Professional Football Contracts: Key Clauses
Transfers of professional football players, whether at the national or the international levels, make sporting news headlines whenever they take place, not least because of the eye-watering sums often involved.
Last summer’s football transfer window was no exception, and the transfer, at the last minute, on 30 August 2024, of the Uruguayan International defensive midfielder, Manuel Ugarte, from Paris-Saint Germain to Manchester United for a total fee of £50.5 million (around Sw. Frs. 56.7 million) is a typical example.
Behind every such transfer is the corresponding employment contract and one of the particular fields of our sports law practice is the negotiation and drafting of professional football contracts, and also, it may be added, acting in cases of disputes.
There are a number of key clauses in such contracts to take into account including:
The duration of the contract – in Ugarte’s case, the contract term was 5 years, with an option for a further year, which appears to be the standard term, depending upon the age and skill of the player.
The salary and bonuses and how and in what circumstances they will be paid. Such bonuses may be paid on a team and/or individual basis, for example, respectively, on wining matches and qualifying for a particular tournament and scoring goals and, in the case of a keeper, keeping a clean sheet.
Signing on fees and loyalty fees for remaining with a particular club for a specified period of time may also be involved. For example, Kylian Mbappe received a €100 million (around Sw. Frs. 93.7 million) signing on fee, and also a substantial loyalty bonus to remain at Paris Saint-Germain.
So-called ‘release clauses’ also feature in many contracts. These clauses enable players to transfer to other clubs if an agreed specified fee is paid.
Likewise, so-called ‘buy-out clauses’ are often included in continental football players’ contracts, whereby players may leave their clubs as an alternative to terminating their contracts.
Also, clauses covering ‘loan and recall’ arrangements of players are common.
A particular feature of players’ contracts in the modern age are intellectual property law clauses covering the use of players’ images, for club marketing and public relations purposes, and also related sponsorship club arrangements, for example, wearing the club’s sponsors’ kits. Generally speaking, players may have their own sponsored boots and goal keepers their own sponsored gloves deals.
Other players’ clauses include personal fitness clauses, performance clauses, and good conduct clauses, the latter entitling clubs to terminate players‘ contracts in cases of breaches of them.
As far as the clubs’ obligations are concerned, players may expect their clubs to provide medical examinations for them, insurance coverage for injuries and suitable training facilities Also to provide set periods of holiday leave and to release players for international duties, as and when required.
As mentioned, we provide advice and professional services on all these, as well as other aspects of football players’ contracts of employment, including resolution of disputes through mediation, arbitration and, if necessary, the courts.
Further information is available from Dr Lucien Valloni at ‘valloni@valloni.ch’