Benfica are close to completing the signing of Portuguese midfielder Joao Palhinha from Bayern Munich in a transfer that could cost the Lisbon club up to 40 million euros over four years.
The agreement between Benfica and the German Bundesliga club is delayed only by final details and could be announced at any moment. While the fixed fee of 14 million euros is significantly below the 25 million euros Bayern initially demanded, the overall financial package will average 10 million euros per year if the full four-year contract is completed.
Benfica will pay 14 million euros up front alongside 5 million euros in performance-related add-ons, bringing the total projected transfer fee to 19 million euros. According to available information, 3 million euros of the 5 million euro add-on package are easily achievable.
Contract terms and salary breakdown
Palhinha is set to earn a gross annual salary of 5 million euros at the Estadio da Luz, which equals 2.5 million euros net per year. Across the four-year agreement, his total wages will amount to 20 million euros.
Combining the 20 million euros in wages with the projected 19 million euro transfer fee brings the total to 39 million euros. The remaining 1 million euros will be paid to the midfielder as a signing bonus, reaching the overall 40 million euro figure.
Reunion with Marco Silva at Benfica
Palhinha's desire to return to Portugal was decisive in securing the move. The defensive midfielder communicated his personal and family motivations to Bayern management, despite having two years remaining on his contract with the German club, which ran until 2028. He had fallen out of favor in Munich after failing to feature in the plans of Bayern manager Vicente Kompany.
The transfer to Benfica allows Palhinha to reunite with head coach Marco Silva, with whom he built an excellent relationship during their time together at English Premier League side Fulham.
During his spell in England, Palhinha recorded the most tackles in the Premier League for two consecutive seasons. In the 2023/24 campaign, he completed 150 tackles, the highest total across all major European leagues.
