Osaze Urhoghide: The fee Celtic will pay Sheffield Wednesday and why it is low

Celtic confirmed the signing of Osaze Urhoghide on Thursday afternoon.

Osaze Urhoghide has signed a four-year deal with Celtic. (Photo by Craig Foy / SNS Group)

The centre-back arrived on a four-year deal with the Parkhead side reportedly winning the race for his signature ahead of a number of interested parties.

Urhoghide was a free agent after his deal with Sheffield Wednesday expired at midnight on Wednesday.

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Just because he was out of contract doesn't mean Celtic signed him for nothing.

Urhoghide age is important. He is 20 years old.

With him being under 24, the Owls are due training and development fee.

It is understood to be around £200,000, a low amount for a player described by Celtic boss Ange Postecoglou as “a modern defender. He's good athletically, he's mobile, he's quick and he wants to get on the ball".

The reason the compensation is so low is because Urhoghide’s move is cross-border.

If he stayed in England, Wednesday would likely have received a higher fee because of rules and regulations in place for players under the age of 24 moving between English clubs.

If English clubs can’t agree on a fee it goes to the Professional Football Compensation Committee (PFCC) which factors in the player's playing record, interest from other clubs, contracts on offer, previous fee, age and time with the academy before making a decision.

Whereas when a player moves to Scotland Fifa's "training compensation regime" comes into play and the fee is lower.

It is a route Celtic and Rangers have taken advantage of previously.

The most high profile of which was Moussa Dembele’s move to Parkhead from Fulham, while Rangers benefited when they signed Joe Aribo.

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