Conclusion
Release clauses are an interesting part of the transfer market, and one which Liverpool have already made use of this summer.
Though they can be attractive to a buyer, they can also be a disadvantage, with the full fee needing to be paid up front and no room for negotiation.
For this reason, Liverpool are likely to allow Szoboszlai’s clause to expire before entering negotiations, preferring to pay in instalments and include other clauses in the deal.
What Are Release Clauses and How Do They Work?
Introduction
Release clauses are a common feature of football transfers, but what are they and how do they work? This article will explain the concept of release clauses and why Liverpool may not like them.
What is a Release Clause?
A release clause is a set fee agreed upon when a player signs a contract with a club, allowing another club to sign that player if the fee is met. The release clause is usually written into the player’s contract and can be activated by any club willing to pay the agreed fee. For example, if a player has a release clause worth £60 million in their contract, a buyer could ‘activate’ that by agreeing to pay £60 million, therefore obliging the player’s club to accept. The player is then permitted talks with the buying club over a move.
Who Has a Release Clause?
There are a number of examples of players with release clauses in their contracts, with three of those emerging as part of Liverpool’s transfer plans this summer. Liverpool were able to sign Alexis Mac Allister from Brighton due to a release clause agreed when he signed a new deal with the Sussex club in October. Meanwhile, Celta Vigo midfielder Gabri Veiga has a release clause worth €40 million and RB Leipzig’s Dominik Szoboszlai’s contract includes a €70 million clause which expires at the end of June.
Why Might Liverpool Not Like Them?
It is widely acknowledged that no player in the Liverpool squad has a release clause in their contract – including Mohamed Salah. Such is the club’s aversion to these clauses that Emre Can was allowed to depart on a free transfer in 2018 rather than sign an extension, as the German would only do so if a release clause was agreed. As a buying club, at times they can suit Liverpool, such as with the signing of Mac Allister, who was available for significantly below his market value. On the other hand, a prime example of why the club would avoid paying a release clause comes with Szoboszlai. Though Szoboszlai may be considered worth €70 million, a release clause typically requires the full fee to paid as a lump sum. Almost every club will pay for signings in instalments, agreed between buyer and seller, and therefore Liverpool are more likely to allow Szoboszlai’s clause to expire before entering negotiations with Leipzig.
Advantages and Disadvantages of Release Clauses
Release clauses can be both advantageous and disadvantageous depending on the situation. For buyers, they can be attractive as they allow them to sign players for significantly below their market value. On the other hand, they can be disadvantageous for buyers as they require the full fee to be paid up front with no room for negotiation. For sellers, they can be advantageous as they guarantee that they will receive the agreed fee for the player. However, they can also be disadvantageous as they limit the amount of money that can be received for the player.
Conclusion
Release clauses are an interesting part of the transfer market, and one which Liverpool have already made use of this summer. Though they can be attractive to a buyer, they can also be a disadvantage, with the full fee needing to be paid up front and no room for negotiation. For this reason, Liverpool are likely to allow Szoboszlai’s clause to expire before entering negotiations, preferring to pay in instalments and include other clauses in the deal.