It actually works quite easy.
For example the Glen Johnson transfer to Liverpool.
First, Liverpool will put in a bid for Johnson to Portsmouth. From that bid, Portsmouth can decide on whether to accept/reject/negotiate the deal. If Portsmouth intend to negotiate, it means Portsmouth will suggest a new bid to Liverpool in which Liverpool would decide whether to accept or reject. If Liverpool accept their new demands, it means that the deal is accepted by Portsmouth.
For example - We make a 10 million bid for Glen. Portsmouth do not want that, instead they want an improved offer of 17 million, which will then be submitted to Liverpool. If Liverpool agree on it, then the deal is accepted.
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Again, in this case, take for example the Johnson's transfer to LFC.
Once a fee is agreed between the clubs, in this case 17 million, then the club will decide on what personal terms to offer the player. This includes the signing-on fee, the bonuses and the weekly wage, length of contract. Over time, the salary may increase with the length of contract. Once the terms is verbally agreed between the club and the player, the player will then fly in to have a medical before signing on the dotted line, thus he will then be declared as a 'official transfer'.
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Now, lets look at what happens when Chelsea came into the picture.
Once Chelsea came into the picture and submitted a offer to Pompey for Glen, it was accepted. This means that 2 clubs (LFC and Chelsea) will be offering the personal terms to Johnson. Thus, Johnson will look at the personal terms proposed by both clubs, and then make a decision which to reject and which to accept. In this case, he accepted Liverpool's terms and that's why he came to us.
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The club can also call upon an agent, who will then work on the club's behalf to find a buyer for a particular player that the club doesn't want to have in the ranks. If the player wants to leave the club, the player's agent can then contact interested clubs, and the agent will be working between the selling club and buying club to strike a deal. However, if the selling club does not want to release the player, then the chances of the player leaving decreases.
All the relavant documents between the player, selling club and buying club have also to be sent in to the FA for the transfer to be registered and approved.
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