Buy-Out & Release Clauses in football contracts: The basics

Money in Hand
Wednesday, 02 April 2014 By Daniel Geey

This is a brief blog on the issue of buy-out and release clauses in football player contracts. There appears to be some confusion between the two concepts and the aim of this blog is to set out the basics with the aid of a few recent examples.

For more detail on this topic, I would highly recommend Ian Lynam’s excellent blog on this topic.


What is a release clause?

It is a clause in a player’s contract that, subject to qualifying conditions (i.e. a particular transfer window or non-participation in the Champions League), automatically requires a club to accept an offer of a pre-determined contractual amount expressly set out in the contract from the offering club. If the minimum amount stipulated in the contract is triggered by a the purchasing club, the player will be entitled to speak to that club.

Examples of release clauses

Only a few Premier League transfers have been reported to have included release clauses. This was the case with the Demba Ba transfer from Newcastle to Chelsea and Joe Allen from Swansea to Liverpool In the case of Allen, reports were that the bid could only trigger the release clause if it came from one of five clubs that included Liverpool.


What is the difference between buy-out and release clauses?

To continue reading or watching login or register here

Already a member? Sign in

Get access to all of the expert analysis and commentary at LawInSport including articles, webinars, conference videos and podcast transcripts.  Find out more here.

Related Articles

Written by

Daniel Geey

Daniel Geey

Daniel is a Partner in the Sport Group.

Daniel’s practice focuses on helping clients in the sports sector, including rights holders, leagues, governing bodies, clubs, agencies, athletes, sports technology companies, broadcasters and financial institutions.

  • This email address is being protected from spambots. You need JavaScript enabled to view it.

Leave a comment

Please login to leave a comment.


Legal Advisors

Copyright © LawInSport Limited 2010 - 2022. These pages contain general information only. Nothing in these pages constitutes legal advice. You should consult a suitably qualified lawyer on any specific legal problem or matter. The information provided here was accurate as of the day it was posted; however, the law may have changed since that date. This information is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation. LawInSport is not responsible for any actions taken or not taken on the basis of this information. Please refer to the full terms and conditions on our website.