Contract problems.

[Champagneblade]

Imagine if you were the best steelworker in the city, on your no contract contract

Foundry in another city gets wind of how good you are, and offer you double money
You accept, Sheffield can do nothing to stop you going, losing their best man
New company now have to let someone on the shop floor go to make room for you
They don't want someone to do to them what they have just done to Sheffield, so they ask you to sign a contract for 3 years

This gives you financial security for your relocation, and them security that you cant walk away.

After 12 months, another city hears about you, and offers you double wages again
You accept, but explain you have 2 years of a contract to go
They have to reach out to your employer, who asks for compensation (transfer fee) as they are losing their best man
Both firms agree on a number, you are released and sign for your new employer.

Re the Manager - as above but -
After 1 season your performance isnt good enough, but they gave you a 3 year contract to stop a bigger club poaching you
You are willing to honour your contract, they want a change
Why should you lose out on wages?
They have to pay you a fee or wages until your in a new job.

The opposite of this is Russell Martin
He does well at Swansea, so Southampton want him
He signed a contract, so cant just walk away from Swansea
The 2 clubs agree a compensation figure, which they feel is worthy of losing their manager for

Rightly or wrongly, a footballer is a commodity as well as a employee
Think of the Messi effect in Miami - he doesnt just do a job, he is a revenue stream critical to the business

Any commodity will cost, therefore a contract will be needed to protect it

That’s very nicely explained mate. Bravo!