4. Maintenance of contractual stability between professionals and clubs Flashcards
- RESPECT OF CONTRACT:
How is a contract terminated?
A contract between a professional and a club may only be terminated upon expiry of the term of the contract or by mutual agreement.
- TERMINATING A CONTRACT WITH JUST CAUSE:
How a contract can be terminated by just cause.
A contract may be terminated by either party without consequences of any kind (either payment of compensation or imposition of sporting sanctions) where there is just cause.
Any abusive conduct of a party aiming at forcing the counterparty to terminate or change the terms of the contract shall entitle the counterparty (a player or a club) to terminate the contract with just cause.
- TERMINATING A CONTRACT:
Is outstanding salaries just cause?
Yes.
When a club unlawfully fails to pay a player at least two monthly salaries on their due dates, the player will be deemed to have just cause to terminate his contract.
This is ok to do as long the player has put the debtor club in default in writing and has granted a deadline of at least 15 days for the debtor club to fully comply with its financial obligation(s).
- TERMINATING A CONTRACT:
What does it mean to terminate a contract based on sporting cause?
It means that an established professional who has, in the course of the season, appeared in fewer than ten per cent of the official matches in which his club has been involved may terminate his contract prematurely on the ground of sporting just cause.
A professional may only terminate his contract on this basis in the 15 days following the last official match of the season of the club with which he is registered.
- TERMINATING A CONTRACT:
What are the consequences of terminating a contract without just cause?
In all cases, the party (club or player) in breach shall pay compensation which is calculated with due consideration for the law of the country concerned, the specificity of sport, and any other objective criteria.
These criteria shall include, in particular, the remuneration and other benefits due to the player under the existing contract and/or the new contract, the time remaining on the existing contract up to a maximum of five years, the fees and expenses paid or incurred by the former club (amortised over the term of the contract) and whether the contractual breach falls within a protected period.
- TERMINATING A CONTRACT:
How is the compensation to a player calculated when a contract is terminated?
a) In case the player did not sign any new contract following the termination of his previous contract, as a general rule, the compensation shall be equal to the residual value of the contract that was prematurely terminated.
b) In case the player signed a new contract by the time of the decision, the value of the new contract for the period corresponding to the time remaining on the prematurely terminated contract shall be deducted from the residual value of the contract that was terminated early (the “Mitigated Compensation”). Furthermore, there is the “Additional Compensation” which is the compensation a player receives when a contract is terminated early due to overdue payables (3 monthly salaries, up to a maximum of 6 months depending on the circumstances.
c) Collective bargaining agreements validly negotiated by employers and employees representatives at domestic levels in accordance with national law may deviate from the principles stipulated in the points above.
- TERMINATING A CONTRACT:
What is the process when a player is required to pay compensation?
Entitlement to compensation cannot be assigned to a third party. If a player is required to pay compensation, the player and his new club shall be jointly and severally liable for its payment. The amount may be stipulated in the contract or agreed between the parties.
- TERMINATING A CONTRACT:
What are the sporting sanctions towards players when a contract is breached?
In addition to the obligation to pay compensation, sporting sanctions can be imposed on any player found to be in breach of contract during the protected period.
This sanction shall be a 4 month restriction on playing in official matches but if there are aggravating circumstances the restriction can be up to 6 months which is the most for any player.
The sporting sanctions shall remain suspended in the period between the last official match of the season and the first official match of the next season, in both cases including national cups and international championships for clubs.
Unilateral breach without just cause, including sporting, after the protected period shall not result in sporting sanctions. Disciplinary measures may be imposed outside the protected period for failure to give notice of termination within 15 days of the last official match of the season of the club with which the player is registered. The protected period starts again when, while renewing the contract, the duration of the previous contract is extended.
- TERMINATING A CONTRACT:
Can sporting sanctions be imposed on a club found to be in breach of a contract?
Yes, in fact, a club can even be an object to sporting sanctions for inducing a breach of contract by a professional.
It shall be presumed, unless established to the contrary, that any club signing a professional who has terminated his contract without just cause has induced that professional to commit a breach by offering the player a new contract when signing.
The consequences for this is that the club is banned from registering any new players, either nationally or internationally, for two entire and consecutive registration periods. The club shall be able to register new players only as of the next registration period following the complete serving of the relevant sporting sanction.
Basically, any person subject to the FIFA Statues and Regulations who acts in a manner designed to induce a breach of contract between a professional and a club in order to facilitate the transfer of the player shall be sanctioned.
- SPECIAL PROVISIONS RELATING TO CONTRACTS BETWEEN PROFESSIONALS AND CLUBS:
Are there any special provisions relating to contracts between professionals and clubs?
Yes, for example:
*The minimum length of a contract shall be from its effective date until the end of the season, while the maximum length of a contract shall be 5 years.
*Contracts of any other length shall be only be permitted if consistent with national laws.
*Players under the age of 18 may not sign a professional contract for a term longer than 3 years.
*A club intending to conclude a contract with a professional must inform the players current club in writing before entering into any negotiations.
*A professional shall only be free to conclude a contract with another club if his contract with his present club has expired or is due to expire within 6 months.
- Furthermore, any employment contract that is concluded following the provision of football agent services shall specify the football agents name, their client, their FIFA licence number and their signature in accordance with the FIFA Football Agent Regulations.
- SPECIAL PROVISIONS RELATING TO CONTRACTS BETWEEN PROFESSIONALS AND CLUBS:
What are the rules for female players and maternity leave?
Female players are entitled to maternity leave during the term of their contract, paid at the equivalent of two thirds of their contracted salary.
If the national laws provide more beneficial conditions in the country of their clubs domicile these beneficial conditions shall prevail.
