When Is A Football 'Sell On Clause' Triggered? CAS Decides in Malaga v Brighton

Those involved with football transfers will be familiar with sell-on clauses given that they are widely used in the world of professional football. The purpose of a sell on clause is simple. They are designed to allow the old club to share the benefit of a subsequent transfer of a player by receiving an additional payment in the event the player is transferred from the new club to another club.

Whilst the purpose of a sell on clause is clear, disputes between clubs over sell-on clauses frequently arise and I recently acted for Brighton & Hove Albion FC (Brighton) before FIFA’s Players Status Committee and the Court of Arbitration for Sport in one such dispute that Brighton had with Malaga FC.

The decision in the case provides helpful clarification as to the meaning of a transfer in the context of whether a sell on clause has been triggered or not.