What happens With Sell On Clause

Discussion in 'Bulletin Board' started by ReadingRed, Jan 31, 2018.

  1. Rea

    ReadingRed Well-Known Member

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    When a player swap is involved?
    Just thinking if Gus goes in a straight swap.
    What happens to Torquays 15%
    If that is there sell on?
     
    ReadingRed, Jan 31, 2018
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  2. Sab

    Sabre-toothed Tyke Well-Known Member

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    They have to determine the players' true value and the percentage is paid based on that. If a club has a 10% sell on for a player but the player is involved in a straight swap with another club, the two clubs have to agree on a value so that the sell on can be paid to the players' initial selling club.
     
    Sabre-toothed Tyke, Jan 31, 2018
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  3. Rea

    ReadingRed Well-Known Member

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    Thank you.
    Thought that maybe the case, but wasn't sure.
     
    ReadingRed, Jan 31, 2018
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  4. Sab

    Sabre-toothed Tyke Well-Known Member

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    No worries pal.
     
    Sabre-toothed Tyke, Jan 31, 2018
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  5. She

    Sheriff Well-Known Member

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    The valuation has to be 'fair' on both sides, i.e. based on reasonable market value, as VAT is payable on transfer fees.

    HMRC would have something to say about it if they felt the fees were inappropriate.
     
    Sheriff, Jan 31, 2018
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  6. Dan

    DannyWilsonLovechild Well-Known Member

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    Surely VAT would net off though?
     
    DannyWilsonLovechild, Jan 31, 2018
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  7. She

    Sheriff Well-Known Member

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    It would ultimately, but still has to be accounted for in both companies. Both would have and input and output entry in a player swap deal.
     
    Sheriff, Jan 31, 2018
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  8. Dan

    DannyWilsonLovechild Well-Known Member

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    Yes, obviously, just not sure what the HMRC would benefit from if the amounts were higher or lower as wouldn't impact on CTax or VAT. Of course, a company should always keep accurate records irrespective.
     
    DannyWilsonLovechild, Jan 31, 2018
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