How does a release clause work?
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The release clause is the agreement fee which the buying club has to pay to the selling club. But many times, even after meeting the agreement fee, the player is not sold. You may wonder why?
Well, there are two types of release clauses – actual release clauses and “good faith” release clauses.
In an actual release clause, the player will be sold to the club that meets the terms and conditions specified in the clause. Terms and conditions vary, but clubs structure it in such a way so as to prevent a direct competitor from activating the clause. Portuguese clubs generally set the release clause for direct rivals at double or even triple the amount set for other clubs.
A “good faith” clause is basically of no use as it merely obliges the selling club to consider the bid from the interested club and enter negotiations.
