Tuesday 9 June 2015 07:45, UK
Andy Burton explains why Liverpool have to pay Burnley for out-of-contract striker Danny Ings.
Danny Ings has agreed a deal to join Liverpool from Burnley but that might not be the end of the matter as the small matter of the fee is yet to be confirmed.
While Burnley have announced that Ings will move to Merseyside subject to a medical, this will be upon the completion of his contract at the club rather than by any agreement with the Reds.
“Burnley Football Club has rejected an offer made by Liverpool,” read a statement on their website. “But will continue to have dialogue with the club in order to reach a resolution over the fee.”
So why should Burnley get a fee for a player who will no longer be under contract to the club as of July? Sky Sports reporter Andy Burton explains the situation.
"Burnley won’t end up empty-handed here if Ings leaves on a free transfer,” says Burton.
“Due to his age they will receive compensation, a practice which has been in place for a number of years to protect clubs who develop their own talent but can’t always afford to keep them.”
Arriving at an agreed amount can be a tricky business. “A Premier League Compensation Committee would be formed, and they would be the ones who determine a suitable amount,” adds Burton.
“These committees are made up of an independent chairman with a legal background, a representative of the Football League, Premier League, the PFA and the LMA. Between them, they will come up with an appropriate fee based on a number of factors.
“They would take into account the status of the club the player is leaving, the status of the club he’s joining, the amount of money the club paid when they signed him originally, the length of time he spent at the club and the terms of the contract offered to him by the club he’s at and the club he’s leaving.
“They would also factor in his playing record including any international appearances, as well as any ‘substantiated interest’ shown by other clubs in signing him and reported interest in a player could see the compensation amount rise.
“The panel would also consider other costs, which Burnley would have to provide evidence of, including cost of training and playing facilities, education and welfare requirements, medical facilities, friendly and competitive matches as well as scouting and coaching fees.
“It’s impossible to guess a likely figure due to the amount of detail, but expect it to be lower than the £12m reportedly offered by Tottenham earlier this month.”
Burnley won’t be the only club entitled to compensation either. Having spent five years coming through the ranks at Bournemouth, they too will be in line for a payment, although Burton believes it would be “probably not more than a couple of hundred thousand pounds”.
