Why understanding net salary is crucial for agents
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Best Practice
Why understanding net salary is crucial for agents
by Becca Carr

It's often difficult to get a quick picture of a player's potential net salary when assessing global transfer market opportunities but it is a key factor in transfer success. TransferRoom Net Salary Calculator gives agents a clearer picture. 

The same gross amount can be a relevant opportunity in one country and a completely irrelevant one in a different country for the same player, as taxation can be radically different from one place to another. Can you imagine an agent needing to know how much tax a player needs to pay in every single country? It's impossible! The amount of time saved with this change is beneficial for everyone on the platform. Excellent update!
João Araújo
FIFA Football Agent, Onsoccer International

Having success in the transfer market comes down to having the right information at the right time. When identifying opportunities for players, agents often don’t know what a club’s salary budget is. When they do have an idea of a gross budget, agents still have to analyse different country’s tax implications to ensure they can determine a player’s actual take home pay. 

If agents are unable to quickly and accurately calculate a player’s net salary this can lead to a disadvantage when entering negotiations or cause them to waste time pursuing clubs that can’t afford their player’s salary demands. If negotiations lead to a lower net salary than expected this can cause player dissatisfaction and a reduction in an agent's earnings. 

Instead when Trusted Agents identify a suitable club requirement on TransferRoom, our Net Salary Calculator provides an instant approximation of the player’s net salary. This allows agents to easily compare opportunities and enter negotiations with the best chance of maximising their own and their player’s earnings. 

What can happen if agents don't have an accurate understanding of net salary? 

 

An unclear picture of potential commission

In most cases an agent's commission is based on net salary, directly affecting the agent's income. Getting a clear picture of the player's net salary ensures agents know what their earnings will be from the deal. 

 

A disadvantage in negotiations

In negotiations, net salary is another lever for agents to use when comparing offers from different clubs. If the agent is unable to highlight what the player would take home after a country's taxes and deductions, they miss the chance to push for more favourable terms. 

 

Player dissatisfaction

Players care most about the salary they will actually take home. In order to enhance their player's satisfaction with a deal, an agent needs to negotiate deals that maximise the player's net earnings after taxes. This will strengthen the agent's relationship with the player and boost the agent's reputation. 

 

Complex cross-border discussions 

When looking for their player's next opportunity, agents are often considering transfers between different countries. On TransferRoom, agents can access real-time club requirements in over 70 markets. This usually requires agents to carefully analyse the different tax implications of different countries to ensure the player's net salary remains attractive and meets their demands. Even if the gross salary appears high, if the agent underestimates the tax burden of a country, the player might end up earning less than they expect, leading to dissatisfaction.

 

Negative impact to a player's financial future 

Understanding a player's net salary can be essential when making accurate financial projections including savings, investments and post-retirement, as well as ensuring the player's financial future is secure.  

Where is the Net Salary Calculator seen?

 

The Net Salary Calculator currently lists approximate net salaries next to the gross salary of a specific club requirement on the Pitch page. 

How does the Net Salary Calculator calculate approximate net salaries?

 

When a club posts a requirement to buy a player, they provide the gross salary they are able to pay. The Net Salary Calculator then uses published national-level income tax bands in the club's country to produce an estimate of the player's salary after basic tax deductions.

 

This includes widely applicable taxes such as social security but excludes possible additional deductions that are specific to individual situations, like local taxes and pension contributions, among other things. Our data comes from multiple sources which are used to produce an overall figure.

 

If you have any other questions about the Net Salary Calculator, please speak to your customer success representative.

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