Cheick Tiote has been linked with a possible move away from Newcastle already this summer, but we have to remember that a lot of the reports in the newspapers could be made up – and it’s also very early in the transfer season.
Cheick Tiote - do FC Twente have sell-on clause?
Maybe one reason Cheick’s name keeps coming up is that he hasn’t enjoyed really good form since his first season on Tyneside, after he joined three years ago from FC Twente, after being scouted for a couple of years by Graham Carr.
One such rumor is that Lokomotiv Moscow are readying a big bid, and there have been reports in Holland that his former club FC Twente could benefit from any sale, because they inserted a sell-on clause in his contract, when he signed for Newcastle for £3.5M.
There’s been some confusion about sell-on clauses in the press, and the reason they are in a contract is usually when a player is sold early on in his career, and he could later become a big star with a huge transfer fee, and it’s a way for the initial selling club get a future percentage (maybe 25%) of the profit on any future deal.
If Newcastle do manage to sign 18 year-old Will Hughes for £10M from Derby County then they would probably want a sell-on clause in the deal, so that if Newcastle sell him for more than £10M in the future, they get a percentage of that profit.
So if there isn’t a profit on a future deal, the selling club doesn’t get anything – which will be the case with Andy Carroll – Newcastle would only get money if the transfer fee Liverpool get is over £35M, and some readers have written that Newcastle can take 25% (if that’s the sell-on clause percentage) off his fee of £15M because of the clause – but that’s not the way it works.
So let’s say Tiote sells for £13.5M (just an example) and the sell-on clause Twente have is 25% – then they would be due 25% of £13.5M – £3.5M which is £2.5M – so Newcastle would get the remaining £11M for him if his selling price is £13.5M.
It reduces the amount Newcastle get for Tiote, but Newcastle would still make a handsome profit if he’s sold for a lot more than we bought him for.
You can also reach Ed at firstname.lastname@example.org