Chairman Reg Smart has given more financial details of the deal that took Martin Butler to Reading FC.

He told today's Cambridge Evening News that Reading will pay £500,000 up front with a further £250,000 in four quarterly payments. Additionally there is the possibility of a further £100,000 if Reading are promoted to Division One and the Premiership during the course of Butler's four and a half year contract, plus a £50,000 bonus if he plays for England. The report also confirms that Cambridge United will benefit from a sell-on clause if Butler is sold by Reading.

However Smart, no doubt mindful of his pledge at the recent Fans Forum that Roy McFarland would get 50% of any transfer fee received to strengthen his squad, stressed that not all of the fee is due to Cambridge United.

"Unfortunately we won't end up with that much money," he told the CEN. "In order to get Martin from Walsall three years ago for just £22,000 we had to agree to a sell-on. That is 20 per cent of the difference between the fees. And the only way we can persuade good players to join United on our modest pay scale is to offer them a percentage of any fee when they move. Both of those things reduce our profit."

The report goes on to state that Walsall will receive £95,000 of the initial payment, and Butler himself - although his percentage has not been disclosed - could also be due a similar figure. In addition United have to reduce the debt that has accumulated since finishing last season with a £57,000 profit, as trading losses since then amount to almost £250,000 and £40,000 has been spent to sign midfielder Neil Mackenzie from Stoke City.

Smart took the opportunity to correct the impression given by an article in Monday's Daily Mail in which he was quoted saying, "It might mean we'll go down but we've got to accept it."

He angrily denied saying those words and explained, "I didn't say anything of the sort. I'm really angry about that. What I told the reporter was 'Cambridge United have always had to sell to survive, and that's the case this time'."

Meanwhile Roy McFarland seemed to indicate that Butler's departure would hand a big opportunity to former Nottingham Forest reserve striker Steve Guinan, who joined on a free transfer on Christmas Eve.

"I'm not in a position to make any big money signings," he said, "but we brought in Steve Guinan from Nottingham Forest before selling Martin, and this will be a big chance for him."

Apart from one start in the Auto Windscreens Shield earlier this month, Guinan has been restricted to brief appearances from the bench, but he scored for the reserves against Ipswich Town last week and looks set to make the step up into the first team. He signed a contract until the end of the season and has until then to stake his claim for a longer deal.