The disappointment following the news that Malik Tillman won’t be re-joining Rangers next season was somewhat offset by the compensation they will receive from Bayern Munich. 

The Bundesliga champions decided to cancel Rangers’ option-to-buy clause that was inserted when Tillman moved to Ibrox last summer. 

We exclusively revealed Rangers would be remunerated by Bayern with an initial £1 million cancellation fee, plus 10 percent of any fee that the German side received from Tillman’s impending sale this summer.

There’s growing interest in the 21-year-old and it’s understood he’s likely to depart this summer with English clubs lurking. 

The cancellation clauses were inserted into Tillman’s loan deal last summer in order to protect Rangers, as there was an acceptance among senior officials that Bayern could look to sell elsewhere for a higher fee than the £5.8 million exclusive option held.

It’s common practice amongst elite clubs to enforce a buy-back option when loaning out highly-rated youngsters. Rangers believed that Tillman could develop into an elite talent and they focused on bringing the naturally shy youngster out of his shell.

Former Sporting Director Ross Wilson enjoyed an excellent relationship with Tillman’s representatives, which proved influential in the deal. 

The Rangers Review understands that Wilson wanted to ensure Rangers benefitted, both instantly and in the future if Tillman didn’t join permanently. This was ensured through the addition of a cancellation fee and sell-on clause. 

READ MORE: Rangers set for huge Malik Tillman transfer windfall as Bayern cancel clause 

There’s a general consensus that the arrangement has concluded to be beneficial for all parties. Tillman developed within a positive environment, Bayern will sell for a higher price due to his successful loan spell and Rangers will net around £2 million for aiding his evolution.

Many have expressed their surprise that the club could net a multi-million windfall despite Tillman never being contracted at Ibrox on a permanent deal. 

Whilst it’s a relatively uncommon arrangement in Scotland, there are similar examples from Wilson's previous spell with Southampton.

Wilson joined the South Coast side as Director of Football Operations in March 2015 after departing Huddersfield Town. 

During the 2014/15 season, Toby Alderweireld enjoyed a hugely successful loan spell from Atletico Madrid. 

Southampton entered into that loan deal with a buy-option to sign Alderweireld permanently for £6.8m, but crucially the agreement contained a clause that permitted Atletico to cancel that agreement for a £1.5m fee. 

While Wilson wasn’t at Southampton when the initial deal was agreed, he was in place when Tottenham had an £11.5m bid accepted for Alderweireld in the summer of 2015. 

Southampton wanted to enforce their purchase clause at £6.8m but the player ended up joining Tottenham and it’s understood that Atletico had to compensate the Saints for cancelling their agreement.

There are differences between the two transfers as Alderweireld was a senior player who hadn’t worked out but Atletico wanted to retain a future option, whereas Tillman was a young talent and Bayern felt his development could be accelerated by a loan move to Rangers. 

However, there are similarities between the cancellation clauses and, ultimately, it allowed Rangers to benefit financially despite suggestions that the USA international was hesitant to return permanently to Ibrox this summer.