PARAMETRO ZERO: A DOUBLE-EDGED SWORD

During transfer windows, we often hear about contractual operations referred to as “Parametro zero” (Free Transfer) by journalists, pundits, and agents. But what does this term really mean?

“Parametro zero” refers to a situation in football where a player reaches the end of their contract and refuses the renewal offer that may be proposed by their current club, usually accompanied by a salary increase. If the player decides not to accept the contract renewal, they can join another club without the latter having to pay any fee to the previous club, as the transfer fee is effectively nullified.

However, to truly understand this strategy, we need to dive deeper into its implications as an investment for clubs. A player who, through their agent, manages to reduce the transfer fee to zero, will likely negotiate a higher salary or a longer contract with the new club, leveraging the fact that their cost on the books is zero. But, in reality, this is not entirely the case.

In most instances, such operations hide significant additional costs that are added to the “purchase price” and amortized over the length of the contract the player signs with the club. Consider recent cases involving high-profile players like Emre Can, where Juventus F.C. had to recognize €16 million in additional costs, Stefan De Vrij (€7.5 million), or Aaron Ramsey (rumored to be €9 million). But what exactly do these additional costs represent?

These additional costs are defined as “compensations paid by clubs to football agents who mediate player transfers under a regular mandate,” as stated by www.calcioefinanza.it. The importance of this business cannot be overstated, as football agents hold immense power and, particularly, achieve financial returns far beyond standard market expectations. The scale of the industry is staggering. From 2013 to 2018, the total cost of intermediation fees amounted to €1.86 billion, with the mastermind being none other than Mino Raiola.

However, not everything is negative, as you can imagine. Given the financial constraints introduced by Financial Fair Play (FFP), clubs find this type of operation advantageous as it allows them to strengthen their squad without burdening their balance sheets or making large financial outlays. This strategy is used by both smaller clubs, which typically lack the financial resources but want a competitive team, and by top clubs. A prime example of a “king of free transfers” is Juventus F.C., which boasts an impressive track record: from Pirlo to Pogba, from Barzagli to Dani Alves.