Depends how you look at it. If Dundee Utd decided their business model depended on selling on young players, then giving the man who develops them a cut could be seen as a good idea. If it was up to him who to sell, then to would be shady, but presumably he had no say in the matter.
In general, I'd much rather someone like him received a cut, than an agent who does nothing to develop talent and is only interested in how many times they can move on a client so they get their 15%.