III Jornada: Seminario de Derecho del Fútbol Nacional e Internacional. Universidad Rey Juan Carlos
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1 III Jornada: Seminario de Derecho del Fútbol Nacional e Internacional Universidad Rey Juan Carlos Madrid, 22 de febrero de 2014
2 FIFA Regulations on the Status and Transfer of Players Omar Ongaro, Head of Players Status and Governance Seminario de Derecho del Fútbol Nacional e Internacional 2
3 Overview 1. Activity of the Players Status and Governance Department Main tasks Statistics 2. The main principles of the Regulations on the Status and Transfer of Players Short history of the current Regulations on the Status and Transfer of Players Principles of the Regulations Dispute resolution system Conclusions Seminario de Derecho del Fútbol Nacional e Internacional 3
4 1. Activity of the Players Status and Governance Department Seminario de Derecho del Fútbol Nacional e Internacional 4
5 Players Status and Governance Department Main tasks: Investigation of contractual litigations Procedures pertaining to international clearance provisional registration of players - Preparation of the decision-making process for the various deciding authorities in accordance with the relevant regulations - Interpretation of contracts related to players employment and transfers; interpretation of representation contracts between players/clubs and agents - Editing of player status judgements/decisions as well as answers or petitions to the Court of Arbitration for Sport (CAS) Seminario de Derecho del Fútbol Nacional e Internacional 5
6 Players Status and Governance Department Procedures relating to the release of players to association teams international match calendar Eligibility of players to play for representative teams, in particular, requests for change of association Procedures relating to the protection of minor players sub-committee appointed by the Players Status Committee procedure carried out through TMS Issues pertaining to players agents examinations for prospective players agents Administrative control and supervision of players agent data Seminario de Derecho del Fútbol Nacional e Internacional 6
7 Players Status and Governance Department Legal service provider for issues in connection with the transfer matching system (TMS) Provide legal advice and guidance to the various stakeholders of the football family within the abovedescribed fields Support of the development and the revision work of the various regulations back office for possible working groups provide input based on experience on the grounds Seminario de Derecho del Fútbol Nacional e Internacional 7
8 Players Status and Governance Department Some figures: approximately 1800 cases/year referred to FIFA s decision making bodies, excluding requests for minors (in 2012: 1787; minors: 1882; Total: 3669 matters) every member of the department deals with around 60 cases at a time monthly Dispute Resolution Chamber meetings, 20 to 30 cases dealt with each time approximately 6 to 8 meetings of the DRC judges per year, 30 to 40 cases dealt with each time two plenary meetings of the Players Status Committee per year, approximately 20 cases dealt with each meeting approximately 8 to 10 meetings of the single judge per year, 20 to 30 cases dealt with each time in 2012: approximately 2500 decisions passed, 1619 of which pertaining to minors approximately 450 information requests answered in writing per year Seminario de Derecho del Fútbol Nacional e Internacional 8
9 2. The main principles of the Regulations on the Status and Transfer of Players Seminario de Derecho del Fútbol Nacional e Internacional 9
10 Overview: Short history of the current Regulations on the Status and Transfer of Players Principles of the Regulations Scope Status of players Maintenance of contractual stability Training compensation and the solidarity mechanism Protection of minors Dispute resolution system Conclusions Seminario de Derecho del Fútbol Nacional e Internacional 10
11 History: Bosman ruling on 15 December 1995 by the European Court of Justice (ECJ) Statement of objections issued by the European Commission on 14 December 1998 In March 2001: Agreement found between FIFA/UEFA and the European Commission on the principles of the future transfer rules 1 September 2001: Entry into force of totally revised Regulations on the Status and Transfer of Players 1 July 2005: Revision of Regulations based on experience gained and jurisprudence In 2008, 2009, 2010 and 2012 several (minor) amendments Current edition in force since 1 December 2012 Seminario de Derecho del Fútbol Nacional e Internacional 11
12 The principles incorporated in the Regulations (as of the edition that came into force on 1 September 2001) Contractual stability Protection of minors Training of young players Solidarity in the football world Dispute resolution system Seminario de Derecho del Fútbol Nacional e Internacional 12
13 Scope: Global and binding rules concerning the status of players and their eligibility to participate in organised football the transfer of players between clubs belonging to different associations (international transfers) Transfers of players between clubs belonging to same association governed by regulations issued by relevant association; however some provisions are binding at national level some principles must be respected at national level Seminario de Derecho del Fútbol Nacional e Internacional 13
14 Status of Players: Distinction between amateur and professional players Professional player: - written contract with a club - is paid more for his footballing activity than the expenses he effectively incurs All other players are considered to be amateurs Seminario de Derecho del Fútbol Nacional e Internacional 14
15 Maintenance of contractual stability: Concerns only professional players When is it possible to terminate a contract? upon expiry prior to ordinary expiration, by mutual agreement prior to ordinary expiration, with just cause prior to ordinary expiration, with sporting just cause Seminario de Derecho del Fútbol Nacional e Internacional 15
16 What is a just cause? only a breach which is of a certain severity in principle, the breach is considered to be of a certain severity when there are objective criteria which do not reasonably permit to expect a continuation of the employment relationship between the parties such as serious breach of confidence Seminario de Derecho del Fútbol Nacional e Internacional 16
17 Termination of contract without just cause consequences In all cases of termination without just cause - payment of compensation by the party in breach - compensation to be calculated on the basis of criteria established in art. 17 par. 1 of the Regulations In case of unjustified termination by the player - new club automatically jointly and severally liable for payment of compensation due No obligation for player to return to his former club! Seminario de Derecho del Fútbol Nacional e Internacional 17
18 In case of termination of contract without just cause during the protected period What is the protected period? - Sporting sanctions to be imposed on the party responsible for the breach - Player: a four-month restriction on playing in official matches (six months in case of aggravating circumstances) - Club: ban from registering any new players, nationally or internationally for two entire and consecutive registration periods Seminario de Derecho del Fútbol Nacional e Internacional 18
19 Inducement by a club to a breach of contract by a player A club inducing a player to breach his contract during the protected period shall also suffer sporting sanctions It shall be presumed, unless established to the contrary, that any club signing a professional player who has terminated his contract without just cause had induced that player to commit a breach. - It is thus for the new club to prove the contrary! Seminario de Derecho del Fútbol Nacional e Internacional 19
20 Training compensation: Concept: Clubs investing in the training and education of young players should be rewarded in case one of their players succeeds in becoming a professional International dimension required: training club and new club need to belong to different associations Seminario de Derecho del Fútbol Nacional e Internacional 20
21 The obligation to pay training compensation arises whether the transfer takes place during or at the end of the player s contract when a player is registered for the first time as a professional when a professional is transferred between clubs of two different associations before the end of the season of the player s 23 birthday Seminario de Derecho del Fútbol Nacional e Internacional 21
22 Principles Player s training and education takes place between the ages of 12 and 23 Training compensation payable, as a general rule, up to the age of 23 for training incurred up to the age of 21 - unless it is evident that a player has already terminated his training period before the age of 21 Seasons of respective birthday to be taken into account (not actual birthday) Seminario de Derecho del Fútbol Nacional e Internacional 22
23 No training compensation is due if if the former club terminates the player s contract without just cause if the player is transferred to a category 4 club if a professional reacquires amateur status Seminario de Derecho del Fútbol Nacional e Internacional 23
24 Training costs Associations are instructed to divide their clubs into a maximum of four categories Yearly training costs are established on a confederation basis per specific category Seminario de Derecho del Fútbol Nacional e Internacional 24
25 Confederation Category I Category II Category III Category IV AFC USD 40,000 USD 10,000 USD 2,000 CAF USD 30,000 USD 10,000 USD 2,000 CONCACAF USD 40,000 USD 10,000 USD 2,000 CONMEBOL USD 50,000 USD 30,000 USD 10,000 USD 2,000 OFC USD 30,000 USD 10,000 USD 2,000 UEFA EUR 90,000 EUR 60,000 EUR 30,000 EUR 10,000 Seminario de Derecho del Fútbol Nacional e Internacional 25
26 Calculation of training compensation Formula: Number of years of training starting from the season of the player s 12 th birthday until the season of his 21 st birthday multiplied by Training costs that would have been incurred by the new club if it had trained the player itself Seminario de Derecho del Fútbol Nacional e Internacional 26
27 First particularity: Training compensation for very young players: training costs for players for the seasons between their 12 th and 15 th birthdays always based on training and education costs of category 4 clubs - avoid setting training compensation for very young players at unreasonable high levels However: exception not applicable if event giving rise to the right to training compensation occurs before the end of the season of the player s 18 th birthday Seminario de Derecho del Fútbol Nacional e Internacional 27
28 Second particularity: - In the case of first registration as a professional: training compensation to be paid to every club with which the player has previously been registered and has contributed to his training - In the case of subsequent transfers of a professional: training compensation to be paid only to the player s former club for the time he was effectively trained by that club ü first registration as a professional breaks the chain Amateur Amateur Amateur Professional Professional Seminario de Derecho del Fútbol Nacional e Internacional 28
29 Third particularity: - Special provisions for the EU/EEA: for players moving from one association to another inside the EU/EEA In principle, new club required to offer a contract to the player, of at least equivalent value and at least 60 days before the expiry of his current one, if applicable. If offer made (or not needed), in case of move of the player from a lower to a higher category club, calculation to be based on average training costs of the two clubs concerned Seminario de Derecho del Fútbol Nacional e Internacional 29
30 Solidarity mechanism: Training clubs to profit from transfer of player as a professional during his entire career Structural differences to training compensation: Possibility of claim not linked to a specific age limit Training clubs to profit from every transfer as a professional Solidarity contribution only due if player moves during course of a contract Seminario de Derecho del Fútbol Nacional e Internacional 30
31 Payment procedure Solidarity contribution: 5% of any compensation paid to the player s former club (excluding training compensation) Amount to be deducted from the total amount of this compensation - New club to pay 100% in accordance with agreement with former club - Only distribution of money affected by solidarity mechanism: 95% of agreed compensation goes to former club, 5% distributed to training club(s) New club responsible for payment of solidarity contribution Seminario de Derecho del Fútbol Nacional e Internacional 31
32 Conditions for entitlement Professional needs to be transferred before the expiry of his contract Transfer needs to be between clubs belonging to different associations Entitled to solidarity contribution are all clubs involved in the training and education of the player between the seasons of his 12 and 23 birthday - Seasons of respective birthday to be taken into account (not actual birthday) Contribution to be shared between the clubs entitled to it, reflecting the number of seasons he was registered with relevant clubs, following a specific breakdown provided for by the Regulations - Seasons between the player s 12 and 15 birthday: 5% of the contribution - Seasons between the player s 16 and 23 birthday: 10% of the Seminario de Derecho del Fútbol Nacional e Internacional 32
33 Scheme of the solidarity mechanism Distribution of 5% to training clubs as per breakdown in Regulations Training club A Swiss Training club B Swiss Professional club C French Professional club D English Transfer of the professional player Payment of 95% to former club Seminario de Derecho del Fútbol Nacional e Internacional 33
34 Protection of minors: General rule: International transfer of players younger than 18 are not permitted First registration for a club of a player younger than 18 at an association of the territory of which he is not a national not permitted Three exceptions: General exception: parents moving to a new country for reasons not linked to football EU/EEA exception: international transfer within the EU/EEA area and player aged between 16 and 18, subject to club fulfilling certain minimum conditions Cross-border exception: player s home within 50km from border club domiciled within 50km from border total of maximum 100km distance, subject to approval of both associations and player continuing to live at home Seminario de Derecho del Fútbol Nacional e Internacional 34
35 Sub-Committee appointed by Players Status Committee Decision of FIFA Congress in 2009 In order to secure due respect of exceptions, all applications for international transfers or first registrations of non-national minor players to be submitted for approval to the Sub-Committee prior to initiation of procedure regarding international transfer or registration All applications are managed through the Transfer Matching System (TMS) - Only member association concerned can submit relevant application System only works if principle and exceptions applied in a strict and consistent manner Confirmed by Court of Arbitration for Sport (CAS) Seminario de Derecho del Fútbol Nacional e Internacional 35
36 Dispute Resolution System FIFA Dispute Resolution Chamber Players Status Committee Disciplinary Committee enforcement appeal appeal appeal External Court of Arbitration for Sport Seminario de Derecho del Fútbol Nacional e Internacional 36
37 Conclusions Regulations on the Status and Transfer of Players only applicable at international level A player is a professional only if he fulfils the conditions of art. 2 of the Regulations The unjustified breach of a contract between a professional player and a club may lead to the payment of compensation and, possibly, sporting sanctions however, the player may never be forced to return to his previous club Training compensation and the solidarity mechanism are of particular interest and benefit for clubs investing in the training and education of young players The protection of minor players requires a strict application of the applicable provisions FIFA (and the Court of Arbitration for Sport) have created a dispute resolution system which is efficient within the scope of international transfers of players Seminario de Derecho del Fútbol Nacional e Internacional 37
38 Thank you for your attention! Seminario de Derecho del Fútbol Nacional e Internacional 38
39 Questions and Answers Seminario de Derecho del Fútbol Nacional e Internacional 39
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