What does sell-on fee percentage mean?

The sell-on clause is a common feature in transfer contracts between sporting clubs. This clause allows the selling club to secure a portion of the profits if the player they sold is later transferred to another club.

By including the sell-on clause, the selling club receives a lower immediate transfer fee, but they retain the right to a percentage of any future transfer fees the player may generate.

This clause is often used as a means of protecting the selling club's investment in a player, ensuring that they can benefit financially if the player's value increases over time.

The sell-on clause can also incentivize the selling club to invest in young, promising players, knowing that they can potentially profit from their future transfers.

The percentage of the future transfer fee that the selling club is entitled to can vary depending on the terms of the contract. It is usually negotiated between the two clubs involved in the initial transfer.