Like a vast majority of transfers? Very few all cash deals happen these days.
Is that right
@Beamrider
Virtually every deal that is
negotiated between clubs will be paid in instalments - it's standard for clubs to agree to this, non-instalment deals are the exception, not the rule.
Release fees are potentially different. If a club is seeking to exploit a low release fee then, depending on the wording, there ins't necessarily an obligation to accept instalments. In Spain for example, where release clauses are bog-standard, I understand the full fee has to be deposited with La Liga before the clause becomes active.
However, I saw clauses that said "if a fee in excess of £X is offered, the Club will be required to accept". In that situation, there is strictly no requirement for it to be paid up-front. From the sounds of it, RBL have a clause that refers to a cash receipt.
So you then try to negotiate on the basis of paying a little extra by instalments, and RBL can borrow against the future instalments if they need the cash up-front (so the extra fee is set at an amount which would cover their finance costs (which sounds like what Joyce is talking about). Alternatively, you involve a financial intermediary at the buyer's end who will lend you the 2/3 shortfall in return for interest and fees. This latter option would probably be difficult for LFC given our significant bank facilities and loans from FSG (the intermediary would have to rank behind the bank in the event of insolvency and the bank would probably need to consent to the arrangements). So for LFC, the best way out of this is to offer RBL a bit of extra cash over and above the release clause so they're at least indifferent between full amount up-front and a higher fee by instalments.
This was the point I was making last year about Werner - although the asking fee seemed like a bargain (at the time, anyway) it sounded like RBL were insisting on the full amount up-front so it would have taken a huge chunk out of our (likely cash-based) summer transfer budget and left us with no money to spend on other deals. In the end, the rumour was that the Jota fee was staggered in our favour with not much up-front, so we were able to squeeze more value out of our budget.
If LFC were assuming £34m for Konate would be paid in 3 instalments then we would risk losing £23m from our cash budget, which probably equates to about £60m worth of player(s) (adjusting for agent fees).