Since Leeds United’s promotion back to the top flight, it has not been often the team or Board of Directors could be urged to take a leaf out of Newcastle’s book.
The Tyneside club finished just three places below the Whites in the table last term, despite spending much of the campaign threatened by relegation.
A failed takeover, disenchanted fanbase and threadbare squad have been the main talking points at St James’ Park over the past 12 months – but the club are set to receive a handsome windfall thanks to a three-year-old sell-on clause.
Blackburn Rovers signed Adam Armstrong from Newcastle back in 2018 after a successful loan spell with the then-League One side.
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Three years and 55 goals later, Armstrong has finally earned himself a move back to the Premier League, completing something of an Alan Shearer career arc in reverse, with a switch to Southampton.
The Saints have agreed a £15 million fee with Rovers for the former England youth international, as per various sources.
ChronicleLive report Newcastle are set to bank ‘in excess of £5 million’ due to a 40% sell-on clause which Blackburn agreed to when signing the striker.
This clause means Newcastle – Armstrong’s former club – are entitled to forty per-cent of the proceeds of any future transfer fee, which in this case is quite considerable.
A general view of Thorp Arch, Leeds United’s training ground
(Image: Joe Mewis)
This move in particular could be seen as negotiating inspiration for Leeds United, whose academy promises to churn out multiple exciting youngsters in the coming years.
Armstrong’s tale is one so many young footballers can empathise with.
Unable to break through at a Premier League club, he sought minutes elsewhere and has since blossomed.
Leeds United’s Thorp Arch academy will produce high-level footballers, that much is clear – but not all will become first-team regulars.
Those who do not make the cut, will need to be sold or released. In the event Leeds can agree fees for these players with clubs lower down the footballing pyramid, they should always consider inserting sell-on clauses.
This is in order to ensure that the club are still being rewarded for their work in developing players, long after they have left Thorp Arch.
Newcastle’s Armstrong clause is an exaggerated example – few clubs will agree to sell-on clauses as high as 40% – and those who leave Leeds are unlikely to be valued at £15 million in the next couple of years.
Nevertheless, these type of clauses could prove to be a small revenue stream for the club, as Newcastle have discovered this summer.
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