16 Jul 2015 17:12:10
Hi Eds, I know this may be a complicated issue, but with regards to the genteel situation, what does his release clause entail? I've always thought that a release clause only meant that the club had to tell the player that an offer was made for them, and a buy out clause meant that the player would be sold if they agreed to the move. However, Sherwood said that if a 32 mil offer came for Benteke, he would be powerless. I didn't realise a release clause could be that powerful.
Cheers and sorry for the long answer.
{Ed002's Note - An apt time for the question and perhaps I can explain it in easy to understand terms. I should say that this is a horribly complex area not least because they are written under individual national laws.
The "buy out" clause is legally binding between a club and a player. The "buy out" is effectively what it says - a means for the player to buy himself out of the contract. As an example, if a player wishes to buy himself out of a contract, he pays the applicable FA the amount of the "buy out" clause effectively becoming a free agent. The problem is that in most cases a player would need to obtain that money from the buying club - and this is fraught with issues regarding "tapping up" and, of course, taxation as it can be seen as income for the player and would therefore be subject to income tax. There was a test case about the taxation issue in Spain about three years ago. So "bouy out" clauses are very rare.
A "release clause" is far more common in that it gives a figure that the club would accept for the sale of a player to another club - but it is not legally binding except where both parties are in the same country (for the sake of argument I should say that Spain and Portugal count as the same country as do England and Wales). These are normally unreasonably high figures (Messi at Barcelona for example) introduced to act as a deterrent for hostile bids - and even then the club could easily block a move. However, if a club does agree to match a release clause then the selling club would be obliged to ask the player if he is interested - there is no obligation on the player to make a move. Examples are Goetze who decide he wanted to move and Cavani who, regardless of two offers that were made in 2012 that matched or equated to his then "release clause" recognised Napoli did not want to sell and could block a move abroad and he accepted a new package. Since then Napoli said they will listen to offers of €60M or so and indeed accepted a bid the following summer - which is of course different.
There is then the becoming popular "termination clause" which is binding between the player and the club and if met would see an offer from anywhere accepted and the player given the opportunity to make a call on a move. This overcomes the issues associated with "buy out" clauses as the money would be paid by one club to another.}
16 Jul 2015 17:33:05
Really informative! Thanks for the ed02
{Ed002's Note - Thank you.}
16 Jul 2015 18:29:34
Top class Ed02, thank you.
16 Jul 2015 19:12:37
Can players used to meet the buyout clause ed
{Ed002's Note - If the selling club is interested, sure.}
16 Jul 2015 19:17:15
Is they're anything Ed02 doesn't know?
I'll answer this for you.
No
Thanks for all the great info ed maybe you should write a book bout the real facts of football
{Ed002's Note - I really don't know.}
16 Jul 2015 19:55:03
Agree - thanks Ed - always a pleasure to learn something new - very well explained as well - thanks!
16 Jul 2015 22:45:35
Absolutely brilliant reply ed, such informative reply as always, magnificent job you eds do, thank you for your time it is much appreciated by most if not all.
17 Jul 2015 00:40:46
Ed002 books a great idea corruption in fifa ueffa then some tasty titbits about underhand transfers backhanders agent corruption clubs shenanigans last chapter could be a tell all about pep reina and jonjonjo and sakhos personal grooming skills i would defo buy a copy of that find out what goes on in the euro break away and teams involved and sakhos grooming services and fees and does he do extras lol
17 Jul 2015 02:28:48
Just to confirm, Benteke has a release clause, not a buy-out or termination clause, right?
Thanks for the info ed002