Legal Description and Implementation of the Clause
The sell-on clause has become one of the most frequently used “tools” in transfer negotiations.
A sell-on clause may be defined as a contractual clause agreed between two clubs transferring a player, which governs the financial element of a future transfer of the player in their contractual relationship. As will be explored, a sell-on clause can also be agreed between a club and a player as a financial element of a sporting employment contract.
In particular, a sell-on clause entitles a transferring club (or a player) to a financial interest in any payment, fee or other value consideration agreed and/or payable as part of the future transfer of a player from the transferee club to a third club.
While construction of the provision varies deal-to-deal, the following illustrative example can be used: Club A sells Player X to Club B...
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