What is the purpose of obtaining a letter of clearance before licensing a player?

The purpose of obtaining a letter of clearance before licensing a player primarily revolves around ensuring compliance with FIBA regulations. This document is crucial as it serves as proof that a player has fulfilled all necessary obligations to their previous club and is free to sign with a new team. This process helps to maintain the integrity of the sport, protecting players and clubs from potential disputes over contracts and playing rights. By adhering to FIBA regulations regarding player transfers, agencies ensure that the moves are legitimate and that clubs cannot hold onto players indefinitely or without just cause. Ensuring compliance helps to create a fair playing field for all involved and safeguards against any administrative or legal complications that may arise from an improper transfer.