Hereford won't receive a penny in compensation after they lost their captain Jimmy Oates to League Two Exeter City.
Oates had been on trail at Exeter for three weeks and his signing announced on Tuesday.
Bulls boss Pete Beadle has since confirmed that there will be no compensation for the defender as he wasn't on a contract.
When asked if there would be any compensation, Beadle said: "No there won't be. This is where we have a bit of a loophole. Jimmy's over 24, he was offered a new contract for this season, but being over 24 he doesn't have to sign it and he can leave as he wants and when he wants because he hasn't signed it.
"With Exeter coming in for him in the summer before pre-season, then obviously the trial was set up before he'd signed his contract. Once he knew the trial was on, there was no way he was going to sign the contract.
"You can't blame him for that, but it's one of those things that we have to get on with. Had he been on a contract or had we signed him last year and done a two-year contract then we would've been entitled to compensation I think."
Beadle also said that he was said to see him go but praised Oates for his leadership while captaining the side last season.
"Hindsight is a wonderful thing in all walks of life," Beadle added.
"He's our captain and I'm really sad to see him go, but also extremely delighted for him because he's a superb person on and off the pitch.
"He's been a great leader this past year too, so he's certainly going to leave a hole and a big hole to fill. Keiran [Thomas] is doing a great job at the minute so we're pleased, but he's still got a bit to do yet."
Meanwhile Beadle hasn't given much thought to who will wear the captain's armband this year.
Meanwhile Beadle hasn't given much thought to who will wear the captain's armband this year.
"I haven't even thought about that yet!" Beadle told Bulls News.
"With players going left, right and centre and injuries left, right and centre it's whoever is going to be fit come the start of the season!
"With players going left, right and centre and injuries left, right and centre it's whoever is going to be fit come the start of the season!
"We'll have to sit down and have a think about who we go with, who's going to be a regular. who's going to play every week, who's going to be inspirational for the players and lead by example?
"There's three or four candidates out there that I'm sure people would put their hand up for it straight away so we'll decide when we get closer to the time."