what is sell on clause

what is sell on clause

1 year ago 33
Nature

A sell-on clause is a clause in a players contract that allows the selling club to receive a percentage of any future transfer fee if the player is sold again in the future. The clause is usually included in the contract of a young player who is expected to have a successful career, and it is often used by clubs to reduce the immediate transfer fee paid by the buying club. The percentage figure included in the players contract with his new club decides the amount of money to be given to the selling club. The sell-on clause is a common practice in the world of football, and it can be transformative in the histories of clubs in the EFL and below. The clause is usually stipulated as an addition to the players contract, and it is common for managers or sporting directors to include such a clause in the contracts of their most promising young players. The selling club risks missing out on potential future transfer fees if they do not include a sell-on clause in the transfer of a player. The sell-on clause is often used to sweeten a deal, particularly for lower-league clubs where money is scarce. The clause can be a source of disputes between clubs, and certain conditions need to be fulfilled to trigger the sell-on clause.

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