The 50-50 Deal

Ipswich are shortly to announce the signing of Argentinian Luciano Civelli, but perhaps the most curious aspect of the transfer is the fact that Town are due to own 50% of the player. Whilst the idea of a 3rd party owning the other 50% seems immediately concerning, in another time and another place for Ipswich Town it could have made quite a positive influence.

The concept of a club owning 50% of a player, with a 3rd party owning the remaining 50%, is something which does not appear to be altogether uncommon in Civellis home country of Argentina.

With clubs in financial difficulties, the option to effectively sell half of a players rights to an outside source, whilst still keeping the player whilst he generates further value, has proved quite an attractive option. Particularly when the alternative not only involves losing the player, but also failing to attract a significant fee as a result of the clubs financial position.

All of which raises a "what if" hypothetical situation. Back in 2002, with Town in ever-growing financial trouble, eventually ending in administration, the impact of entering into such 50-50 deals could have changed the shape of the football club completely.

As seems to be the case in South America, these deals are generally done for young players with future worth that a 3rd party can speculate on. In 2002, two such players at Town would have been Darren Ambrose and Darren Bent. And so, the "what if" scenario. With Town struggling to find buyers for their players, and at reasonable prices, they sell 50% of the future playing rights of both Darrens to whoever is interested. They could realistically expect to receive £2m for the two of them.

Fast forward to February 2003. Town go into administration and are forced to sell Hermann Hreidarsson and Darren Ambrose for £1m each, claiming that if they could have made one more sale, administration could have been avoided. Joe Royle blames Towns narrow failure in the transfer market on their inability to bring in any players on loan. Town spend the next 3 years paying off their CVA payments.

In the "what if" scenario, the 50% deals done with Darren Bent and Darren Ambrose change the picture entirely. By February 2003, Town sell Hreidarsson, but are able to retain Ambrose having already obtained a similar fee for him just six months earlier. The fee obtained for Darren Bent is sufficient enough to avoid administration and the club are able to make loan signings.

The consequences for the long term prospects of the club, having retained players and having avoided administration, could have been immense.

Sure, it is all hypothetical. Time, and Ipswich Town, have moved on. But it does make a lot of sense of the 50% clauses which, whilst appearing mysterious, are clearly extremely beneficial and could actually be of some benefit in the English game.