Comprehensive analysis of Mario Gomez loan deal

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Updated: July 30, 2015

As you all know by now Beşiktaş have loaned Fiorentina striker Mario Gomez with an option to make the move permanent.

As Beşiktaş are a public traded company they are obligated to disclose any financial transactions, current or future.

So if Beşiktaş were to make this deal permanent for a trasnfer fee they would have to disclose that predetermined transfer fee to the public disclosure platform (KAP).

This however has not happened, it simply states “loan with option to make the move permanent”.

Since we now live in the world of Financial Fairplay, clubs do things differently, this isn’t the first time we see a loan construction like this to benefit either club, especially in Italy.

Clubs under an FFP settlement or simply clubs who are struggeling with the FFP conditions on breakevens, are finding new ways to circumvent UEFA’s new invention.

Fiorentina paid € 15,5 million for Mario Gomez back in the summer of 2013 and they signed him on a € 4,25 million annual contract, excluding bonusses, which is weighing heavily on their wage bill.

Gomez has cost Fiorentina around € 24 million so far. Well, more like € 21,5 million as they still owed him around € 2,5 million in back wages.

First, it’s important to understand that clubs have to report to UEFA their annual breakeven report. I’d advise you to google “UEFA Financial Fairplay” if you want to go further in to detail on this. But what it boils down to is that a club can’t spend more than they earn, or atleast the difference isn’t allowed to be bigger than a certain amount (this varies for clubs who are under a settlement or who aren’t).

Fiorentina and Gomez have come to an agreement, they don’t have to pay the € 2,5 million in exchange for letting him go “for free”.

Mario Gomez, as I said, was on a € 4,25 million annual deal at Fiorentina, with 47% taxed that left roughly € 2,25 million net for the player. At Beşiktaş now he will be making € 3,5 million in guaranteed wages, net that boils down to just below € 3 million (15 % tax). So, in fact Gomez will be making around € 725.000 more in guaranteed wages, excluding bonusses.

Beşiktaş are not paying Fiorentina any compensation for the loan, again we know this becaues if they did they would have had to disclose this to the stock exchange, and it seems there won’t be a transfer fee to make the stay permanent either. So why not just transfer the player straight away?

This is most probably on Fiorentina’s request, as they can spread their ‘loss’ on Gomez over a longer period of time. Rather than writing off € 24 million (21,5M) over two years, they will be able to do so over 3 or perhaps even 4 years.

But at the end of the day, Beşiktaş will not be paying any transfer fee to make this a permanent deal.

Beşiktaş journalist Firat Günayer also tweeted earlier “Don’t worry, there is no transfer fee involved”. And I am enclined to agree with him due to what I just stated.

Here’s his tweet..

He had some other interesting things to say which I suggest you read.

 

– Kaan Bayazit

 

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Kaan Bayazit

Editor-in-chief at Beşiktaş International
Freelance sports writer specialized in Turkish football and Beşiktaş. Co-host of the Black Eagles podcast. Frequently featured in World Soccer Digest Japan and many other international media outlets. Following Turkish football for close to two decades. Proud father to Aedin.
Kaan Bayazit
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