Benefit of Release Clauses

Looking at Spain and their madatory use of a release clause written into every contract, it seems to me that a club that has unwanted interest in their player simply point to the release clause with a "pay up or shut up" message. Everyone knows that if you're going to buy Aguero or Rossi, this summer, you will have to pay the release clause and whilst the player may state his desire to move he is powerless to force it and cannot claim that the club is overpricing him as he agreed to the clause value.

I'm thinking that this could be a good way for us to go with future contracts. It's all well and good Levy saying that players aren't for sale but this is an increasingly outdated idea, relying on clubs having power that they simply don't have. Every player has their price and the clauses would reflect that.

It would make these struggles over player a lot quicker and simpler. Chelsea enquire for Modric > we say we don't want to sell > both Chelsea and Modric know that it will take Chelsea offering the buyout clause for the deal to happen. There's no grey areas, can they get him for £22mill, did Modric sign the contract on false promises of a move with Levy, etc.

Am I missing something, or does this sound ideal?

 

There is one downside - a player negotiating a contract will want to be paid more if there is a high release figure. I'd be arguing that if I am worth that amount that is the minimum I need to be paid - so it might be hard to do with our current wage structure.

I'm not a lawyer but I recall hearing that damages for breach of contract can't exceed the contract value except in exceptional circumstances. This doesn't strictly apply in football where the FA has additional rules about transfers, but in other walks of life someone could go off to a different employer and simply pay damages. I think it expalins Chelsea's initial bid though (and Modric would have every right to say to Levy - if that is less than I am worth then pay me the difference).

 

It has also occurred to me that this means that it can hardly ever be good value to sign a player with a release clause: because if that is what the player is worth you are effectively paying double for him - once to the releasing club and again as wages to the player.

 

Actually it makes very little difference in 99% of cases. Aguero is a prime example, there has been talk every summer of him leaving for years, easily as much as there has been over Gerrard or Fabregas; Gary Cahill has had a £17m release clause for years yet we get teh same rumours every transfer window about good clubs after him. Most players release clause is stupidly high for their ability. Even a player like Aguero had a clause around £50m (I believe it has been reduced recently) which at the start of his contract would have been a world record fee by some distance.

Even with a buyout there ARE grey areas. Why would a club after a player with a £50m buyout not try to pay less and offer £40m?

 

It could backfire as some players value shoots up very quickly.

 

Good points, Power. I'm not sure the contract value often equals the transfer fee, in terms of initial contract at least.

As for the wages going up, I believe that's something that will be happening anyway if we want to keep top players that are worth in the region of £40mill. Again I think we may disagree on the contract:transfer ratio, though.

As I see it, contracts are increasingly losing their value to the club as it's players and other clubs disregard them. Adding a release clause can surprisingly put the commitment back in the player's contract, it might not be ideal in all situations and could result in us letting a few players go cheaper than we'd like but I think it'd reduce long drawn out transfers. Transfers of players like Villa may have been protracted but it was clear from the outset what he'd cost and when it's a cost that he has agreed both he and his agent had the power taken out of their hands, it was just a case of waiting until a club was ready to stump up.

 

It's well known Aguero has been open to a move for awhile but when you compare his behaviour to that of players in a similar situation in the Premiership and in France it's miles apart. I haven't heard of any stories of key players to a club striking like Demba Ba, Berbatov and others have done to force moves but I'm open to being proven wrong on that. I'm not saying clubs won't try and negotiate but they try and fail - case in point Villa.