What are buy-back clauses? How do they work and major examples
By Callum Rice-Coates,
2024-08-27
The transfer window is now in its final week but there may yet be some big deals to come before it shuts until January. Chelsea, of course, have been the Premier League’s most active club, while the likes of Liverpool and Manchester City have opted for a more low-key window.
Several deals, including Manchester United ’s recent sale of winger Facundo Pellistri to Panathinaikos, have included buy-back clauses. These are particularly popular for clubs letting young players with significant potential leave.
But how exactly do buy-back clauses work? In simple terms, they are a clause included in a player’s contract that allows the selling club to re-sign them should they impress and develop at their new club.
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The club buying the player in question may often be reluctant to agree to a buy-back clause, given the possibility that they might then lose out a year or two down the line. In that scenario, a future fee that suits both parties would need to be agreed.
For a selling club, it can be a win-win situation: allowing a player who has presumably struggled for game time and lacked consistency to leave for pastures new, potentially rediscovering their form, and keeping the option open of a future return.
The buy-back fee is typically higher than the original sale fee and the clause usually comes with some caveats. For example, the buy-back clause might only be activated after two seasons or in certain transfer windows.
If a buy-back clause is activated, players are contractually obliged to return to their former club. Occasionally, buying clubs have moved to avoid the possibility of losing a player, paying to remove a buy-back clause.
What is a first-refusal clause?
A first-refusal clause differs from a buy-back clause in that there is no set fee agreed. Instead, the selling club will be notified if the player is available for transfer at a later date, in theory giving them an advantage over other interested clubs.
Importantly, a first-refusal clause is less formal than a buy-back clause, but might be deemed more acceptable for the buying club.
Major examples of buy-back clauses
Villa exercised their clause on Jaden Philogene (Image credit: Getty Images)
Buy-back clauses are more likely in deals where the selling club are reluctant and the buying club are determined to get their man.
Recent examples of a buy-back clause being triggered include Jaden Philogene's move back to Aston Villa from Hull this summer. The 22-year-old winger impressed in the Championship, enough for Villa to bring him back.
More often than not, though, buy-back clauses are not exercised. Chelsea have a £68m option to bring Tammy Abraham back to Stamford Bridge, but he remains at Roma . Manchester City , meanwhile, could have signed Douglas Luiz from Villa but he instead joined Juventus .
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