The Renato Sanches signing is on it's face an enormous expenditure. €35M for an 18-year-old box-to-box midfielder is a good deal of money and for a Bayern Munich team that's already stacked with impressive midfield talent, it almost seems unnecessary. When you add on the performance incentives on the contract, and look at a potential lump sum of €80M, your eyebrows should be raised. However, the actual financial impact of this signing is fairly paltry for Bayern Munich.
At the outset, these are huge figures for an 18-year-old. But they're also unsurprising given the Antony Martial transfer Manchester United put in place last summer and their intimate involvement in the transfer bargaining process with Sanches. While reports range wildly on their actual involvement, the fact that Bayern Munich would step into the middle of this process and sign Sanches to this type of transfer agreement does suggest how highly they regard the player.
But when you break down the Sanches deal, it's actually quite a nice piece of business even though it's very atypical of Bayern Munich. The breakdowns come courtesy of Portugese site, Record, who broke the details early Wednesday morning. Here they are:
- An initial transfer fee of €35M as well as €45M in performance-based incentives over the next five years
- €5M per season should Sanches accrue 25 appearances
- €20M in incentives for FIFA Ballon d'Or nominations (the final three and not the shortlist) and FIFA World Best 11 nominations
- A €1.5M net annual salary (~€3M gross in Germany with the tax rate)
|Wages(€M)||Transfer (€M)||Total||Adder (€M)||Perf. Total||Adder (€M)||BdOr Total|
That's far below what other recent high profile transfers in Arturo Vidal and Mario Götze -- and probably Mats Hummels as well -- have cost this team. Their wages have been reported to be in excess of €10M and coupled with amortized fee of €8M per season, it's clear that Bayern Munich are getting a high caliber player for far less than it cost for either of those two.