Ballard is allegedly being closely watched by Everton, and Sunderland is anticipated to make a bid of about £20 million for the former Arsenal defender.
That would be excellent news for the Gunners, as a possible deal would benefit Arsenal.
According to Football.London, Arsenal included a ‘significant’ sell-on clause in Ballard’s transfer deal in 2022. While the exact percentage of this clause hasn’t been officially disclosed, further details may emerge if and when Ballard’s sale occurs.
Despite Arsenal initially receiving £2 million for Ballard’s transfer, it appears they may have the opportunity to increase their earnings in future transfer windows thanks to this sell-on clause.
Ballard has been a key figure for Sunderland in the Championship this season, making 39 appearances for the club. Additionally, he has represented Northern Ireland at the international level, featuring prominently in recent matches, including a start in a friendly against Scotland during the last international break.
Sell-on clauses are standard contractual provisions included in a player’s transfer agreement between two clubs. These clauses guarantee that the selling club will receive a portion of any future transfer fee if the player is later sold to another team.
Sell-on clauses function through negotiation and activation:
1. **Negotiation**: During the initial transfer, the selling and buying clubs agree on a percentage for the sell-on clause, typically between 5% and 20% of any future transfer fee. Occasionally, such as in Arsenal’s arrangement with Marquinhos’ loan to Fluminense, the sell-on clause may reach as high as 50%.
2. **Triggered Clause**: If the player is subsequently sold to a third club, the selling club from the initial transfer is entitled to the agreed percentage of the new transfer fee.
For instance, if Club A sells a player to Club B for £20 million with a 10% sell-on clause, and Club B later sells the player to Club C for £30 million, Club A would receive £3 million (10% of £30 million).
Sell-on clauses serve several purposes:
– **Protection for Smaller Clubs**: They provide assurance and potential financial benefits for smaller clubs selling promising talents to larger ones, ensuring a share of a player’s success if they are later sold for profit.
– **Financial Stability**: Sell-on clauses offer selling clubs financial stability by allowing them to recoup more of their initial investment and reinvest funds into the club.
– **Negotiation Advantage**: In negotiations, sell-on clauses can be used as leverage. A selling club might accept a lower initial transfer fee in exchange for a higher sell-on percentage.
It’s worth noting that while sell-on clauses are common, recent FIFA regulations aimed at reducing third-party ownership (TPO) of players have led to a decrease in their prevalence.
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