OVERVIEW OF THE ESSENTIAL TERMS OF PROFESSIONAL FOOTBALL PLAYER CONTRACT.

Introduction

According to the international governing body of football association, FIFA, from January to September 2018 there were 15,049 international transfers of male players with fees totalling US$7.1 billion dollars, and 577 international transfers of female players for US$493,235. That is an indication of the lucrative nature of transfer of players from one club to another with a transfer window. Regardless of this incredibly remunerative nature of transfer of players which is executed in a written form amongst clubs and players, the contracts must be carefully drafted and meticulously scrutinized by their solicitors in ensuring that they conform with accepted standards properly called ‘Rules of the Game’ and contains all relevant clauses prior to execution by the parties. Also, beside the crazy clauses and ludicrous demands, sometimes included in these agreements, footballers’ contracts are often incredibly complex and are required to contain some certain minimum essential requirements in compliance with relevant laws. These minimum requirements are guidelines which aim to cover the most important and essential rights and duties of both parties to the contract (professional players and clubs). Parties are required to finalise on these requirements in the process of negotiation so as to have standard professional football contract. This article takes a look at these minimum requirements, the applicable laws and how they are incorporated into footballers’ contract to ensure that it is a valid standard contract which complies with international best practices.

LAWS GOVERNING CONTRACT OF PROFESSIONAL PLAYERS

The transfers of players from one club to another, are generally governed by some rules that parties to a Footballer Contract must take into account in the process of negotiating and finalising the contract. Some of these legal frameworks include the following:

  • National/Confederation Legislations

 

At the regional level, transfers of players are governed by the Confederations’ Rules and Regulations. The transfers are also mainly affected by National Association Legislation and negotiations and the contract between the parties must conform to the provisions of these rules. The world football governing body has 211 affiliated associations which make up the varying Confederations with the AFA in Asia, CAF in Africa, the Football Confederation (CONCACAF) in North and Central America and the Caribbean, CONMEBOL in South America, UEFA in Europe and the OFC in Oceania.

 

  • Football Regulations

 

The world’s football governing body FIFA, also acts as the legislator in all kinds of football activities. Through its Congress, the FIFA Council or the Secretary General, passes various types of legal documents that have an impact on the day-to-day activities of football all over the world, these legal documents consist of various sets of rules and regulations, including but not limited to the FIFA Statutes, the FIFA Governance Regulations, the FIFA Regulations on the Status and Transfer of Players, the FIFA Code of Ethics, the FIFA Disciplinary Code, the FIFA Regulations on Working with Intermediaries, etc. Therefore, transfers of players must also comply with these rules.

  • Collective Bargaining Agreements (CBA)

 

Where a CBA is applicable to a transfer, the individual agreement between the player and the club must conform to the bargained agreement which usually regulates the wages, benefits, and duties of the employees and the duties and responsibilities of the employer(s) and often include rules for a dispute resolution process.

The Essentials of Standard Player Contract

A Standard Player Contract is a contract that is compliant with relevant laws including the law of the game as released by the world’s football governing body. Such contract will embody the minimum requirements as laid down by the FIFA Executive Committee and in conformity with normal contractual principles. The following clauses constitute the essential terms in a standard Footballer’s Contract.

  1. Contractual Period

The agreement between the parties to a standard Footballer Contract must define in clear terms, the commencement or the starting date as well as the ending date of the contract. For the contract to be valid and enforceable it must be ascertainable as to the day, month and year, as an employment contract of a professional player cannot inure in perpetuity. In the German case of HEINZ MULLER v. FSV MAINZ 05 (4 Sa/202/15) the Labour Court of the Federal Land of Rhineland-Palatinate held that:

“A football club is forced to enhance the efficiency of its team season-after-season by recruiting and signing new player. In the event contracts with indefinite terms were the norm, the club would not be able to regularly end a contract with a player by way of an ordinary termination”.

The above decision clearly spells out one out of many issues a club would have to grapple with, just in case it goes ahead to execute an unascertainable contract with its employee.

  1. Club’s Obligation

As any other contractual relationship will stipulate the obligation of the parties to the contract, this clause defines the Club’s obligations towards the player in a footballer contract and it usually contain the following terms;

    • Salary (regular, monthly, weekly, performance based)
    • Other financial benefits (bonuses, experience review, international appearances)
    • Other benefits (Non-financial such as car, accommodation, etc.)
    • Medical and health insurance for accident and illness as mandatory by law) and payment of salary during incapacity.
    • Pension fund/social security costs (as mandatory by law or CBA)
    • Reimbursement for expenses incurred by the player

 

  1. The Player’s obligations

A properly drafted footballer’s contract must also contain all the rights and duties of the player. In particular, as they relate to matches, training and meetings, injuries among others, in accordance with the Club’s and superior sporting organization’s regulations and other rules. Some terms relating to the player’s duties towards the club which is covered by this clause are;

    • To play matches to the best of his ability, when selected.
    • To participate in training and match preparations according to the instructions of his superior (e.g. Head Coach).
    • To maintain a healthy lifestyle and high standard of fitness.
    • To comply with and act in accordance with club officials’ instructions (reasonable, e.g. to reside where suitable for the club).
    • To attend events of the club (sporting but also commercial ones)
    • To obey club rules (including where application, Club Disciplinary Rule, duly notify to him before signing the contract).
    • To behave in sporting, manner towards people involved in matches, training sessions, to learn and observe the laws of the game and to accept decision by match officials.
    • To abstain from participating in other football activities or potentially dangerous activities not prior approved by the club and not covered by the club’s insurance.
    • To take of the property of the club and to return it after termination of the contract.
    • To immediately notify the club in case of illness or accident and to not undergo any medical treatment without prior information to the club’s doctor (except in emergencies) and to provide a medical certificate of incapacity.
    • To undergo medical examination and medical treatment upon request of the club’s doctor.
    • To comply with the terms of any association, league, player’s union and/or club’s anti-discrimination policy.

Also, terms relating to players obligation to comply with FIFA’s Statutes, Regulation, Code of Ethics and tax related issues will be covered by this clause. The agreement may also include clauses on the rights of the player to conclude a contract, or negotiate as regards a transfer with the prior consent of the club.

These obligations binding both employer and employee are contained in the Autonomous Agreement regarding Minimum Requirements for Standard Player Contracts in the Professional Football Sector which was signed in April, 2012 by UEFA, ECA, EPFL and FIFPro among others, which serves as a model for the rest of the clubs and associations across the globe, and further made provisions for the inclusion of other clauses discussed below:

  1. Image rights

Image rights issues are important topics usually included in a footballer’s contract and finalized at the stage of negotiation by parties to the contract. It is an additional income stream that is completely separate from the player’s salary and involves the payment made by the club for off-the-pitch commercial activities that is beneficial to the club, like endorsing products or sponsors associated with the club. Image rights can be a great way to earn additional money. The exploitation of the player’s image rights will be based on the agreement of the parties and included as an essential term of the contract. It is usually recommended that the individual player may exploit his rights by himself provided it is not in conflict with the clubs’ sponsor’s or partner’s while the club may exploit the player’s image rights as part of a group and/or the whole squad. Image rights relate to a player’s marketable identity or traits that uniquely identifies the player and that therefore can be commercially exploited by the player or licensed to third parties.

  1. Transfer

This key clause relates to the transfer of the player to another club either during the contractual period or after it has expired in accordance with the appropriate transfer regulations applicable. It will also state the club’s duty to promptly comply with the provisions of the relevant regulations regarding transfer to another club. 

Until the mid-90s clubs had the upper hand in contract negotiations with players and in certain parts of the world, (particularly Europe) were able to prevent players from joining another club even after their contracts had expired, however some judicial pronouncements have reversed this unfair affair. A case at hand is UNION ROYALE BELGE DES SOCIETES DE FOOTBALL ASSOCIATIO ASBL v. JEAN-MARC BOSMAN (1995) C-415/93, wherein the European Court of justice banned restrictions of foreign EU members within the national leagues and allowed professional football players in the EU to move freely to another club at the end of their term of contract with their present team.

The case profoundly affected the transfers of football players within EU and hence, all EU players were given the right of free transfer at the end of their contracts, so long as they were transferring from clubs within the EU Football Association. This has equally set the precedence for the rest of the football associations the world over and even FIFA have had to modify its Regulations on the Status and Transfer of Players in recognition of the legal implications of the freedom of movement for players through the introduction of Article 13 which discourages unilateral termination of contracts by clubs and players.

  1. Loan Agreement

A professional footballer may be loaned to another club on the basis of an agreement between him and the clubs concerned. The terms of the loan move constitute an express clause in the footballer’s contract and any such loan is subject to the same rules as they apply to the transfer of players, including the provisions on training compensation and the solidarity mechanism.

Typically, a ‘loan’ involves a particular player being allowed to temporarily play for a club different from the player’s parent club for a certain period of time.  The reasons for such loaning out of players to other clubs are several, the most common being that the players will gain valuable first team experience through the parent club’s ‘feeder’ clubs such as in the instance of Manchester United and Royal Antwerp respectively. Where this is the case, the parent club may choose to continue paying the loaned player’s wages in full. Another reason is when the parent club is running short on transfer funds but can still pay wages or to serve as ad-hoc cover for injuries or suspensions, in which case it will demand a fee or require the loaning club to pay part or full, the player’s wages during the loan period. 

  1. Player Discipline and Grievance

These clauses contain the club’s internal disciplinary rules on sanctions or penalties and the procedures that will be followed in giving effect to any breach of the rules of the club that would have been communicated to the player. The terms on the process to be followed by the player in appealing any disciplinary decision imposed will also be included in the clause.

However, clubs are entrusted with the task of explaining these rules and procedures to the player, the player has a right to appeal and sanction/penalty imposed and the right to be accompanied/represented by club captain or a union representative during such appeal.

  1. Anti-Doping

The Anti-Doping Clause covers the important requirement of compliance with all relevant anti-doping regulations of football bodies. It out rightly prohibit the use substances and obliged the player to submit to doping test upon request.

  1. Termination

The rights of the parties to terminate the agreement are embodied in the termination clause. This clause stipulates that violation of the obligations of the parties under the agreement may determine the contact including resulting into the voluntary transfer of the player to another club where the breach is from the club or suspension where the player is the breaching party.

  1. Betting and match manipulation

This clause state the player’s obligation to comply with relevant football bodies applicable rules as regards manipulation of matches. It restrain the player either alone or in connection with a third party from involving in influencing or manipulating the outcome of a match (match fixing), different competitive elements during the match such as free kicks, corner kicks, penalty kicks, cautions or the sending off of a player, The restrictions also include prohibition against the manipulation of the result of a match, or its specific elements, which is subject to betting, regardless of whether the it is by the player himself or an agent have placed such bets.

  1. Final Provisions

These are other essential clauses contained in a footballer contract and in no particular order, they cover the following issues;

    • Applicable Law
    • Dispute Resolution
    • Confidentiality
    • Severability
    • Definitions and Interpretation
    • Miscellaneous
    • Amendments
    • Schedules (If applicable)
    • Annexes

Conclusion

When a player moves from one club to another, their old contract is terminated and they negotiate a new one with the club they are moving to. It is when these contracts stipulate and convey the rights and obligations of the parties and peculiar attention placed on certain minimum requirements that it will be classified as a standard professional footballer contract. This article has revealed and dealt with the importance of these essential requirements with particular emphasis on their roles in the contract. It further identifies the relevant rules governing the contracts of footballers and their transfers form one club to another. From the analysis above, it is clear that solicitors to the club and the player plays a pivotal role in ensuring that the agreement contains the essential terms that are in tandem relevant laws and aptly capturing the intention of the parties as agreed between them during negotiation.

Written by: Lukman Bolaji

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OVERVIEW OF THE ESSENTIAL TERMS OF PROFESSIONAL FOOTBALL PLAYER CONTRACT. was last modified: July 10th, 2020 by Omaplex