Donovan's Key Contract Clause

Tuesday, January 19, 2010 | View Comments
Visa Hosts FIFA World Cup Final Draw Viewing Event with Landon Donovan

Back when news of Landon Donovans's new Galaxy contract broke, I wrote that, contrary to the popular opinion that he was giving up on his European ambitions, getting the deal he did was an incredibly smart move on his part.


Not only that, but I speculated that perhaps Donovan had a "reserve" put into his contract that would allow for a European transfer should a club there meet a minimum price. Though not confirmed, Andrea Canales references such a clause in a piece on Donovan yesterday, noting a reported valuation of €7 million (roughly $10 million).


From my post the day the Galaxy contract was announced:

Besides, and I'm simply speculating here, it's possible that Donovan's new agreement allows him a modicum of control over any transfer that might come along. Anything is possible, and I wonder if Donovan only agreed to sign the new deal if the league promised to sell him if a minimum amount they would want to justify letting their premier American player go was met. Call it a "Donovan Reserve".

If there is such a clause in Donovan's brand new MLS contract, it immediately changes how people should perceive the deal; say what you want about the dog and pony show that LA put on (something most American sports organizations would do with a star player), successfully negotiating himself an out makes it a very good deal from Donovan's end. I continue to say that Donovan knows where he stands; impress at Everton (a loan he knew was coming when he signed the deal), and there was a reasonable chance he might find a buyer. If not in the spring, he would still have another shot to earn himself a move if he played well at the World Cup. Two ways to prove his worth, and written-in-stone out clause.


The number itself is a different question. For a player like Donovan, it's not an obscene amount of money; for a player like Donovan with no European success on his CV, it's more questionable. Donovan's is surely aware of that fact, and knows it will take a strong performance at Everton and/or the World Cup to raise his price high enough. But there's the added bonus of clubs knowing exactly how much it will take to get him out of MLS. A no-haggle price might draw more attention than would the prospect of negotiating with the Galaxy and the League.


Also remember that Donovan and his representatives had to balance the reserve against his new MLS contract in case nothing worked out abroad. The League could keep Donovan around at his old rate for two more seasons, but wanted to lock up their biggest American star, while Donovan wanted the security and pay raise of a new contract, but wanted the control of an out clause if an opportunity presented itself. In that situation, $11 million seems about right. Again, we're speculating, but it seems to make sense.


From what I gathered, it's doubtful Everton would come in for Donovan at the rumored price, no matter how well he plays. He'll need a massive two months, if his loan isn't extended (a possibility), to have any chance of heading to Europe in July. Guessing at the likelihood of that happening would be just that, guessing.


Donovan is talking about staying in Merseyside past March. He likely has a contract clause that could get him to Europe. I think his European ambitions are extremely clear.
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