transfer fee / compensation payment
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transfer fee
A sum of money that is paid to release a person, especially an athlete, or an item early from an existing contract. It is also called an 'Ablösesumme' (transfer fee).
Der Fußballverein zahlte eine hohe Ablöse für den neuen Stürmer.
The football club paid a high transfer fee for the new striker.
'Die Ablöse' (transfer fee/compensation payment) is the noun related to the verb 'ablösen'. 'Ablösen' means to 'release' something or someone from an obligation or contract through a payment. So 'die Ablöse' is the money for this process.
Der Verein konnte den Spieler nur durch eine hohe Zahlung aus seinem Vertrag ablösen.
The club was only able to release the player from his contract through a high payment.
When naming the reason for the payment, the preposition 'für' (for) with the accusative is almost always used. You pay an 'Ablöse' for a player or for a kitchen.
Der Nachmieter war bereit, eine Ablöse für die gut erhaltene Einbauküche zu zahlen.
The next tenant was willing to pay a compensation payment for the well-preserved fitted kitchen.
In a sports context, the word 'die Ablösesumme' (transfer fee) is often used. Typical verbs are 'eine Ablöse zahlen' (to pay a transfer fee), 'eine Ablöse kassieren' (to collect/receive a transfer fee), or 'eine Ablöse aushandeln' (to negotiate a transfer fee).
Für den Transfer wurde eine Rekord-Ablösesumme gezahlt.
A record transfer fee was paid for the transfer.
When looking for an apartment, 'Ablöse' (compensation payment) means that the new tenant pays the previous tenant money for furniture or built-in fixtures that remain in the apartment. Watch out for this word in apartment listings.
Die Wohnung ist schön, aber der Vormieter verlangt eine hohe Ablöse für die alten Möbel.
The apartment is nice, but the previous tenant is asking for a high compensation payment for the old furniture.
compensation
'Entschädigung' and 'Ablöse' can both be a money payment connected to compensation. However, 'Entschädigung' generally means money or material compensation for damage, loss, disadvantage, or injustice. 'Ablöse' is more specific: you pay it to release someone or something from a contract, for example in sports, or to the previous tenant for furniture you take over. The words can be confused because both payments are often one-time payments. As a guide: for damage or injustice, use 'Entschädigung'; for release from a contract or taking something over in an apartment, 'Ablöse' is more likely.
Für die eingebaute Küche verlangt der Vormieter eine Ablöse von 800 Euro.
The previous tenant is asking for a compensation payment of 800 euros for the fitted kitchen.
Die Bahn zahlte den Reisenden eine Entschädigung, weil der Zug viele Stunden Verspätung hatte.
The railway company paid the travelers compensation because the train was delayed by many hours.