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We cant defend's Posts and Other Poster's Replies To We cant defend's Posts

 

 

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21 Aug 2017 09:50:11
Hello Ed02
Please help me and clear my doubt mate.
Was it the release clause or buyout clause that lead to Neymar's departure? I am sure PSG cannot ativate a release clause of a player based in Spanish league.

Cheers mate.

We cant defend

{Ed002's Note - THey can't. However, Barcelona has agreed with two players that if any club matched their release clauses (which are legally only applicable in Iberia) then the player would be told and they would be given to option to pursue the transfer if they wish. It has happened before with Messi who turned down a transfer to one side who had agreed to meet Barcelona's then €250M price tag.}


1.) 21 Aug 2017 10:19:13
Thanks mate. So legally they just can't go and trigger the clause, but make the club aware they are willing to offer as much a it is in the contract!
Am I right that all players in la liga do have a buyout clause attached with their contract?

{Ed002's Note - You need to avoid terms like "trigger". All players in La Liga have a release clause that allows the player to buy himself out of his contract without tax implications. This was to address a ruling from around 30 years ago allowing players a way out of their contracts. It works differently in Iberia to elsewhere as the tax implications do not make such clauses viable. All players in Iberia must have a figure set.}


2.) 21 Aug 2017 10:49:56
Correct, Ed02
But then these players would never have the huge sum to buy themselves out from their contract which leads the buying club to facilitate a move on behalf of them
Which leads to tax implifications?
So what is the important difference between release clause and a buyout clause, As release clause itself help the players to buy themselves out from the current contract?

{Ed002's Note - No. You misunderstand.}


3.) 21 Aug 2017 10:57:55
I guess the first part is correct and I got it wrong in the second one! I am still confused between two clauses 🙄.
Well my understanding is as follows.

Release clause - Enables any club with in boundary of the law to buy a player from another club.

Buyout clause : The player could buy himself out from his contract! ( usually the buying club provides the funds, Ander Gerrerra from Spain to UTD ) .

Or this is completely Bull! 😄.

{Ed002's Note - No, it is not really like that.}


4.) 21 Aug 2017 11:11:30
Oh Jesus! I have been browsing from a week on this and all contradicts with each other.
I remember you saying Herrera's transfer to UTD came through a buyout clause 😄. I am totally confused mate. I just couldn't find a proper explanation on any source out there!
Every player in la liga has a releas clause which help him to buy himself out from the contract without tax implifications. This is clear as water.
I am struggling with the buyout clause! 🙄.

Help me please!

{Ed002's Note - Ignore La Liga, a "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 four years ago, hence the variance to the rules there. So "buy out" clauses are very rare. Related to this is the Webster Ruling but I don't intend to go in to that now.

Why are you bothering with all of this? Do you have a question about a specific player?}


5.) 21 Aug 2017 11:37:52
Wow! My doubt was on Neymar and you cleared it well. I had some confusion regarding clauses.
Thanks mate. I can assure you are the most knowlegavke rodeo clown I have ever come across! It's these I keep coming back to the site 😎.


 

 

 

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21 Aug 2017 11:37:52
Wow! My doubt was on Neymar and you cleared it well. I had some confusion regarding clauses.
Thanks mate. I can assure you are the most knowlegavke rodeo clown I have ever come across! It's these I keep coming back to the site 😎.

We cant defend

 

 

Click To View This Thread

21 Aug 2017 11:11:30
Oh Jesus! I have been browsing from a week on this and all contradicts with each other.
I remember you saying Herrera's transfer to UTD came through a buyout clause 😄. I am totally confused mate. I just couldn't find a proper explanation on any source out there!
Every player in la liga has a releas clause which help him to buy himself out from the contract without tax implifications. This is clear as water.
I am struggling with the buyout clause! 🙄.

Help me please!

We cant defend

{Ed002's Note - Ignore La Liga, a "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 four years ago, hence the variance to the rules there. So "buy out" clauses are very rare. Related to this is the Webster Ruling but I don't intend to go in to that now.

Why are you bothering with all of this? Do you have a question about a specific player?}


 

 

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21 Aug 2017 10:57:55
I guess the first part is correct and I got it wrong in the second one! I am still confused between two clauses 🙄.
Well my understanding is as follows.

Release clause - Enables any club with in boundary of the law to buy a player from another club.

Buyout clause : The player could buy himself out from his contract! ( usually the buying club provides the funds, Ander Gerrerra from Spain to UTD ) .

Or this is completely Bull! 😄.

We cant defend

{Ed002's Note - No, it is not really like that.}


 

 

Click To View This Thread

21 Aug 2017 10:49:56
Correct, Ed02
But then these players would never have the huge sum to buy themselves out from their contract which leads the buying club to facilitate a move on behalf of them
Which leads to tax implifications?
So what is the important difference between release clause and a buyout clause, As release clause itself help the players to buy themselves out from the current contract?

We cant defend

{Ed002's Note - No. You misunderstand.}


 

 

Click To View This Thread

21 Aug 2017 10:19:13
Thanks mate. So legally they just can't go and trigger the clause, but make the club aware they are willing to offer as much a it is in the contract!
Am I right that all players in la liga do have a buyout clause attached with their contract?

We cant defend

{Ed002's Note - You need to avoid terms like "trigger". All players in La Liga have a release clause that allows the player to buy himself out of his contract without tax implications. This was to address a ruling from around 30 years ago allowing players a way out of their contracts. It works differently in Iberia to elsewhere as the tax implications do not make such clauses viable. All players in Iberia must have a figure set.}


 

 

 

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