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Saturday, 15 July 2017

COMMON FOOTBALL CONTRACT CLAUSES EXPLAINED


It's TRANSFER SEASON! Every football fan's favourite preseason period; spending most of the time trying to differentiate between click-bait rumours and actual rumours on players linked to your club. And then when the deal is finally completed, the joy of bragging to opposition fans on how great a season your club just made and how he would tear payint absolutely destroy opposition defenders.

Well before a transfer is complete, a player is required to sell off his soul for a stipulated amount of time sign a contract binding him to the club. However, as in every contract, there are terms and conditions (which we know nobody reads anyway lol). Some of the terms include: length of contract, wage to be earned (definitely the best part :D) etc. These contracts often contain clauses; which are special provisions in the contract based on certain conditions. So let's get right to explaining some of the transfer related clauses.

1. The Release Clause

The release clause is simply a clause in a player's contract which stipulates a specified amount which must be accepted by the player's club is an offer is made. If a club makes a bid matching a player's release clause, the player's club must automatically accept the bid and give the player permission to speak with the interested club. Not every player contract has a release clause, sometimes they are inserted due to the request of the player's agent. Most clubs set the release clauses for their star players as high as possible. However, release clauses have also led to some bargain buys; as seen when Bayern signed Mario Gotze from league rivals Dortmund for about 37 million euros.

2. The Buy-Back Clause

The buy-back clause, usually inserted into a contract by the selling club, is a provision which allows the selling club to buy the player back at a stipulated amount at any time during his time at this new club. It is mostly utilized when the selling club believes the player will eventually come good in future and would not want to engage in a transfer tug of war when the time comes. So basically, any player being sold with the option of a buy back clause can be seen as a glorified loan.

3. The First Option Clause

Also usually used by the selling club, the first option clause is a stipulation which mandates the player's new club club to inform the selling club of any offers received for the player in question during his time at the club. So when a club signs a player with a first option clause, they must inform his former club of any transfer offers for that player; at which point the former club must then decide whether they want to buy the player back or not, before the transfer can be sanctioned. If the former club decides to re-sign the player, the club must then go into mandatory negotiations with them. If they decide against signing the player, then the club may proceed negotiations with other interested parties.

4. Percentage on next sale

This clause allows the selling club to make an agreed sum of money from the transfer fee in the instance of a future transfer of the player away from the buying club. The buying club must remit the stipulated percentage back to the selling club if the player in question is sold to another club. This however does not come into play if the player is sold back to the selling club.

Ff on Twitter @TCharis_DRO

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