EFL side's windfall revealed in Leeds United transfer move for Ethan Ampadu after 'wrong message'

The Welsh international, capped 44 times, moved to Stamford Bridge as a 16-year-old from the then-League Two Grecians.

Chelsea and the lower league side were unable to come to an agreement over financial compensation and the Professional Football Compensation Committee [PFCC] had to rule on the matter.

The decision reached was that Exeter's total compensation would be a sum of up to £2.55m with £1.3m guaranteed and a further £1.25m depending on first team appearances with Chelsea. Crucially, however, a 20 per cent sell-on clause was also inserted by the PFCC.

The ruling stated: "Chelsea Football Club should pay Exeter City an initial net fee of £850,000. In addition to the initial payment a fee of £450,000 is also payable. This fee incorporates an amount for the player signing a first professional contract, making five first-team appearances and obtaining a senior international cap.

"Chelsea will pay Exeter City 20 per cent of any excess over the amount already paid to Exeter City in respect of sums receivable by the way of a transfer/compensation or loan fees if the player should leave Chelsea, whether permanently or temporarily by the way of a loan at any time in the future."

Leeds have agreed a deal in the region of £7m for Ampadu and Exeter will receive a fifth of the profit Chelsea make on the 22-year-old. Ampadu's 12 first team appearances for the Blues would have netted Exeter a sum of £250,000 on top of the £1.3m they were originally paid, meaning Chelsea's profit will stand at around £5.5m and the Grecians could receive just over £1m.

The 2018 PFCC ruling came as a bitter blow to Exeter, now a League One outfit, and club chairman Julian Tagg accused the body of sending the wrong message when it came to rewarding clubs for developing young talent.

“Whilst the club recognise that the compensation fee is not a transfer fee, but instead to reward the club for its investment in the training and development of a proven outstanding player, and that the tribunal has awarded Exeter significant contingent sums, to say that we are disappointed is an understatement.

"We are disappointed for our fans, our academy, which works so hard on producing talented young players like Ethan and for our management and coaching team who bring these players into the first team and beyond as part of supporting the work of the FA in its objective to produce international players of the highest quality which we believe we have done.

“However, above all, we are disappointed for football as we feel this decision sends the wrong message in terms of financial reward for those owners, chairmen, managers and coaches up and down the country who are also working as hard as us to improve their clubs by producing talented home-grown players for both club and country."

Ampadu will become the first senior signing of the summer for Leeds as they build a promotion-worthy squad for new manager Daniel Farke.The Whites are also in the market for a goalkeeper, right-sided centre-back, at least one left-back, another central midfielder, a number nine and - should they lose a couple of their wide men this summer - wing reinforcements.

Willy Gnonto has been the subject of a speculative offer from Everton but Leeds are determined not to sell the Italian international and see him as a key part of their plans.