The Hidden Power of the Sell-On Clause
Football transfers tend to make headlines for the upfront fee, not the small print. Yet tucked away in those details lies one of the most quietly influential mechanisms in the modern game: the sell-on clause. It’s the clause that allows a selling club to benefit financially if a player they once owned moves again for a profit. For smaller clubs, it can be a lifeline. For larger ones, it’s a hedge against future stardom.
Sell-on clauses have existed for decades, but they’ve gained far more importance as player valuations have spiralled. Clubs no longer see them as a courtesy or insurance policy, but as a financial strategy.
From Southampton to Liverpool to Roma: The Long Game
Consider Southampton, long regarded as one of England’s best producers of talent. When they sold Adam Lallana and Sadio Mané to Liverpool, they negotiated fees that looked generous at the time. But when Liverpool later sold Mané to Bayern Munich, Southampton reportedly received a bonus due to a smartly embedded sell-on clause.
It’s a ripple effect: one good academy player can generate income twice or even three times over.
A similar story can be told about Roma and Mohamed Salah. Chelsea, who originally bought Salah from Basel and later sold him to Roma, included a clause that entitled them to a percentage of any future sale. When Roma sold Salah to Liverpool for around £36 million, Chelsea quietly pocketed a slice despite having long moved on from the Egyptian winger.
The Financial Logic Behind the Clause
A sell-on clause is typically expressed as a percentage of the next sale price, either based on the total fee or the profit made. The difference matters. A “percentage of profit” clause means a club only earns money on what the next club gains over their purchase price. A “percentage of future sale” means they get paid regardless of profit or loss.
For example:
-
If Club A sells a player to Club B for £5 million and adds a 20% of future sale clause, then Club A earns £2 million if Club B later sells him for £10 million.
-
If it’s a 20% of profit clause instead, Club A only earns £1 million, since the profit was £5 million.
It’s the fine print that can make or break a future windfall.
When the Clause Changes a Club’s Future
Brentford’s rise through the leagues owes something to their transfer precision. When they sold Ollie Watkins to Aston Villa, they reportedly included a sell-on clause. Villa’s sale of Watkins could one day generate further income for Brentford, helping sustain their model of reinvestment.
Similarly, smaller European clubs often depend on these clauses to survive. FC Nordsjælland in Denmark, who helped develop Ghanaian winger Mohammed Kudus, secured a cut when Ajax sold him to West Ham. For a club with limited broadcast revenue, that clause mattered as much as a full season’s gate receipts.
The Lessons of Missed Opportunities
Not every club gets it right. When Manchester United sold Gerard Piqué to Barcelona, there was no significant clause protecting their interests. Years later, as Piqué became one of Europe’s best defenders, United got nothing beyond the original modest fee. The same goes for countless academy graduates who became world-class after leaving for cheap.
Clubs have learned since. Today, even a £500,000 youth sale can come with layers of clauses covering appearances, international caps, and resale percentages. It’s the modern football equivalent of royalties.
A Clause for Every Era
In many ways, the sell-on clause has become a reflection of football’s financial reality. Clubs are now asset managers as much as sporting entities, building long-term value from short-term deals. What once looked like a side note in a contract can now fund a new training centre or cover a season’s wages.
Whether it’s a Premier League powerhouse or a League Two academy, the sell-on clause ensures that a club’s past work can continue to pay off in the future. It rewards vision, patience, and faith in development—a rare combination in a sport often obsessed with instant success.
In short:
The next time a player moves for a big fee, don’t just look at who’s buying or selling. Check who’s smiling quietly in the background. They might just be cashing in on the smartest clause they ever wrote.
