This. Newcastle are paying a large fee because of his potential. Something they can now afford to do.
The £40m figure is inclusive of all add-ons and bonuses. The sell on clause will only relate to the guaranteed figure we will receive from Newcastle, which we don't know what it is.
Just for those who haven't seen it, this is from The Athletic article people are referring to: It is understood Chelsea’s sell-on clause relates to any profit made by Southampton from selling Livramento. They paid £4million for him — effectively making that amount exempt from the clause. Chelsea’s profit-share then exists on a sliding scale — the higher the total price, the larger slice of it they receive. Correspondingly, Southampton get a smaller percentage if they agree a bigger fee. For example, should the agreed package be £30million ($38.2m), Southampton would keep around 60 per cent of that (about £18m) — but if it rose to £50m, they would make roughly £28m (in the region of 56 per cent). This does suggest that the money Chelsea are entitled to will include the add ons (reference to total price, agreed package etc). Be a shame if it does work like that rather than only apply to the initial upfront fee, but either way seems Wilcox has got what he wanted from this deal, which bodes well for our other transfer negotiations.
I think what people aren’t taking into consideration is what would have Saints needed to pay Chelsea to waive/reduce the selling on fees? Could we afford that for an inexperienced youngster who either couldn’t cope with the PL or then went on to have a serious injury, possibly never playing again. Newcastle are, to an extent taking a gamble, on a relatively inexperienced player that has the talent to become a world class player or never reaches those heights due to injuries. The big difference between the two clubs is one having a country behind with enough cash to put a larger number on the roulette wheel. Liverpool could have taken a lesser gamble and bought Lavia from Citeh for £5m more than us and not be wrangling now, but we took the risk.
As for Tino he is at the start of his career and having suffered a year out injury, I don’t blame if he prefers higher wages if he thinks it could happen again.
Good business regarding Tino I suppose - but £20M is roughly a Carrillo or a Tall Pall. Lets spend it wisely this time !
