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Football-legal
30
Jun
2019
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Player/Coach Contract
Article
International
Football Legal # 11

Ambiguous Transfer Agreements – Using Buy-Back Clauses to Circumvent Loan Limit


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Under certain circumstances, clubs attempt to structure a permanent transfer as a loan, usually to avoid paying the sell-on fee stipulated in the transfer agreement. It is also not uncommon for clubs to structure a loan as a definitive transfer with the aim of circumventing certain contractual or regulatory obligations.

The transfer of a football player, broadly speaking, can be of a definitive or of a temporary nature. The latter, commonly referred to as a loan, has become immensely popular in recent years, with some clubs currently having more than 30 players out on loan. This method is often used by clubs to retain a large number of talented young players, giving them a chance to play first team football elsewhere and subsequently selling them for a profit. However, in order to end the “commercial exploitation” and to ensure that clubs use the loan system more as a tool for “youth development”, FIFA is considering imposing a limit on the number of players a club is allowed to send on loan.[1] Once the proposed restrictions are implemented, a number of clubs could...

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Topics
  • Player/Coach Contract
  • Contractual terms
Keywords
  • Court of Arbitration for Sport (CAS)
  • FIFA Dispute Resolution Chamber (FIFA DRC)
  • FIFA Regulations
  • Player loan
  • Player transfer
  • Sell-on clause
  • FIFA RSTP
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