmic Boy CSC —– Way down south.
CANAMALAR
Look on the bright side,BB hasn’t called youa moron yet.
Wear that badge with pride…..
Interesting article on Scotzine site about egg beaters antics during and after the game o nSunday. Some stating he stopped his car and ran out and tried to stick the nut on a gers fan.
Obviously knows there is no place at Newco rangers for him.
HH
Che – That’s good.
How much of a pay rise do you think you should be getting? (thumbsup)
philvisreturns says:
29 November, 2011 at 13:34
Why would that concern you do you have some level of influence with the Chancellor?
Basically this is a decision for Scott Brown…
Do I want to play for Celtic for the next 4 years or not?
If so dispense with the agent and sign the very generous contract on offer.
If not got to lower level EPL club or Championship side and get even more money.
I know which option I would take but then again I’m just a fan.
Celtic are doing the right thing here.
Celtic_First says:
29 November, 2011 at 13:27
Do you always answer a question with another question ?
Why would soccerex want to create a specific link between Rangers and Corinthians ?
Duffield is there with the Scottish Council for Development and Industry ? Who are financially supported by the UK Trade & investment
http://www.tradeinvest.gov.uk
So again I ask why just the huns ?
And why is the tax PAYER contributing to this junket ?
HAil HAil
Paul
I was at Old Trafford for the Newcastle game on Saturday in one of the corporate boxes (dont ask)!.
We ended up chatting to the 2 scottish lads beside us after the game.One was a serious Bluenose who thought it was funny to try to speak in a mock Irish accent. The other gent was Scott Brown’s agent, with his 2 kids. Unfortunately, the 4 hours of free alcohol at that stage meant I wasnt at my sharpest, but upon being introduced to SB’s agent, I immediately asked him when was he signing his new contract. “Shortly” was the response. Certainly not the friendliest man I have met, although his bluenose mate turned out to be actually alright.
Celtic_Gucks
bontybhoy,
vanguard of the hun meeja, do you still refuse to accept that since they stopped paying their taxes, rangers have any responsibility for the deaths of British soldiers in active service overseas ???
coorslad is Neil Lennon@13:25
I went in yesterday to try and get a ticket (junior) for my bhoy, but there wasn’t any near me. So the girl behind the counter just ripped up my existing ticket (3 match package) and issued me with two sitting together elsewhere, I think you would have to go up to the ticket office though, but it can be done.
Punt Heidless, we’ve got Victor
Celtic would be crazy to be paying brown this much to sign a new deal……..we are playing some great stuff just now and i see no place for brown in this current team…….if he is fit, at best he should be used as a sub for the remainder of his time with us……..
Awe Naw
Sorry, just re-read the stuff on the Soccerex website. Celtic were at their European event in Manchester in March. There is no reference to us being in Rio.
philvisreturns says:
29 November, 2011 at 13:32
Are you for real? Jeezo.
SofTunis -in her dreams ;/)
Strange adult behaviour two posters both claiming to be Celtic supporters have different points of view so instead of agreeing to disagree like adults they slag each other off.I suspect there both wee Bhoys.H.H.
Celtic_First
additionally it looks like to me that the hun does qualify for financial assistance or is their a secret trade of baby huns playing in Brazil ?
Hail Hail
BMCUW,
my moron badge is polished and worn with pride :oD
gorbalstam says:
29 November, 2011 at 13:38
Unfortunately yes he is,
hold on a wee second and the private sector argument will be rolled out.
TOP CORNER
Oh,got a colour HD with HD box,etc.
Only know how to work the sports and news channels,and still trying to figure out how to get the remote off my hun couch potato(he hates that term,for some reason,haha!)flatmate.
Personally,I could do without TV,honest. I much prefer music and reading.
AND IT’S CHEAPER!
Che – Why would that concern you do you have some level of influence with the Chancellor?
It concerns me as a taxpayer Che.
Sounds like you want me and others like me who fund the public sector through our taxes to pay you more than a 1% rise.
So I’m curious as to how much of a rise you think you should get? (thumbsup)
Celtic_First
questions need asked but they wont.
Operation save Old Firm seems to be in full flow or the RTC guys credibility is in tatters.
Hail Hail
C_F
Perhaps the Huns ducked out of the Manchester gig………
Discretion the better part of valour an all that, eh?
HH
I refuse to discuss the horse after that post about the boxers yesterday……..
if you click Celtic_First’s
soccerex link and click networking links
check out the ex celt doin the zumba
BMCUWP- gracias amigo!