Bournemouth defender Jason Pearce's move to Peterborough has collapsed due to a 50% sell-on clause in the player's contract.
The Cherries were considering an improved undisclosed offer from Posh for their 23-year-old skipper and then discovered Pearce's previous club Portsmouth were entitled to half of any transfer fee.
Club chairman Eddie Mitchell told the Bournemouth Echo: "We opened Pearcey's file and, to our horror, we discovered that, in 2007, the club entered into a sell-on clause that handed Portsmouth 50% of any sale. That horrified us and since then we have done nothing.
"My view on what was entered into at that time is that it seems ludicrous. As far as I know, Pearcey wasn't aware of this sell-on clause.
"I don't know who entered into it, but whoever was running the club at that time obviously felt it was a good idea. All I can say is we would never enter into something like that.
"Pearcey must have shown some potential when they signed him so it seems ridiculous to agree to something like that. To some degree, this clause jeopardises the player's future at this club."