Football-transfer ‘upheaval’ on the way
The current football transfer window, which closes in August, will be the last conducted under the current transfer system, lawyers at Pinsent Masons say.
They note that, from 1 January, the transfer market will radically change, meaning players, clubs, and agents have less than six months to prepare for what the lawyers describe as “a major upheaval” in how the football player-trading market operates.
The changes to governing body FIFA’s Regulations on the Status and Transfer of Players (RSTP) were triggered by a high-profile court battle between FIFA and former France star Lassana Diarra.
The Court of Justice of the European Union (CJEU) found that FIFA’s transfer regulations infringed EU competition law and the right to free movement of workers, making it difficult for a player to terminate an employment contract without just cause.
Joint liability
In an analysis, the Pinsent Masons lawyers note that the new rules address the provision of joint liability for clubs signing players who are in breach of their contract – which was one of the main catalysts for the changes.
Under the previous rules, a player’s new club faced being held jointly liable if it could be proven it had induced the player to breach his contract – which, in Diarra’s case, stopped him from securing a transfer as his prospective new club faced being hit with a compensation claim for signing him.
This has been revised in the 2027 rules, with the presumption of inducement applying when players sign for a new club within 45 days of breaching their agreement with their former side, unless proven otherwise by the club.
Contract terminations
Pinsent Masons says that one of the biggest shifts in the updated RSTP is how they handle contract terminations, in a bid to discourage clubs and players from breaching their deals, and ensuring the continuity of the transfer market.
Under the new rules, any breach of contract now qualifies – not just terminating a deal between club and player.
The lawyers note that, previously, there were no specific requirements for liquidated damages – pre-determined sums for contract breaches – in football contracts.
The 2027 rules change this, allowing for advance agreement of compensation if a breach of contract takes place.
Compensation
“Players and clubs will now, under the rules, be entitled to a specified amount of compensation from a breached contract – plus any financial impact caused by the breach itself, such as lost transfer fees or replacement costs,” Pinsent Masons says.
“Clubs who put pressure on players – such as excluding them from training or playing for not signing a new contract – will face paying up to six months’ salary in compensation to the player,” the firm states.
It adds, however, that the converse is also true, and contract rebels who go on strike at a club to force a move can face similar sanction.
“The new rules mean that, unless a contract expires naturally or by mutual agreement of both club and player, any attempt to force a termination or breach the contract will now come with significant penalties for the party responsible,” the lawyers state.
Transfer-fee cut
Pinsent Masons also highlights another notable change affecting players on smaller contracts of less than €150,000 a year, who will now have a statutory requirement to receive a guaranteed cut of the transfer fee.
Other changes include a provision to allow under-18s to sign longer contracts in some circumstances.
“It will take a transfer window or two for the full impact of the changes to be felt, not least because the January window – particularly among the upper echelons of domestic football in Europe – tends to be less dynamic than the longer, higher-profile summer window,” the firm says.
It concludes that the new contractual protections and change of rules on under-age players will give clubs greater certainty on how they can keep hold of – or cash in on – younger talent, while the guaranteed minimum payment players are due from deals may have a knock-on effect on budgeting for teams.