Mutual Termination Agreement: Fill & Download for Free

Most likely, if a clause in the mutual termination specifies that no further actions may arise out of the facts of the matter at hand. If new facts arise, I’m willing to say that the scope of the mutual termination agreement would not apply.

Typically, they can’t (and don’t). There’s a handful of things that come into play here.Relegation Release Clause - A contractual clause (which favours the player) that automatically triggers if a club is relegated. The owning club must accept a bid if a higher-division club makes an offer matching a pre-determined (usually quite low) value. Many contracts of established Premier League clubs will include this clause. Not so much for newly promoted teams. It generally leads to Part I of what is often called “The Fire Sale”.Fire Sale - For the high-earning players who don’t leave on relegation release clauses, the club will usually look to offload for a fee. But buying clubs aren’t stupid; they know the score. So the bids will often be low-balled; potentially even less than a relegation release clause would have been. The selling club may hold out, and if the player is good enough and a bidding war starts, they can sometimes get good money. But for average or poor players, it is often less about the money and more about getting the player off the wage bill.Contract Lapses and Mutual Terminations - Highly-paid players out of contract will not be renewed and some players (usually the older ones) will be given a mutual termination; basically an agreement to pay off either part or all of the remainder of their contract. Sunderland were still paying a handful of “residual” salaries through mutual terminations for more than a year after relegation.Relegation Wage Drop Clause - For the players that are still around… again, a contractual clause which is triggered if the club is relegated, this automatically reduces the player's salary by a pre-determined amount (e.g. 20%) if the club is relegated. This is often counterbalanced by an equally-sized Promotion Wage Increase Clause which triggers if the club is promoted back. Good agents will fight not to have this clause in their player’s contracts while clubs that feel they’re “safe” Premier League teams might be tempted to not worry about it. But clubs that don’t have this clause can find themselves in bother.After all of that, you should have reduced your wage bill by a big chunk. Yes, you’ve lost your best and most promising players and your squad is looking much thinner, but you’re less likely to go bust. One last bit of help…Parachute Payments - A sometimes controversial Premier League mechanism, this is a set of payments made to former Premier League clubs to ‘help’ them financially re-balance after relegation. Each Premier League teams (currently) receives around £75m in TV revenue. A relegated team will receive 55% of that amount the first year after relegation and 45% of that in the second year (if they haven’t already bounced back). If the team was a long-term Premier League team and not just a one-season-wonder, then they get a third year’s parachute payment equal to 30% too. It means a former Premier League team can receive up to £90m. The controversy is that this is £90m “extra” that other EFL teams don’t get, that puts them at an advantage. The counter-argument is that this money is usually swallowed up in servicing debt and the painful reorganisation needed to become financially sustainable in the EFL. Without it, some teams would likely fold.Most relegated teams adapt just fine. Rarely (as in Newcastle United’s case) the relegation will have a minimal impact financially, they’ll keep some decent players, and bounce straight back the Premier League. Aston Villa and Norwich have both made it back into the Premier League. Clubs like West Brom, Fulham and Swansea are doing fine in the Championship.Occasionally though, it goes wrong. My club, Sunderland, made a total mess of this. They had an oversized Premier League wage bill, too many players were missing relegation wage drop clauses, relegation release clauses of the best players were set too low, most of the players they remained were crap and nobody wanted to buy (Jordan Pickford’s £25m move to Everton was the exception), and the club had huge structural debts which swallowed the parachute payments. As a result, the club nearly went bust and ended up dropping straight through into League One. Thankfully, this is rare.

No. A written agreement or acknowledgement with a landlord for a tenant to vacate prior to the expiration of the lease term would constitute a mutual termination of the lease as of that date.