Being able to maximise your recruitment process – your conveyor belt of talent from either your academy or other clubs – is just one part of what makes or breaks a club in the transfer market. When engaging within transfer negotiations, clearly, the buying club aims to bargain for the lowest price possible, while the selling club naturally tries to market the player for a much higher amount. The final transfer sum will be somewhere between these two, depending on the two teams bargaining power.
It can be influenced by the possible available substitutes (i.e. other players), the talent and skills of the player(s) in question, and the estimates that the respective clubs assign regarding the marginal utility of the player’s talent. Considering that it is a team sport, the value of individual talent and skills greatly depends on the team the player is contracted to. The extent of how much the buying and selling clubs’ bargaining power influences the signing price is still debated and vary according to a number of factors that may even come from the player himself.
The start of the negotiation process, from the selling point of view, is the part where a good manager (or Director of Football) is also able to negotiate a reasonable price, as this can earn his club many millions extra. Negotiating a good deal is a complicated game between guestimating the value of a player, assessing what the buying club is willing to pay for him and being able to extract as much money as you can out of the deal.