Hayes who was originally signed for a tribunal set fee of £125,000 from Scunthorpe in the summer of 2005 returned to Glanford Park after his Reds contract expired.
As Barnsley also offered him a contract and with the player being under the age of 24 Scunthorpe have been forced to pay a compensation fee.
Today news have been leaked saying this fee is £400,000! The same as Barnsley paid for Miguel Mostto in the summer!
Hayes returned to Oakwell with Scunny on Saturday but made little impact as Barnsley won 2-0
More soon....
From BBC:
Scunthorpe have completed the signing of Barnsley striker Paul Hayes after the clubs agreed an undisclosed fee.
Hayes re-signed for the Iron in the summer and the transfer fee was due to be settled by a tribunal on 5 October.
He spent the latter half of last season on loan at Huddersfield but failed to earn himself a permanent contract at the Galpharm.
The 24-year-old began his league career with Scunthorpe before moving to Oakwell in 2005.