July 25: Trading or Transfering?

This question brings an interesting twist to what we could consider for the major sports here in the US. As a matter of fact, I have been thinking about this for some time, beginning when I started paying attention to the Premier League intently. This happens to coincide with finding out about fantasy soccer, but my fantasy addiction is left for another time and another entry.

In international soccer, players are not always traded outright from one team to another. Teams recognize that players will develop and their wages should increase. Therefore, teams will submit transfer figures to the opposing teams. This amount is to release the player from the contract they are currently under and let the paying team negotiate a new contract. Then the player can switch teams, and his team is left with a pile of money instead.

This was in the news recently as Cristiano Ronaldo moved from Manchester United to Real Madrid for almost $132 million. This outrageous amount is paid directly into the account of Manchester United, and they can use those funds to purchase their own players, or they can just hang on to it. Transactions like this occur across Europe, as big teams pluck new talent from the lower tiers, and the lower tiers retool lineups and rosters. Teams will even accept multiple bids, leaving the paying teams to out-negotiate with each other over the services of the player. Sometimes, if a team has no more use for a player, or just desires for him to leave, they will let them go on free, or without the other team having to pay any money at all.

This was a novel idea when I first read about it, and piqued my interest even more as I got into the nuts and bolts. There are many different variations that can occur. Sometimes, teams will not only include money, but players may switch hands as well. For instance, a team may switch strikers, with one paying $5 million more to make the deal happen. Other times, a team is more interested in the rights to the player than the player himself. This could be as a future investment for the club or for transfer money. They will purchase him with a loan agreement back to the original team. This means the player will play for his original team, but is owned by another squad. Loans are also very common, as teams will not need a player and not want to pay the salary, but will not want to lose the benefits of a big money transfer deal down the line.

How can this play out in the MLB, NBA, NFL, or NHL? I am not exactly sure, but I think it would be an interesting tweak. For instance, the Cowboys would not have to eat Terrell Owens salary towards the cap if they had agreed with Buffalo to move Owens on a free transfer, with Buffalo renegotiating a contract with him. Also, the Broncos could have shopped Cutler to a number of teams, getting players, cash, and/or draft picks back without having to be limited. And if picks weren't immediately necessary, get cash so they could turn around and try to pry Chad Pennington out of Miami. This would open up possibilities for teams to recoup on players they no longer needed while giving them the chance to avoid prospects flaming out.

In MLB, the ever-present traders could recoup cash to sink into future signing bonuses, development, scouting, or acquiring their own talent. Instead of trading Adam LaRoche for some guess prospects, they could get $3 million for him. This money could help resign Jack Wilson or Freddy Sanchez, it could go towards signing Scott Boras clients, or it could be used to improve the minor system already in place. The Althletics could get Brett Wallace at third, but then receive $5 million for the rest of Matt Holliday, only to turn around and send $3 million to the Dodgers for three prospects that the Dodgers are willing to part with.

And in the NBA, the trade amounts that must be relatively equal could be a thing of the past as teams pay not for expiring contracts, but for the chance to sign players now. The Knicks pay $35 million to the Cavs for the chance to sign LeBron now. Not to be outdone, the Nets also pony up the money, and a bidding war ensues. And the Bulls, desperate for a post presence, can agree with Utah to swap Boozer for Tyrus Thomas and $6 million which the Jazz put towards Milsap's contract.

This is not a sure thing. Teams in Europe make millions of dollars each year, but are still way over their heads in debt. And in the NBA and MLB, if we are to believe the reports, the money might not be there for the transfer system. But it would be pretty neat, though, wouldn't it?