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31 Aug 2020 00:33:27
Just to add, that my question was more of me interested to know more about the system, not so much on any specific player including Messi. Hope you can help. Thanks Ed02.

{Ed002's Note - Perhaps a reminder about transfer related clauses would be apt. This is a horribly complex area not least because they are written under individual national laws. They cause a great deal of misunderstanding with football supporters and the media alike.

The "buy out clause" is legally binding between a club and a player. The "buy out" is effectively what it says - a means for the player to buy himself out of the contract. As an example, if a player wishes to buy himself out of a contract, he pays the applicable FA (on behalf of the club) the amount of the "buy out" clause effectively becoming a free agent. The problem is that in most cases a player would need to obtain that money from the buying club - and this is fraught with issues regarding "tapping up" and, of course, taxation (as it can be seen as income for the player and would therefore be subject to income tax). There was a test case about the taxation issue in Spain about seven years ago which is why they have an exception. All players in Spain and Portugal have a clause that allows the player to buy himself out of his contract without tax implications - the tax implications passing to the buying club - typically at 50% on top of the value of the clause for the higher profile players. This was to address a ruling from around 30 years ago allowing players a way out of their contracts. The other notable point about Spain and Portugal is that the clauses, if invoked by a non Iberian club, need to be paid in full by the player (there are local rules that stop tax being due) but by needing to put up 100% of the money upfront would end many transfers then and there. It works differently in Iberia to elsewhere as the tax implications do not make such clauses viable in other countries. All players in Iberia must have a figure set and agreed with the club. So "buy out" clauses are very rare elsewhere. Related to this is the Webster Ruling but I don't intend to go in to that now.

A "release clause" is far more common in that it gives a figure that the club would accept for the sale of a player to another club - but it is not legally binding except where both parties (clubs) are in the same country (for the sake of argument I should say that football Spain and Portugal count as the same country as do England and Wales) for legal purposes. These are normally unreasonably high figures (Messi at Barcelona for example) introduced to act as a deterrent for hostile bids - and even then the club could easily block a move. However, if a club in the same country does agree to match a release clause then the selling club would be obliged to ask the player if he is interested - there is no obligation on the player to make a move. For interested clubs outside of the country, the selling club may use it as a guide but are under obligation to accept a bid and may demand a higher figure.

There is then the becoming popular "termination clause" which is binding between the player and the club and if met would see an offer from anywhere accepted and the player given the opportunity to make a call on a move. This overcomes the issues associated with "buy out" clauses as the money would be paid by one club to another and about the legal proximity of the buying side.}

31 Aug 2020 00:29:10
I just read an article La Liga said Messi's release clause must be met.

Ed02. Sorry if this is a silly question. That statement from La Liga I understand is if Messi wants to leave for free, but still its very much possible for any negotiations between clubs for lower transfer fee. Am I right? And its also possible for a release for a much lower fee (if Messi and Barcelona agreed on a reduced term) . Am I right?

{Ed002's Note - Something has been lost in translation. It does not have to be "met" but is still legally binding. If he were to leave this summer Barcelona would be loking for something around the £200M mark probably involving othe rplayers.}

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