I am not 100% sure how it works but that is my take on it. For example Seamus was signed for just £150,000 presumable for a few years and on a grand or so a week perhaps, then he get a few starts in the first team increasing his value and wage expectations at least 10 fold. So the club will be happy to pay him more and Seamus will expect more so they are likely to both want to scrap the old contract and agree a new usually longer one. Both would have to agree to this I think, but neither has a great incentive to block it. The clubs want to secure his services for longer realising his value could increase more and Seamus will obviously be glad of a lot more money in his pocket ASAP
The problem would come if there was a big disagreement over the players value, then basically the old contract would have to be honoured until it expired. This works well for the player as he will become a free agent when the contract expires and thus a new club will not have to pay a transfer fee allowing Seamus to demand more in wages. The downside for the player is he may may have to wait for several years on low wages for that to happen, during which time his value could decrease due to injury or loss of form. In general both sides tend to come to agreement to get some kind of certainty for the future.
Just doing a bit of maths here, £1 million works out at about £20,000 a week. So £10m would be £200,000 a week. Presumable there is some sort of basic formula that is used for wages and transfer fees
but it must be petty complicated including bonuses for playing etc..
As for Cudicini I am not sure he might have been under contract but Spurs may be happy to let him go for nothing as they probably are contracted to pay his probably very high wages.
I mean say for simplicity they were paying him £100,000 a week, in 25 weeks they would have to pay him £2.5 million. So by letting him go for nothing they actually make £2.5 million given as he was 4th choice keeper!!
I don't think Spurs would need to buy him out because he is likely to happy to go assuming he wil be getting similar or more wages. Anyhow there is nothing to buy as they already own him, except owning him means they have to pay him, so happy to get rid.
The tax services would of course want to know all his details of course but they would be expected to keep it confidential.
I am not too sure who the USA system works but according to here
http://www.bellaonline.com/articles/art54233.asp
The players are owned by the MSL not by the clubs?
Not sure I understand the US system or hence which is best.
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