LOSC Lille maintains a resale clause on Rafael Leao despite its transfer to AC Milan in 2019. This “Sell on Fee” was renegotiated in May 2023 following the litigation involving Sporting Lisbon. According to the revelations of the Italian media La Verità, the revised clause provides for a progressive mechanism.
For a sale of less than 45 million euros, the LOSC will not receive any amount. Between 46 and 51 million euros, the Lille club will receive a maximum of 5 million euros. Beyond 51 million, the LOSC will receive 20% of the added value to a ceiling of 100 million euros. The total amount paid to the French club may not exceed 14.8 million euros.
To illustrate this by example: for a sale at 80 million euros, LOSC would receive 10.8 million euros: 5 million fixed more 20% of 29 million euros net. Beyond 100 million euros, no additional amount will be due to the northern club.
The initial agreement of July 2019 was different. The LOSC received nothing up to 28 million euros, then a variable part of the 7 million following, and finally 20% on the rest without limitation of amount. The renegotiation follows the settlement of the dispute with Sporting Lisbon.
In 2018, Rafael Leao unilaterally broke his contract with the Portuguese club after an ultra attack at the training center. Sporting had won their case and demanded 16.5 million euros more interest.
LOSC has set its debt to Sporting
AC Milan confirmed in its accounts of June 30, 2023 having renegotiated the terms of the clause with the LOSC in May 2023. This modification comes after AC Milan paid more than 20 million euros to LOSC Lille to settle the debt to Sporting. The new Leao contract, signed in May 2023, had been placed in a fiduciary deposit with the player's lawyer with instruction to destroy it if the LOSC did not honor its debt to Sporting before June 30, 2023.
This modified clause represents a compromise between the three parties. It allows Milan to reduce its future financial obligations while guaranteeing LOSC participation in potential capital gains on its former player.
