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**Damien** · 31-01-2011, 17:39

Quote:

Originally Posted by TheDaddy

Err why would they do that and release fee clauses are legally binding in the sense that if a club bids that amount or more they must allow the player to talk to the club.

Not in Spain. It's weird.

http://sportsillustrated.cnn.com/201...l?eref=writers

Quote:

When you apply the law legally, it is a different price.

That means one of two things, both of which increase the price. Firstly, it can mean adding the VAT at 18 percent. In the past, clubs have agreed to include VAT in the invoice for a player's transfer (which of course can be claimed back from the state). Now, if the bid is hostile, they will not. In other words, the buying club will have to pay the clause plus the 18 percent. So, Aguero's price rises from €45M to €53.1M.

The other option is for a club to simply refuse to sell -- until, that is, it is forced to.... A player (not the club) deposits the money, the value of the buyout clause, at the Spanish league and unilaterally breaks his contract. That money, of course, would be given to him by the buying club in order to buy himself out. The problem is that as soon as that money hits his account it counts as income -- even if it is then deposited elsewhere. And so it is liable to taxation at 44 percent. In other words, the €45M is the amount left after taxation. That is to say that Aguero's overall cost is €80.2M ($109M).

The other factor that's significant is that the buyout clause is a Spanish agreement. When it comes to international transfers -- to bids from aboard like the one supposedly from Chelsea -- it is irrelevant. Except as a symbolic price, a reference point from which you can negotiate.