The rule prohibits clubs and players from assigning to a third-party any rights or participation in the compensation payable for the future transfer of a player. 18-ter, FIFA put into effect a complete ban of third-party ownership. 1464 on 22 December 2014, which added art.
18-bis alone was not enough to deter third-party influence in organized football and thus took the decision of banning all TPO transactions by issuing Circular no. However, in 2014, FIFA determined that art. With this, the provision aims at preserving contractual stability, while protecting players and clubs freedom to freely negotiate the terms of their contractual relationships. 18-bis is mainly to protect the player-club relationship from the external interference of third-parties, often for mere financial and not sporting-related purposes. The rationale of the prohibition included in art. The FIFA Disciplinary Committee may impose disciplinary measures on clubs that do not observe the obligations set out in this article.” No club shall enter into a contract which enables the counter club/counter clubs, and vice versa or any third party to acquire the ability to influence in employment and transfer-related matters its independence, its policies or the performance of its teams.Ģ. The provision is binding at the national level and, as of 01 April 2015, reads as follows: 18-bis, which primarily aims at preventing clubs from entering into agreements that grant third parties (or other clubs) the possibility to “influence in employment and transfer-related matters” and to consequently, influence the independence of a club, its policies or the performance of its teams. Until then, FIFA had only introduced art. Until May 2015, the FIFA Regulations did not prohibit TPO practices. It is therefore essentially an investment (whether financial or not) made by a party other than the club holding the player’s registration, or any previous club where the player was registered, into the transfer value of a player, which is eventually monetized the moment the player is transferred to a future club.
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Third-party ownership (“TPO”) refers to the circumstances in which a third-party invests in the economic rights of a professional football player, potentially in order to receive a share of the value of any future transfer of that player.
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mainly the European 2019 summer registration period), a relatively small number (or at least not “high-profile”) of transactions were structured while contemplating the assignment of economic rights to players, although precise data are not available since there is no obligation for clubs or players to declare such assignments via FIFA Transfer Matching System (“FIFA TMS”).Ĭonversely, even those market operators who are aware of the provision have posed us a number of different questions, which might be indicative of the lack of information or clarity still spread in the market on the possible use of the mechanism, another potential reason for the apparent still relatively low recourse to it.Ĭonsidering the above, and while the mid-season transfer window is coming closer, this article will briefly outline why such an apparently minor amendment has important consequences on contractual negotiations in the football market, answering some of the main questions we received from operators while structuring their business and providing some suggestions on how to make the best of such newly (re)introduced legal mechanism. However, the author believes that at least in the first transfer window which followed the entry into force of the amendment (i.e. Such a small amendment is expected to have significant consequences on the football transfer market since it essentially reintroduces the possibility for players to hold a share of their own economic rights, a valuable tool in the hands of agents and clubs when properly used. 18-ter of the FIFA Regulations is the provision by means of which FIFA put into effect² a complete ban of third-party ownership. 18-ter of the FIFA RSTP, excluding “players” from it.Īrt. On, FIFA published its 2019 Edition of the “Regulations on the Status and Transfer of Players” (“the FIFA Regulations” or “FIFA RSTP”) which, having entered into force on 1 June 2019¹, amended the definition of ‘third-party’ in relation to art.
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