Daniel Levy and the Gentleman`s Agreement: A Look at One of Soccer`s Most Controversial Deals
The world of soccer is no stranger to controversy, but few deals have been as divisive as the “gentleman`s agreement” between Tottenham Hotspur chairman Daniel Levy and Real Madrid president Florentino Perez. Signed in 2013, the agreement allowed Gareth Bale to move from Tottenham to Real Madrid for a then-world record fee of £85 million.
On the surface, the agreement seemed straightforward enough: Real Madrid agreed to pay Tottenham the massive transfer fee, while Tottenham agreed not to publicly disclose the full amount of the deal. However, as details of the agreement began to emerge, it became clear that there was much more at play than a simple transfer.
At the time of the deal, Spurs were under no financial pressure to sell Bale. In fact, they had just signed him to a new contract worth £100,000 per week. However, Levy was keenly aware that the player had his heart set on a move to Real Madrid, and he saw an opportunity to not only get a massive transfer fee but also to use the deal to his advantage in future negotiations.
The agreement stipulated that Real Madrid would pay Tottenham in three installments over the course of three years, with each installment equaling £28.3 million. However, crucially, the agreement also contained a clause stating that if any of the installments were late, Real Madrid would be obligated to pay interest on the outstanding amount.
This clause proved to be a shrewd move on Levy`s part, as Real Madrid were over three weeks late in making their second installment payment. As a result, they were forced to pay Tottenham an additional £500,000 in interest on top of the outstanding payment.
The controversy surrounding the deal stems from the fact that the disclosure of the full transfer fee would have had a significant impact on the transfer market. Had other clubs known the full amount paid for Bale, they would have been able to use that figure as a benchmark for future transfers, potentially inflating fees for top players even further.
Levy`s decision to keep the fee a secret was seen by many as an attempt to maintain the financial advantage that the agreement had given Tottenham. However, others argue that the agreement was a necessary move in a cutthroat industry and that Levy was simply protecting the interests of his club.
Despite the controversy, there is no denying that the Bale transfer was a huge success for Tottenham. The massive transfer fee allowed them to reinvest in the team, and they have since gone on to become one of the top teams in the Premier League. Whether or not the “gentleman`s agreement” was ethical, it certainly had a significant impact on the world of soccer, and it is likely to be discussed and debated for years to come.