FIFA will introduce new contract termination rules after Julian Alvarez’s attempted Atletico Madrid exit exposed concerns over excessive clauses.
The governing body will amend Article 17 of its Regulations on the Status and Transfer of Players from January, changing how compensation is determined when contracts are terminated early.
Under the new rules, termination fees agreed between players and clubs must be reasonable and proportionate to the circumstances of the contract.
The changes are designed to prevent either party from setting an excessive figure that effectively blocks a player from leaving.
The move follows several transfer disputes involving high termination fees, including Alvarez’s situation at Atletico Madrid this summer.
FIFA also hopes the changes will reduce legal disputes between players and clubs and make compensation decisions more transparent and predictable.
Where a contract contains a termination clause, that agreed amount will generally determine the compensation due unless it is deemed clearly excessive or unfair.
If no such clause exists, several factors will be considered, including the remaining value of the contract, outstanding wages, the player’s value to the club, potential lost transfer income and the cost of finding a replacement.
The reforms follow wider scrutiny of FIFA’s contract rules after the long-running Lassana Diarra case and have received backing from player representatives.
Photo: REUTERS/Violeta Santos Moura
