higher transfer commissions
Posted: Sat Jan 12, 2008 9:35 pm
This has been proposed in the transfer number limitation topic, but I think it deserves more attention. In short, the proposal would be to increase the percent of the total amount paid to the agent and the previous team to about 10% total - 8% to previous team and 2% to the agent. or 7 and 3 maybe.
The result in the long term would be reducing the gap between lower divisions and higher divisions teams.
In the short term:
1. it may actually make it harder for lower divisions teams to reach the upper divisions, because it will reduce the transfer gain for the new active buyers and sellers. This will also lead to a strengthening of the top division teams.
2. may lead to a slight increase in prices, especially for direct transfers, as sellers will want to cover the percentage lost from the commissions.
However, in the long term - 2-3 seasons:
1. it will decrease the gap between the top and lower division teams, as the money will be redistributed relatively evenly throughout the divisions. since the top teams make the highest buys, they will pay the highest percentages, usually to lower division teams. The lower division teams, will, on average, pay less commission since they usually make lower-value expenditures. Overall, the teams of the lower divisions, even the high-trading ones will have more to earn, since they will keep the players that are good for them, but not good enough for the the upper-division teams.
2. some of the prices will lower, because of the increased percent paid to the agent - 2-3% of each transfer are eliminated from the game, meaning less total money. other segments of the market, especially the lower-value market, may increase though, as the lower-division teams will have more money.
3. increase the complexity of the tactical approach to the game and long-term thinking. teams will rely slightly more on the game strategy. team rebuilds will become less advantageous.
4. give an inflation management tool. i.e. if inflation gets high, the amount given to the agent can increase by 1 or 2%, while the total commission remains the same.
as a conclusion: this measure will allow in the long term a redistribution of capital that would be to the advantage of the lower division teams and thus would increase competition.
The result in the long term would be reducing the gap between lower divisions and higher divisions teams.
In the short term:
1. it may actually make it harder for lower divisions teams to reach the upper divisions, because it will reduce the transfer gain for the new active buyers and sellers. This will also lead to a strengthening of the top division teams.
2. may lead to a slight increase in prices, especially for direct transfers, as sellers will want to cover the percentage lost from the commissions.
However, in the long term - 2-3 seasons:
1. it will decrease the gap between the top and lower division teams, as the money will be redistributed relatively evenly throughout the divisions. since the top teams make the highest buys, they will pay the highest percentages, usually to lower division teams. The lower division teams, will, on average, pay less commission since they usually make lower-value expenditures. Overall, the teams of the lower divisions, even the high-trading ones will have more to earn, since they will keep the players that are good for them, but not good enough for the the upper-division teams.
2. some of the prices will lower, because of the increased percent paid to the agent - 2-3% of each transfer are eliminated from the game, meaning less total money. other segments of the market, especially the lower-value market, may increase though, as the lower-division teams will have more money.
3. increase the complexity of the tactical approach to the game and long-term thinking. teams will rely slightly more on the game strategy. team rebuilds will become less advantageous.
4. give an inflation management tool. i.e. if inflation gets high, the amount given to the agent can increase by 1 or 2%, while the total commission remains the same.
as a conclusion: this measure will allow in the long term a redistribution of capital that would be to the advantage of the lower division teams and thus would increase competition.