How does the transfer system work? A Transfer window guide

Release clause

Now, this is not the only way to get a player from another club’s employment. A player’s contract has an optional ‘release clause’ or ‘buy-out clause’ amount mentioned in it. This means when a bidder matches or exceeds the release clause amount, his current club cannot stop him from moving to a new club. When the buyout clause is matched, the player is free to negotiate with the bidding club.

A bidder meeting the buyout clause of a player’s contract is equivalent to his current club accepting the offer, whether they like it or not. Hence, buy-out clause amounts for top players, though optional, are ridiculously high. Parent clubs insert clauses in the player’s contract in order to cash in on the player when he becomes hot property.

Messi’s buy-out clause is rumoured to be close to a billion euros

In case of third party ownership, the bidding club not only needs to satisfy the demands of the parent club, but also the third party for the move to happen. This may again involve the same saga of negotiations.

When all parties related to the player’s ownership consent by way of agreement, the player is free to talk to the bidding club. At this stage of negotiations, the player negotiates his wages, his future role in the team, the contract period, the bonuses, entitlements, jersey number, disciplinary rules, advertising assignments, leaves etc. By mutual consent, the player and the club can even choose to insert a buy-back clause in his contract with his new club, for other bidders in the future.

Agents

These days, most player have ‘agents’, middle-men who look after the player’s and their own interests. These agents, almost like brokers, are a very powerful tool in negotiations. They can have a crucial say in every stage, starting from the buyout clause value to the player’s wages. They make quite a handful in negotiations. An agent for a player is optional.

For example, here’s a quote by Jack Wilshere -

“I do not need an agent because I will never leave Arsenal”

. On the other hand, an agent can represent multiple players, or even managers, simultaneously.

Ratification of a transfer

When an agreement on personal terms is reached, the transfer is almost complete. Then, the move has to be ratified (or officially accepted) by the FA of the leagues to which both clubs belong. Now, the clubs are allowed to publicly announce the completion of the transfer. The player is now under contract with his new club completely. Third-parties may still be involved, and may still be paying the player his wages based on their own private deals.

We can make out here that upto five sides are involved in a player’s transfer – his current club, his new club, the player himself, an optional agent, and an optional third party. The finalization of a transfer and the player’s deal at his new club depends on satisfying all the five potential sides involved.

Buy-back clauses

Sometimes, even at his new club, the player may not be free from his new club. Some clubs, in the transfer agreement, insert buy-back clauses (Barcelona are a typical example here). With this powerful tool, they get first preference to buy back the player in the future when he needs to move. Thus, they steal a march on rival bids in any future transfer of a player.

Consider Oriol Romeu, a defensive midfielder for Chelsea, bought from Barcelona in 2011. If Chelsea want to sell him, Barcelona will have the first option to buy him, depending on whether they match Chelsea’ valuation of the player. But this valuation is decided by the initial transfer of Romeu to Chelsea in the first place, that is, the money Barcelona will have to pay in order to buy him from Chelsea will be mentioned on an yearly basis in the original transfer agreement.