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A Strategic Rationale for the Use of Sell–On Fees in European Sports

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  • Oliver Gürtler

Abstract

In European team sports, contracts that govern the transfer of a player from one club to another often contain a clause specifying a sell-on fee. Such clause ensures that the selling club profits from a future transfer of the player. This article gives possible explanations for the use of sell-on fees. Besides rather obvious explanations based on risk considerations and wealth constraints, the article shows that a sell-on fee could be used for strategic reasons. In particular, the clubs may agree on a sell-on fee since it affects the behavior of the buying club in future transfer negotiations in a favorable way.

Suggested Citation

  • Oliver Gürtler, 2012. "A Strategic Rationale for the Use of Sell–On Fees in European Sports," Journal of Sports Economics, , vol. 13(1), pages 76-84, February.
    • Handle: RePEc:sae:jospec:v:13:y:2012:i:1:p:76-84
    DOI: 10.1177/1527002510392706
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    References listed on IDEAS

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    Cited by:

    1. Oliver Gürtler & Markus Lang & Tim Pawlowski, 2015. "On the Release of Players to National Teams," Journal of Sports Economics, , vol. 16(7), pages 695-713, October.

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