Development Fees

[Billy Whizz]

Does anyone know how this actually works?
Hearts would have been due around £450,000 or so if Paterson hadn't got injured in the summer. Think there was uproar when Dundee Utd had to pay a fee of around £200,000 or so for Charlie Telfor.
Is there a formula they use to work this out?

[andy1875]

Is it based on previously rejected bids? Or does that have a contributing factor. Sure hearts have bids in the region of £450k in the past which they rejected. May or may not be a factor but just a hunch.

[southern hibby]

I've got a question or two about development fees. If McGinn run his contract down would Hibs be entitled to a development fee or would it go to St mitten or so much to each club???

Also again if McGinn ran his contract down and Hibs got the development fee would St Mirren be entitled to 30% of this fee or are they only entitled to 30% of A SELL ON FEE?

Last question if Hibs re- sign mcginn do the percentage as a sell on fee to St Mirren decrease or vanish?
GGTTH

[MacGruber]

I wouldn't have thought hibs would get any development fee for mcginn, we've not had him long enough/through the youth ranks.
As per the fee, it's settled at tribunal - not sure what the factors of the decision would be. Dare say length of time at the club, international honours, appearances etc come into it.
Also, I think Hearts nominate their own fee like for Patterson. Put a figure out there and make it fact - like the Griffiths 150k. I don't think any development fee in Scotland has been 450k - although Patterson could be expected to be one of the pricier ones in fairness. If they did know 450k then there must be a formula and therefore no need for tribunal (if 2 clubs agree possibly no tribunal?)

[southern hibby]

I agree about length of time at Club etc but why would St Mirren get development fee when they already sold him to us? Maybe naive here but would development etc not all pass to us because we bought those rights with his contract. I.E. Players came to Hibs to further his development and improve his future employability?

GGTTH

[JDHibs]

Its based on first team experience, level played at, time at the club and potential.

I.e a young lad in the development league with no or little first team experience, been at the club since a young lad would fetch £30-40k.

Where as a similar situation but with lots of first team experience (i.e McGinn) would fetch £200k+.

Danny Ings went for £8m due to him playing alot of football at Burnley and doing well, his potential was alot higher. Dembele would have cost teams down south a good few million due to his exploits at Fulham, but there is a loop hole between Scotland and England that meant Celtic only paid £500k. Same loop hole got Rangers Rossiter for £250-400k instead of £2-£3m.

Totally dependent on the individual and their circumstances.

[CallumLaidlaw]

I agree about length of time at Club etc but why would St Mirren get development fee when they already sold him to us? Maybe naive here but would development etc not all pass to us because we bought those rights with his contract. I.E. Players came to Hibs to further his development and improve his future employability?

GGTTH

We couldn't afford the development fee st Mirren were looking for (or probably what we'd be asked to pay at a tribunal) so we agreed a smaller development fee with St Mirren as well as a 30% sell on clause from any fee we get for him.


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[Smartie]

Did we not somehow get a development fee for Jorge Claros when he moved after leaving us, as we'd effectively spent a year and a half developing him?

"All very complex" as a not-so-wise man who didn't have a clue what he was talking about once said.

[lord bunberry]

Does anyone know how this actually works?
Hearts would have been due around £450,000 or so if Paterson hadn't got injured in the summer. Think there was uproar when Dundee Utd had to pay a fee of around £200,000 or so for Charlie Telfor.
Is there a formula they use to work this out?
The controversy surrounding Charlie Telfer was that Dundee Utd didn't want to pay the money as Telfer had come from the liquidated Huns and the new Huns were going to be getting the money.
I would imagine development fees are based on age and number of appearances which would rise further if they have international caps.

[CallumLaidlaw]

Did we not somehow get a development fee for Jorge Claros when he moved after leaving us, as we'd effectively spent a year and a half developing him?

"All very complex" as a not-so-wise man who didn't have a clue what he was talking about once said.

I wouldn't have thought so as he was only on loan but I seem to remember us getting some money for international games he played in


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[Greenworld]

We couldn't afford the development fee st Mirren were looking for (or probably what we'd be asked to pay at a tribunal) so we agreed a smaller development fee with St Mirren as well as a 30% sell on clause from any fee we get for him.


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Really first I've heard of this I thought a development fee was paid by hibs reduced because mcginn dropped any legal Acton or money due because of the accident at training ground there

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[Marco G]

Really first I've heard of this I thought a development fee was paid by hibs reduced because mcginn dropped any legal Acton or money due because of the accident at training ground there

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Think you are right with that. McGinn was out of contract so we were due nothing to St Mirren other than development fee. This story about a 30% sell-on cut to them seems to have become fact, but was never stated officially and may well be a load of rubbish.

Anyway Hearts will now sweat about what to do with Paterson. If he resigns with them they will take a risk on him regaining fitness but could sell him for a wodge later. But if his contract is not renewed in the summer he could leave after October for no fee at all, since he will then be over the age that a development fee must be paid.

[CallumLaidlaw]

Think you are right with that. McGinn was out of contract so we were due nothing to St Mirren other than development fee. This story about a 30% sell-on cut to them seems to have become fact, but was never stated officially and may well be a load of rubbish.

Anyway Hearts will now sweat about what to do with Paterson. If he resigns with them they will take a risk on him regaining fitness but could sell him for a wodge later. But if his contract is not renewed in the summer he could leave after October for no fee at all, since he will then be over the age that a development fee must be paid.

The st Mirren chairman advised of the sell on at their AGM. That's good enough as fact to me.


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[brog]

Think you are right with that. McGinn was out of contract so we were due nothing to St Mirren other than development fee. This story about a 30% sell-on cut to them seems to have become fact, but was never stated officially and may well be a load of rubbish.

Anyway Hearts will now sweat about what to do with Paterson. If he resigns with them they will take a risk on him regaining fitness but could sell him for a wodge later. But if his contract is not renewed in the summer he could leave after October for no fee at all, since he will then be over the age that a development fee must be paid.

It's as official as you can get. Stewart Gilmour, St M chairman, provided details of the deal to a fans' forum/meeting & then later confirmed it on twitter. St M get 33% of the difference of any transfer fee over £100k. I saw it on Twitter before, should still be out thee.

[Marco G]

It's as official as you can get. Stewart Gilmour, St M chairman, provided details of the deal to a fans' forum/meeting & then later confirmed it on twitter. St M get 33% of the difference of any transfer fee over £100k. I saw it on Twitter before, should still be out thee.
Thanks for that, I had not heard anything from us or them at the time of the transfer. Hopefully it will not be relevant for a long time at the very least!

[Billy Whizz]

It's as official as you can get. Stewart Gilmour, St M chairman, provided details of the deal to a fans' forum/meeting & then later confirmed it on twitter. St M get 33% of the difference of any transfer fee over £100k. I saw it on Twitter before, should still be out thee.

If and when we sell him on, we just negotiate a % sell on fee