Don't see how its ridiculous, its not as if he has to turn up for training or have any involvement with NUFC. He just has to go out and find a new club and once a tribunal sorts out compensation he can play poorly for them.
He's an out of contract worker who cannot work for someone else unless they pay a fee. He is neither earning, nor capable of earning elsewhere. He's basically forced to re-sign for us, on a no doubt ridiculously low ball contract.
Spain abolished this kind of compo because it infringed on the footballer's right to practice his profession.
I'm all for rewarding clubs that develop players, but this seems to me an excessive restraint that hurts the footballer.
Obviously not going to happen in this case but it would be unfair if you spent ten years developing a player and then he just let his contract wind down and a big club comes in and the smaller club gets nothing