It will probably depend contract to contract. Some will be “percentage of next transfer fee” and some will be “percentage of future profit”. Think the second one is much more rare and probably doesn’t apply to Doughty.
I remember benefiting in a similar way from this in the past where we had a sell on based on profit then the team we sold the player to did the same when they sold him so when the third team in this chain sold the second one profited more and we got another percentage of that.
Sometimes there's a follow on clause, so Stoke may have put a sell on clause in the contract when he signed at Luton, and therefore if they get let's say 20m and Stoke had a 20% clause, Stoke get 4m. However if our clause was a 25% sell on fee, that's still active on future monies, so we would then get 25% of the 4m, so 1m.
I've genuinely never heard of a 'follow on' clause. Can you name any examples?
I've only ever heard of a sell on clause which (if we had one) would've been sorted when Stoke sold him to Luton.
If Luton sell him to Man u, why would they have to give us a % when we don't have any agreement with Luton over him?
I’m with Chris here, surely the sell on clause dies after the first move. In this example we sold Doughty to Stoke then got a sell on fee when he signed for Luton. Then the sell on died.
They're often clauses on profit made, which is how they can continue (based 100% on playing FM)
We were still getting payments for Defoe's moves in 2005 so it is possible but would all hinge on 1. The details of the deal and 2. What profit, if any, is made.
If the deal was that we get a percentage of any profit Stoke make over and above the initial fee they paid ys and if Stoke have a similar deal with Luton, then it is possible we'll get something but I wouldn't hold my breath or splash out on a new range rover.
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Stoke must be kicking themselves for letting him go cheaply, albeit he never really established himself there.
If the deal was that we get a percentage of any profit Stoke make over and above the initial fee they paid ys and if Stoke have a similar deal with Luton, then it is possible we'll get something but I wouldn't hold my breath or splash out on a new range rover.