Manager Payments

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CopenhagenBlade

CopenhagenBlade

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How sad to see the dodgy Cockney 'Arry Redknapp get a grilling in the courts today for tax evasion. Interesting to see though that it is for payments for selling players, in this case Crouch from Pompey to Villa. Why would a club bonus him for this and weaken the side and do or have any of the SUFC managers had a bonus for this sort of thing? Where would their interests lie if for eg Norwich came in for Evans with a £2m bid and DW was on 10% of any sale? Would he sell knowing that it would ruin the chances of the club going up but set himself with a nice little nest egg?

Maybe it is not just the players and agents that are greedy...
 



CopenhagenBlade said:
How sad to see the dodgy Cockney 'Arry Redknapp get a grilling in the courts today for tax evasion. Interesting to see though that it is for payments for selling players, in this case Crouch from Pompey to Villa. Why would a club bonus him for this and weaken the side and do or have any of the SUFC managers had a bonus for this sort of thing? Where would their interests lie if for eg Norwich came in for Evans with a £2m bid and DW was on 10% of any sale? Would he sell knowing that it would ruin the chances of the club going up but set himself with a nice little nest egg?

Maybe it is not just the players and agents that are greedy...
Click to expand...

I am quite surprised as well that managers get these bonuses, but one assumes that the chairman must have to sanction the sale and then. once a sale is decided, task the manager to get the best price possible, paying him commission as an incentive. Otherwise, if the manager both decides to sell the player and gets a commission there is a huge conflict of interest.
 
I suppose the theory is that if a manager spots and buys a talented player, develops him and then sells at a profit, both he and the club will benefit.
Where this falls down is that there doesn't appear to be a downside for the manager if he buys poor players who the club lose money on.
Lets take the totally hypothetical example of a club spending £10M on two promising youngsters.
One youngster may fail to fulfill his potential and end up being sold at a loss, while the other excels, becomes an international and is sold at a large profit.
The club may only break even overall, while the manager still gets his big bonus from the second player.
I do hope United have never been involved in this type of deal.
 
isnt it 10% of any profit they make on the transfer ? crouch was bought for £1.5m and sold for £3m and mandy paid harry £110k (rough figures of course) says he would have trousered double if his contract had not been changed

i think holloway has a similiar deal at blackpool not great for the fans to know your manager could pocket a percentage on players going out the door
 
judge said:
isnt it 10% of any profit they make on the transfer ? crouch was bought for £1.5m and sold for £3m and mandy paid harry £110k (rough figures of course) says he would have trousered double if his contract had not been changed

i think holloway has a similiar deal at blackpool not great for the fans to know your manager could pocket a percentage on players going out the door
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It isn't new though, Gradi did it at Crewe for a large part of his time there and his chairman is on record as saying it was a deal he was happy to have struck with Gradi and I think their fans were quite accepting of it. He turned young players (including Rob Hulse into valuable assets.

This recent article talks about it and also refers to Ian Holloway.

http://www.crewechronicle.co.uk/cre...s-a-cut-from-player-transfers-96135-28097067/
 
I'm surprised people think football is squeaky clean, it's got a long history of corruption, dodgy dealing and skulduggery, all paid for by supporters. But eh, we still go and it still happens. Basically its part of what John Ryan at Donny was spouting off about yesterday. his mistake is doing it in public and challenging the powers that be.
 
Harry Redknapps contract as Director of Football entitled him to 10% of the profit on player sales. When he moved to be manager this decreased to 5%.

As it is on profit one could argue that it encourages player development...
 
dingledog said:
I'm surprised people think football is squeaky clean, it's got a long history of corruption, dodgy dealing and skulduggery, all paid for by supporters. But eh, we still go and it still happens. Basically its part of what John Ryan at Donny was spouting off about yesterday. his mistake is doing it in public and challenging the powers that be.
Click to expand...
I don't think that anyone is under any illusions that football is not corrupt anything where there is so much money involved will be corrupt. We have seen it from the top at FIFA all the way down that despite earning a fortune people taking bungs and backhanders to get more and hold on to their power. I was just surprised in this instance that a manager would be bonused on player sales, it seems a strange thing for them to receive bonuses on.
 
CopenhagenBlade said:
I don't think that anyone is under any illusions that football is not corrupt anything where there is so much money involved will be corrupt. We have seen it from the top at FIFA all the way down that despite earning a fortune people taking bungs and backhanders to get more and hold on to their power. I was just surprised in this instance that a manager would be bonused on player sales, it seems a strange thing for them to receive bonuses on.
Click to expand...

Jury's out on wether managers should or should not get bonus.But tax is a must,GUILTY.
 
if found guilty 'arry should be forced to manage SWFC for a minimum of 3 seasons as penance for tax evaision and Mandy should be forced to actually sit thru games at swillsboro, the whole 90 mins(+8 mins if vs uddersfield) :)
oh and both give their ill gotten swag to a needy cause, The Kevin McCabe charity for poor multi millionaires springs to mind.

MunXy
 
I think clubs that are skint - see us under Bassett and Blackpool when Holloway took over - are concerned there is often an incentive for them to contribute to turnover through player sales. Encouraging them to find an unpolished gem and nurture them rather than ask the chairman to sanction building a team of highly paid journeymen. It's part and parcel of keeping a club going and I don't see a conflict as such. It just depends on the character of the manager.

With Harry it's interesting to see some of the comments about Milan reneging on arrangements and then asking for money back. As for his claim that he thinks his offshore account is empty so there is no point telling the accountant or the tax man, he should tell the accountant, get a bloody bank statement and let the accountant verify whether it is empty or not. It is evasion by not revealing it in the first place. Really this is scratching the surface on football methods of payment. It could open a reyt big can of worms.

In other news I hear that Rangers are guilty of paying players via ill advised offshore loan accounts that were not set up correctly but the tax man is struggling with the decision to effectively kill off such an establishment. If it were any other business they would have gone to the wall over it. If football is a business as we keep being told then they should be treated as other businesses are. Wendy should have been wound up the moment the judge stated that they were trading insolvently too.
 



PandaCola said:
I thought Ken Dodd was found not guilty.
Click to expand...
So did I, well he would be when he managed to get his court case for Tax Evasion heard in Liverpool in front of a jury full of scousers, there were really going to find a fellow scousers gulity of defrauding the tax man!!!!
 
I remember a TV programme about bungs and dodgy practices where Barry Fry openly admitted that he'd taken a percentage of transfer profits. I forget which club it was, but it was a relatively small one, and Fry said that when he was offered the job the Chairman said "I can't afford to pay you a big salary but I can make it up to you with a cut of the transfer money" (or words to that effect). The practice would appear to have been pretty widespread. Maybe it still is. If the money is declared to HM Revenue, then it would appear to be perfectly legal. Just like Bankers' bonuses....
 
broomhillblade said:
I remember a TV programme about bungs and dodgy practices where Barry Fry openly admitted that he'd taken a percentage of transfer profits. I forget which club it was, but it was a relatively small one, and Fry said that when he was offered the job the Chairman said "I can't afford to pay you a big salary but I can make it up to you with a cut of the transfer money" (or words to that effect). The practice would appear to have been pretty widespread. Maybe it still is. If the money is declared to HM Revenue, then it would appear to be perfectly legal. Just like Bankers' bonuses....
Click to expand...

As someone below said, Holloway is on a similar deal at Blackpool and, as long as it's declared, it's legal...
 
Agreed contracts,open and above board, are fine even if we do not agree with the principle behind them. However, failing to declare worldwide income as a UK resident is a criminal offence. It does not matter from where the money has originated or even that tax may, or may not, have been paid on it. Redknap brags that he has got the best accountants in the country so you would expect that he will have informed them and taken advice. If he still did not declare it puts in doubt the effeciency of his accountant
 
"That money was just resting in my account" Father Ted/Harold Rednapp.
 
Sothall_Blade said:
Lets take the totally hypothetical example of a club spending £10M on two promising youngsters.
One youngster may fail to fulfill his potential and end up being sold at a loss, while the other excels, becomes an international and is sold at a large profit.
The club may only break even overall, while the manager still gets his big bonus from the second player.
I do hope United have never been involved in this type of deal.
Click to expand...

Sounds a bit like the Kyles........
 
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