Skip to content

Liverpool owner admits Luis Suarez had £40m buy-out clause

Mar 3, 2014, 7:43 AM EDT

Boston Red Sox Spring Training Getty Images

Liverpool owner John Henry has reportedly admitted that Luis Suarez had a 40 million pound ($67 million) release clause in his last contract and despite Arsenal’s £40 million plus £1 offer last summer, the club simply refused to sell the striker.

“Luis Suarez is the top scorer in the English Premier League which is arguably the top soccer league in the world,” Henry noted while speaking as a panel member at the MIT Sloan Sports Analytics Conference last weekend.

“And he had a buy-out clause – I don’t know what degree I should go into this – but he had a buy-out clause of £40m. So Arsenal, one of our prime rivals this year, they offered £40m and one pound for him and triggered his buy-out clause.”

The story concerning Suarez’ possible transfer was one of the biggest transfer topics of last summer. The Uruguayan striker, who was in the midst of his 10-match ban for biting Chelsea’s Branislav Ivanovic, was unsettled at Anfield. He wanted to play in the Champions League and when he heard of Arsenal’s interest in him, considered putting in a formal transfer request or even taking legal action.

His basis for a potential legal action was the presence of the buy-out clause, a contractual provision that typically allows a player to leave a club if the stated value is triggered by an offer. Given Arsenal’s now famous £40m + £1 offer, it would seem Suarez had the grounds to bring such a suit.

So how did Henry get around the problem? Staunch refusal, for one thing.

“What we’ve found over the years is that contracts don’t seem to mean a lot in England – actually not in England, in world football. It doesn’t matter how long a player’s contract is, he can decide he’s leaving.

“We sold Fernando Torres for £50m. We didn’t want to sell but we were forced to. For the first time (with Suarez) we took the position that we weren’t selling.

“Since apparently these contracts don’t seem to hold, we took the position we’re just not selling and it’s been great for Luis, it’s been great for us, and what will happen at the end of year, I think we’re going to make Champions League and we have a small chance of winning the Premier League this year.”

Sitting in 2nd place four points adrift of leaders Chelsea and with a favorable schedule remaining, few will deny Liverpool’s title chances. But what about the legal implications of what Liverpool has done with regards to this buy-out clause?

Did John Henry pull off something illegal? Did/does Arsenal have a legal claim to Luis Suarez? Will this situation render buy-out clauses unenforceable in world soccer?

No, no and no. The real key in this case, as in all buy-out clause situations, is the structure of the language in the clause. And in Suarez’ case, the language was incredibly broad. The contract did not say – ‘if a bid of £40m is received, Liverpool must sell.’ As explained by Professional Footballers’ Association boss Gordon Taylor last August, it said – “if there is no qualification for the Champions League and if there is a minimum offer of £40m, then the parties will get around the table to discuss things.”

In other words, by including this good faith language requiring the parties to discuss the possibility of a transfer, that hugely softened Suarez ‘buy-out’ clause to the point where, well, it wasn’t really a buy-out clause at all.

Liverpool abided by the terms of the agreement, met with Suarez, discussed with him that they didn’t want to let him go – or, as many speculate, that he would stick it out one more season and could leave if the club didn’t qualify for Champions League – and that was it.

Terms of the contract were met. No legal claim for Suarez or Arsenal. Really, really good lawyering on the part of Liverpool.

Latest Posts
  1. MLS Snapshot: New York City FC 0-1 Sporting Kansas City

    Mar 28, 2015, 9:04 PM EDT

    Ike Opara, Sporting Kansas City Ike Opara, Sporting Kansas City

    Sporting KC get their first victory of the season, while NYCFC suffer their first defeat of the year — and history.

  2. EURO 2016 qualifying roundup: Netherlands, Italy rescue draws; Bale, Wales go top

    Mar 28, 2015, 6:30 PM EDT

    Gareth Bale, Wales Gareth Bale, Wales

    It wasn’t a great day to be a traditional European giant, but it was a great day to be Gareth Bale and Wales.

  3. MLS Snapshot: New England Revolution 2-1 San Jose Earthquakes

    Mar 28, 2015, 5:00 PM EDT

    Kelyn Rowe, New England Revolution Kelyn Rowe, New England Revolution

    A dominant performance — and the three points to match — from the Revs…finally.

  4. Orlando City SC field a four-man bench due to injuries, MLS playing through int’l window

    Mar 28, 2015, 4:30 PM EDT

    Kaka, Orlando City SC Kaka, Orlando City SC

    Think that MLS playing through int’l windows isn’t a big deal? Let’s ask Orlando City what they think about it.

  5. If you only read one story on Sol Campbell today, let it be this one.

    Mar 28, 2015, 2:50 PM EDT

    Preview Screening of 'Invincibles' Getty Images

    Campbell was capped 73 times, and is England’s second-youngest captain. Clearly he knows that, too.

  6. WATCH: Gareth Bale just scored a nice free kick for Wales… if you’re into that sort of thing

    Mar 28, 2015, 2:21 PM EDT

    Israel Wales Euro Soccer AP

    A win would give Wales a two-point lead in Group B with a game-in-hand on both Israel and Cyprus.

  7. Freddy Adu has joined a new club, this one in Finland

    Mar 28, 2015, 1:39 PM EDT

    CBMeXdCVIAAteBM-300x225

    The Canaries finished in 7th place last season in the Veikkausliiga, Finland’s top-flight.

  8. Klinsmann’s USMNT struggles, experimentation in friendlies: Does it really matter?

    Mar 28, 2015, 12:54 PM EDT

    Denmark Soccer Usa AP

    Should the States’ losses in friendlies represent anything other than a concern at the lack of US youth readiness for the big stage?

  9. Liverpool’s Glen Johnson linked with summer move to, January start date with Barcelona

    Mar 28, 2015, 12:08 PM EDT

    Liverpool Training Session Getty Images

    This likely comes as a surprise to Liverpool fans, as Johnson is widely treated rightly or wrongly as a scapegoat by Reds supporters.

  10. Klinsmann explains philosophy behind mad scientist lineups, formations for USMNT

    Mar 28, 2015, 10:37 AM EDT

    Denmark US Soccer AP

    Does the embattled USMNT coach have a point? I’m again bracing for the comment section when I say… I think so.

  11. Russia wants full points from match abandoned after Akinfeev struck in head by flare (video)

    Mar 28, 2015, 8:50 AM EDT

    Russia's Igor Akinfeev hit by flare at Montenegro, match later abandoned Getty Images

    Given UEFA president Michel Platini’s concerned words and warning about fan violence just this week, could he do something even more harsh?

  12. Marsch critical of Klinsmann’s experimentation, lack of USMNT “identity”

    Mar 28, 2015, 7:55 AM EDT

    Jesse Marsch AP

    The States are 1-4 in their last five matches, all four coming on the road (Colombia, Ireland, Chile and Denmark).

  13. Injury update: England likely facing Italy without Welbeck, Sterling

    Mar 27, 2015, 10:00 PM EDT

    England v Slovenia - EURO 2016 Qualifier Getty Images

    Both Danny Welbeck and Raheem Sterling will most likely be out of England’s friendly vs. Italy on Tuesday.

  14. Wayne Rooney after Euro qualifying win over Lithuania: Other nations ‘frightened’ of England

    Mar 27, 2015, 8:20 PM EDT

    Scotland v England - International Friendly Getty Images

    England trounced Lithuania 4-0 in a Euro qualifier for their seventh-straight win since the World Cup, and captain Wayne Rooney likes what future lies ahead for his country.

  15. Young Mexican-American Ventura Alvarado picks USMNT over El Tri

    Mar 27, 2015, 6:42 PM EDT

    Pumas UNAM v America - Clausura 2015 Liga MX Getty Images

    22-year-old Ventura Alvarado asserts that he would like to play for USMNT in the long term.

  16. Wales manager Chris Coleman confident in Gareth Bale after criticism from Real fans

    Mar 27, 2015, 6:00 PM EDT

    Wales v Cyprus - EURO 2016 Qualifier Getty Images

    Manager Chris Coleman say Gareth Bale is only focused on the Wales’ “job in hand.”

  17. Luis Suarez believes FIFA treated him like a ‘hooligan’ following bite incident

    Mar 27, 2015, 4:50 PM EDT

    FC Barcelona v Rayo Vallecano de Madrid - La Liga Getty Images

    Suarez doesn’t think he could be classified as hooligan after his biting incidents.

Featured video

Week 30: Headline PL moment