Thursday 28 April 2016 21:28, UK
Why could Liverpool end up paying £8m for a player who was out of contract?
The club have been ordered by a tribunal to pay Burnley a £6.5m transfer fee for striker Danny Ings, with a further £1.5m in add-ons based on appearances.
Burnley will also receive 20 per cent from any future sale of the player following a meeting in Manchester on Tuesday, which was attended by officials from both clubs, as well as Ings who gave a testimony himself.
So how was the sum decided? And just why has it taken so long? With the help of Sky Sports News HQ's Andy Burton, we explain all...
Why did Liverpool need to pay Burnley?
Due to his age (Ings turned 23 last July), the Clarets will receive compensation, a practice which has been in place for a number of years to protect clubs who develop their own talent but can't always afford to keep them.
Who decided the fee?
Arriving at an agreed amount can be a tricky business. A Premier League Compensation Committee was formed and determined the amount following Tuesday's meeting.
The committee would have been made up of an independent chairman with a legal background, a representative of the Football League, Premier League, the PFA and the LMA.
How did they come to the figure?
They took into account the status of the club the player is leaving, the status of the club he's joining, the amount of money the club paid when they signed him originally, the length of time he spent at the club and the terms of the contract offered to him by the club he's at and the club he's leaving.
They would also factor in his playing record including any international appearances, as well as any 'substantiated interest' shown by other clubs in signing him. Reported interest in a player can see the compensation amount rise.
What else has an impact on the player's value?
The panel would also consider other costs, which Burnley would have to provide evidence of, including cost of training and playing facilities, education and welfare requirements, medical facilities, friendly and competitive matches as well as scouting and coaching fees.
