Introduction
Over the last decades international football has turned into a very lucrative business. Transfer fees of tens of millions of euros have become more and more common on a worldwide scale. Signing talented players, and subsequently transferring them for a higher amount to a third club, has become a very lucrative investment for clubs. As such, a frequently used way to keep a financial interest in a talented player, is to add a sell-on clause to the transfer contract.
We will see that sell-on clauses are beneficial for both the old and the new club. The old club possibly benefits from the subsequent transfer, whereas the new club will initially have to pay a lower amount and will only be obliged to pay part of the transfer fee if the player is transferred to a third club for a higher fee, and was therefore worth the initial investment.
In this article, the authors will specifically focus on the sell-on clause. In this regard, the authors...
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