FIFA's New Regulations On Dealing With Minors
On April 1, 2015, FIFA’s Regulations on Working with Intermediaries became effective. The 2015 Regulations essentially de-regulated the football agent industry. For instance, the Regulations no longer required agents to be licensed, pass an exam or provide insurance. In fact, the term “agent” wasn’t even used in these Regulations; instead, the Regulations referred to agents as “intermediaries.” The Regulations made it easier for someone to become a football agent/intermediary and, not surprisingly, the number of football intermediaries greatly increased. The English FA reported that there were more intermediaries than registered players. Because of the de-regulation of the industry, many individuals became “intermediaries” who may not have otherwise qualified to become an agent under the prior regulations. Many of these new intermediaries lacked the requisite knowledge, experience or skills to effectively manage professional footballers. Some of them were further lacking in ethical acumen, which led to even more problems within the industry, including disdain from the public about the actions of football intermediaries.
However, on December 16, 2022, FIFA approved of an entirely new set of regulations, titled the FIFA Football Agent Regulations. As you can see, FIFA went back to use of the term “agents” as opposed to intermediaries. Certain portions of the 2022 Regulations became effective on January 9, 2023 while other portions become effective on October 1, 2023. While many of the 2022 Regulations depart from the 2015 Regulations, this blog will only discuss one specific area – regulations related to how agents deal with minors. This blog will be the first of many to deal with the new FIFA Agent Regulations.
The old, 2015 Regulations contained minimal regulations as related to minors. In fact, the term “minor” only appeared in the 2015 Regulations four (4) times, and in a redundant nature. The only regulations pertaining to minors contained in the 2015 Regulations were:
1. The player’s legal guardian(s) was required to sign the representation contract with the intermediary (Article 5); and
2. Players and/or clubs that engaged in the services of an intermediary when negotiating a contract and/or transfer with a minor were prohibited from making any payments to the intermediary while the player was a minor (Article 7.8).
The 2022 Regulations, on the other hand, contains an entire article dealing with minors. Article 13, titled “Representation of Minors,” was designed to advance one of FIFA’s stated objectives – to protect minors. To that end, Article 13 lists a variety of regulations that football agents must follow. Note that Article 13 is one of the provisions that becomes effective on October 1, 2023.
Article 13.1 provides that an “Approach (and/or any subsequent execution of a Representation Agreement) to a minor or their legal guardian between” may only be made no more than 6 (six) months before the minor reaches the age where they may sign their first professional contract in the territory where they will be employed. In addition, this “Approach” may only be made once prior written consent has been obtained from the minor’s legal guardian.
Before we can decipher what this provision means in practical terms, we need to figure out what some of these terms actually mean. FIFA defines the term “Approach” as “(i) any physical, in person contact or contact via any means of electronic communication with a Client; (ii) any direct or indirect contact with another person or organization linked to a Client, such as a family member or a friend; or (iii) any action when a Football Agent uses or directs another person or organization to contact a Client on their behalf in the manner described in (i) or (ii) above.”
So, basically, an “Approach” is any form of contact with a client or someone connected to a client – whether in person, via electronic communication (think of email or messaging through Instagram or Twitter) or otherwise (when an agent uses another person to contact the client). This seems simple enough.
Now that we know what an “Approach” is, the next question is when does a minor reach the age where they may sign their first professional contract? This depends on where the minor intends to be employed. As FIFA instructs, the date is dependent on the territory where the minor will be employed.
If the minor intends on being employed in the United Kingdom, Article 13.1 is fairly straightforward. The English FA’s “Rules of the Association” - specifically, provision C11 - provides that “Players must be aged 18 or over in order to enter into a Playing Contract, save that a Player aged 17 may enter into a Playing Contract where they are not in Full-Time Education.” So, in the UK, it is possible for a 17-year-old to enter into a Playing Contract. An agent can, under the new FIFA Regulations, approach that 17-year old when he is 16 ½ years old.
As an aside, Article 13.1 seems to be modeled, at least in part, on the English FA’s Regulations on Working with Intermediaries. Those Regulations currently provide that an Intermediary cannot make an approach to a Player to enter into a Representation Contract until January 1 of the year of the Player’s 16th birthday, provided they obtain written consent of the Player’s parent or guardian.
But, what if the country where the minor intends to be employed does not have a provision comparable to the English FA’s C11? Take the United States, for example. The United States Soccer Federation does not have any regulation clarifying when a minor can sign their first professional contract. So, what age do we use when interpreting Article 13.1 for a minor who intends to play in the USA? Below are two interpretations of Article 13.1 based on FIFA’s plain language. We believe the second interpretation is more reasonable and consistent with FIFA’s other regulations, as we explain below.
Interpretation 1 - Based on the Age of 18:
Generally, an individual must be the age of majority – 18 – to form and agree to an enforceable contract in the United States. But, there’s a caveat to this general statement – and here it is: a minor under the age of 18 can sign a contract, but that contract is “voidable” by the minor (with a few exceptions). What this means is that a minor can sign a contract, but he has the option to declare the contract void if he chooses to do so.
So, let’s say that again and make that clear without digging too deep into contract law. A 16-year-old can sign a professional soccer contract, but that contract can be voided by him if he chooses to do so. With that in mind, we do not believe that 18 is the age that we need to focus on when interpreting Article 13.1 because a 16-year-old can sign a contract.
Another reason why using the age of 18 is inappropriate is because it conflicts with other FIFA Regulations currently in effect. Using the age of 18 would prevent an agent from approaching a minor or a minor’s legal guardian or having them sign an agent contract until the minor is 17 ½ years old. However, Article 19.2 of the FIFA Regulations on the Status and Transfer of Players (regulations that are entirely separate from the FIFA Agent Regulations) allows a player between the ages of 16 and 18 to complete an international transfer if the transfer takes place within the territory of the European Union. By example, Article 19.2 would allow an American football player who is 16 years old to sign a professional contract in country that is part of the European Union if they hold a European Union passport – just as 16-year-old Christian Pulisic did when he signed with Borussia Dortmund in February of 2015. But, if we used the age of 18 as the starting point, Article 13.1 of the 2022 FIFA Agent Regulations prevents that same 16-year-old from signing a representation agreement with an agent who might assist him with that move. Using the age of 18 would not further FIFA’s stated objective of protecting minors and, in fact, it would be to the minor’s detriment.
Interpretation 2 – Based on the Age of 14:
According to the U.S. Department of Labor, generally speaking, the Fair Labor Standards Act sets the minimum age for employment at 14 years old for non-agricultural jobs. Consistent with this, Major League Soccer has signed several 14-year-olds to professional contracts. Considering that someone under the age of 18 can sign a contract and a 14-year-old can work in a non-agricultural job in the US, and the ultimate fact that many 14-year-olds have already signed professional football contracts in the US, we would maintain that the relevant age to focus on for Article 13.1 is the age of 14. This would mean that an agent could approach a player when he turns 13 1/2 years old if he or she obtains the written consent of the parent or legal guardian.
Using the age of 14 as the age for Article 13.1 is consistent with general law in the US regarding the ability of minors to enter into contracts, consistent with the FLSA’s minimum age for employment, and furthers FIFA’s stated objective in protecting minors. Therefore, unless further clarification is provided by FIFA or the USSF, we intend on advising our clients that under the new FIFA Regulations, an agent may approach a player with the written consent of the player’s parent or guardian when they are 13 1/2 years old.
Other provisions of Article 13 are less problematic. Article 13.2 requires an agent to complete a course on dealing with minors and to comply with established laws regarding minors in the territory where the minor will be employed. Article 13.3 contains requirements for what the contract between the agent and minor must contain (meets certain minimum requirements; is signed only after the minor is 17 ½ years old and the agent completes the required minor course; is signed by the minor and their legal guardian).
Article 13 also contains a penalty for an agent violating the provision. Specifically, Article 13.4 provides that any violation of Article 13.1 shall be sanctioned, at a minimum, with a fine and suspension of a football agent’s license of up to two years. There are no other provisions in the new FIFA Regulations with a two-year suspension of an agent’s license.
Article 14.9 discusses Service Fees that agents may charge a minor. It provides that an agent may not receive a service fee (i.e., a commission) relating to a minor unless the player is signing their first or subsequent professional contract “in accordance with the law applicable in the country or territory of the member association where the minor will be employed.” Presumably the language “in accordance with the law applicable in the country or territory of the member association where the minor will be employed” means that the minor cannot sign a contract until he reaches the age of majority. But, the language is unclear and hopefully FIFA will clarify.
In all, FIFA’s 2022 Agent Regulations contain more restrictions on agents when it comes to dealing with minors. FIFA’s stated intention is to protect minors, but as noted above, the Regulations may actually do more harm than good. Only time will tell.
For more information, contact Mario Iveljic, a registered Intermediary at Mag Mile Sport and an attorney, at info@magmilesport.com.
How Much Do Soccer Players Make
I often get asked the question, “How much do soccer players make in MLS?” Some people are just curious because they have no idea what type of salaries soccer players make, especially in the USA. Some people want to compare Major League Soccer salaries to European salaries. Some people want to know because they have a family member who is considering making the jump to becoming a professional, and they don’t know if an MLS salary is worth it in the end.
As an attorney practicing law for almost 20 years now, I generally don’t like answering a question when I don’t know the exact answer. It’s easy to provide estimates on salaries, like “MLS players generally earn six figures.” But that really doesn’t answer the question in the best way. A parent might expect their son to earn at least $100,000. A parent might think their son is better than average so they should make at least $250,000 to start.
While others might be comfortable giving general estimates, I’m not. For me to answer this question, we need to know more information – especially in MLS with all of their salary rules and requirements.
So, I took a deep dive and analyzed all the numbers for Major League Soccer. Luckily, MLS releases a “Salary Guide” twice per season – once near the beginning of the season and another after the final trade window of the season. MLS recently released its second Salary Guide, and it contains salary information for all MLS players under contract as of September 2, 2022.
The player salaries are broken down into two numbers: the Current Annualized Base Salary and the Annualized Average Guaranteed Compensation (a/k/a the “Guaranteed Compensation”). The Guaranteed Compensation includes a player’s base salary and all signing and guaranteed bonuses annualized over the term of the player’s contract, including option years. We provide analysis and notable thoughts on both the Base Salary figures and the Guaranteed Compensation figures.
Before looking at the numbers, we should know the MLS rules regarding salaries. They can be tricky, so I’ll try to be to the point:
· An MLS club’s active roster is comprised of up to 30 players, all of whom are eligible for selection to the game-day squad during the regular season and players.
· Roster slots 1 through 20 is the “Senior Roster.” The Senior minimum salary is $84,000. These salaries count against the club’s Salary Budget (in 2022, the salary budget was $4,900,000).
· Roster slots 21 through 30 is the “Supplemental Roster.” These salaries do NOT count toward a club’s Salary Budget.
o All players in Slots 21 through 24 must be paid a base salary that is at least the Senior minimum salary of $84,000.
o All players in Slots 25-30 must be paid a base salary that is at least the Reserve minimum salary of $65,500.
Those are the salary basics. There are more rules that I purposely do not discuss here. It will just complicate things.
With that in mind, here are some numbers to digest:
· The average Guaranteed Compensation for all players throughout the league is about $515,000.
· The average Guaranteed Compensation for Designated Players is about $2,320,000.
· Of the top 50 Guaranteed Compensation salaries, only 4 are for non-Designated Players: Jozy Altidore, Gareth Bale, Damir Kreilach and Ricard Puig; and only 3 of them are playing in MLS as Jozy Altidore has been loaned to Puebla in Mexico.
· Of the top 25 Guaranteed Compensation salaries, only 1 is for a defender (Walker Zimmerman).
· Of the top 10 Guaranteed Compensation salaries:
o 2 are from Toronto; 2 are from LA Galaxy; and 2 are from Inter Miami.
o 7 are forwards.
o Only 1 of them is a US International – Jozy Altidore, who is not playing in MLS.
· There are 85 Designated Players and not one is a goalkeeper. Only 4 are defenders.
· The average Guaranteed Compensation for non-Designated Players is about $325,000.
· Toronto FC shows the highest total Guaranteed Compensation for all of its players at over $32M. Note that they have the highest Designated Player salary in the report – Lorenzo Insigne at $14M.
· LA Galaxy (just over $27M) and Inter Miami (just over $24M) follow behind Toronto FC in highest Guaranteed Compensation for all players.
· NY Red Bulls is showing the lowest Guaranteed Compensation for all players at just over $9.5M, followed by Philadelphia (about $10.3M), Colorado (about $10.5M) and San Jose ($10.7M).
Who pays their Designated Players the most, on average?
· Toronto (not surprising, given Insigne’s $14M contract)
· LA Galaxy (not surprising, given Chicharito’s $7M contract and Douglas Costa’s $5.8M contract)
· Chicago Fire (again, not surprising, given Shaqiri’s $8.5M guaranteed contract)
· Inter Miami (which pays Gonzalo Higuain almost $5.8M per year)
Who pays their Designated Players the least, on average?
· Minnesota United
· San Jose Earthquakes
· NY Red Bulls
· Charlotte FC
What about non-Designated Players? The teams that pay the most to their non-Designed Players, on average, are:
· LAFC (at almost $450k)
· Toronto FC (at almost $445k)
· LA Galaxy (at almost $430k)
The teams that pay the least, on average, to their non-Designated Players are:
· NY Red Bulls (about $252k)
· Portland Timbers (about $265k)
· San Jose Earthquakes (about $277k)
· Houston Dynamo (about $279k)
· Charlotte FC (about $278k)
So, getting back to the original question, “What do soccer players make in MLS?” Let’s take one final look, this time by focusing on Base Salaries.
Of the 891 total players on the list (which includes the DP’s):
· 116 players (13.0%) earn a Base Salary of the Reserve minimum of $65,500
· 238 players (26.7%) earn a Base Salary of the Senior minimum of $84,000 or less
· 290 players (32.5%) earn a Base Salary of less than $100,000
· 123 players (13.8%) earn a Base Salary between $100,000 and $199,999
· 85 players (9.5%) earn a Base Salary between $200,000 and $299,999
· 82 players (9.2%) earn a Base Salary between $300,000 and $399,999
· 59 players (6.6%) earn a Base Salary between $400,000 and $499,999
· 217 players (24.3%) earn a Base Salary between $500,000 and $999,999
· 94 players (10.5%) earn a Base Salary of more than $1,000,000.
For a league that is not even 30 years old and still growing, I think these numbers are not too shabby. The MLS minimum salaries are comparable, if not better, to what college graduates might make in 2022. On average, a young soccer player whose starting base salary is the Reserve minimum of $65,500 makes more in a starting salary than a college graduate with a degree in agriculture and natural sciences, business, communications, humanities, and social sciences (and almost more than a graduate with a math and sciences degree). If you don’t believe me, check out a recent article in Forbes which lays out projected average starting salaries for the class of 2022 (https://www.forbes.com/advisor/student-loans/average-salary-college-graduates/). On average, a young player who is lucky enough to make the Senior minimum of $84,000 will make more than college graduates in the categories I just mentioned and in addition, more than college graduates in computer sciences, engineering, and math and sciences.
Just some food for thought. Not trying to advocate for or against going to college…just comparing numbers.
On top of that, 566 players (63.5%) earn six figures, with 217 of those players (24.3%) making between $500,000 and $1M.
I know I threw a bunch of numbers at you, but in my opinion, this is the best way to answer the question “What do MLS players make?”
I’m not going to compare MLS salaries to European salaries here because I don’t think we’re comparing apples to apples. European leagues have been around for much longer than MLS. But, in another blog, I’ll analyze average salaries across Europe’s soccer leagues.
So there you have it. If you have any questions about MLS salaries, feel free to contact Mario Iveljic, an Intermediary at Mag Mile Sport and an attorney, at info@magmilesport.com
Play College Soccer Or Turn Pro?
As a soccer agent, I am frequently asked by parents whether their son or daughter should player soccer in college or try to turn professional right away. As someone who played Division I college soccer at Yale University, I can honestly say that playing soccer was easily the best part of my college experience.
But, that was also 20 or so years ago. Since then, club soccer has grown exponentially. Soccer “academies” are now found all across the country. Youth leagues – especially MLS Next and the ECNL – are the home of many talented soccer players. MLS Next Pro is giving high school players a potential alternative to college soccer. And Major League Soccer is growing every single year.
So, returning to that question – should a highly talented soccer player try to turn pro after high school or play soccer in college. This is a difficult question to answer. But here are my thoughts.
The main issue to think of is what the player’s goals are (pun intended). Some players have no aspirations of playing professional soccer. If that is the case then, yes, go to college. Get the college experience. Enjoy every minute of it and get that degree!
Also, players and their families need to be realistic about their future prospects in the game. Not everyone can become a professional soccer player. I know, because I was one of those that wasn’t quite good enough! And that’s ok!
But, to those that really want to play professional soccer, and who have the potential to play professionally, college may not be the best path. I have told players that if there is a window of professional soccer open while you are still in high school, explore it. Go on a trial or tryout. See what the clubs have to offer. You can sign on with a professional club while still maintaining your college eligibility (see my blog post on Soccer Players and the NCAA for details). In the end, that window to professional soccer can close very quickly.
Along those lines, if education is paramount, it should be noted that FIFA regulations require that clubs who sign players 16-18 years old “guarantee the player an academic and/or school and/or vocational education and/or training, in addition to his football education and/or training, which will allow the player to pursue a career other than football should he cease to play professional football.”
If you don’t share those opinions, that is perfectly fine. And, having anticipated that opinions on this topic may vary, I took a look at the rosters of our recent US Men’s National Team and U23 Men’s National Team to see to what extent those players participated in college soccer. The results weren’t terribly surprising. But here they are:
I took the following list of Senior National Team Players that will most likely be on the roster for Qatar 2022 (or who will most likely be considered for the final roster):
1. Ethan Horvath
2. Sean Johnson
3. Matt Turner
4. Zack Steffen
5. Reggie Cannon
6. Sergino Dest
7. Aaron Long
8. Mark McKenzie
9. Erik Palmer-Brown
10. Joseph Scally
11. Sam Vines
12. Deandre Yedlin
13. Walker Zimmerman
14. Kellyn Acosta
15. Tyler Adams
16. Johnny Cardoso
17. Luca De La Torre
18. Weston McKennie
19. Malik Tillman
20. Brenden Aaronson
21. Paul Arriola
22. Jesus Ferreira
23. Jordan Morris
24. Ricardo Pepi
25. Christian Pulisic
26. Giovanni Reyna
27. Josh Sargent
28. Tim Weah
29. Chris Richards
30. Antonee Robinson
31. Yunus Musah
32. Sam Vines
33. Sebastian Lletget
34. Jordan Pefok
Here’s what the numbers show:
· Of the 34 total players, only 9 (or 26%) had college experience
· 3 of the 9 players with college experience were goalkeepers
· Only 1 of the 9 players with college experience is listed as a forward (Jordan Morris)
· 6 of the 9 players with college experience only played 1 or 2 years in college.
· Only 2 players had 4 years of college (Matt Turner, Aaron Long)
The numbers were similar with this U23 Men’s National Team roster:
1. Drake Callender |
2. Matt Freese |
3. JT Marcinkowski |
4. David Ochoa |
5. Julian Araujo |
6. Marco Farfan |
7. Justen Glad |
8. Aaron Herrera |
9. Henry Kessler |
10. Mauricio Pineda |
11. Auston Trusty |
12. Sam Vines |
13. Frankie Amaya |
14. Cole Bassett |
15. Johnny Cardoso |
16. Hassani Dotson |
17. Andres Perea |
18. Tanner Tessmann |
19. Eryk Williamson |
20. Jackson Yueill |
21. Jesus Ferreira |
22. Jonathan Lewis |
23. Ulysses Llanez |
24. Benji Michel |
25. Djordje Mihailovic |
26. Ricardo Pepi |
27. Sebastian Saucedo |
28. Sebastian Soto |
· Of these 28 players, 12 (or 43%) had college experience
· Of these 12 players, 3 of those are goalkeepers
· Only 3 players played 4 years in college
· Of the 8 forwards on the roster, only 2 had college experience (for 4 total years)
So, what do these numbers tell us? Basically, most of our elite soccer players did not play in college. Now, please understand that I am not saying playing college soccer causes players to not become elite..., i.e. that playing college soccer causes the elite academy player to not become an elite adult player. I didn’t perform any type of causation analysis (which, as an attorney, I frequently do for my legal cases). I’m just pointing out the numbers that show that most of our elite players do not play college soccer, that the players that did play college soccer were mostly goalkeepers (and not forwards), and that those players that played college soccer normally did not play all 4 years.
What about MLS? A review of statistics from the 2020 MLS Season, courtesy of https://mlsmultiplex.com/2021/01/29/college-soccer-mls-season/, is revealing. Summarizing what they found:
· 271 MLS players played at least 1 season in college. Of those 271 players:
o About 45% played in 10 games or less.
o 15% did not play in a single match.
o About 50% started 1-10 matches.
o About 6% started 21 matches or more.
o About 65% started 0-10 games.
So, those are the numbers.
MLS & Territorial Rules
However, recently MLS has decided to loosen its rules on how and when youth soccer players can move from club to club. In the past, having Territorial Rights meant that an MLS team has rights to any player who lives in their area – which typically is between 75 and 100 miles from the team’s base location. The MLS team would have rights to the player even if the player has never played for the club or has no interest in playing for the club.
Now, however, MLS has approved of a new system which is centered around a “protected list” of players. MLS clubs will be allowed to place up to 54 players on their youth protected lists. 45 of these players may come from the MLS club’s academy, and 9 of these players may include players who are not in their academy but are nonetheless in their “homegrown territory.” Players on this protected list cannot sign a professional deal with another MLS club without the new club negotiating a trade for their rights.
Certain players may play for a MLS club academy team, but not be on the club’s protected list. These players can still move to another club’s academy and eventually sign a homegrown deal with that new club’s first team so long as the new club pays the old club a set amount of money (as determined by MLS). Note that a Homegrown Player is one that a club can sign without subjecting the player to the MLS SuperDraft; however, that player must have been a member of that club’s youth academy for at least 1 year and meet certain minimum training requirements.
Certain players may live in a MLS homegrown territory but they do not play for a MLS academy club or on that club’s protected list. These players will be able to move freely to MLS clubs based outside of their territory, and the new club will not have to pay any compensation to the old club for that player.
There is more to the new set of rules.
Of the 54 protected players:
· Teams must protect between 10 and 20 players from their respective U15 and U17 MLS Next Academy teams.
· Teams must protect between 5 and 15 players from their U19 MLS Next Academy team. If a club does not have a U19 MLS Next Academy team, they can only protect a maximum of 40 registered academy players.
· Of the 9 non-registered players on a MLS club’s protected list, a maximum of 5 can be protected from any specific age group.
It has been reported that MLS clubs can update their protected lists every few months and the next update will come in January of 2023.
These new rules are meant to achieve a compromise between the 2 opposite views on MLS’s territorial rules. Some believe that giving MLS teams complete control over a certain market will encourage them to discover players in that area, invest in them and develop talent without the threat of other clubs poaching players from that area. On the other hand, some believe that there is no way that one MLS club can truly develop the thousands of youth players in a given territory so the territorial system does not work as intended.
We’ll have to see how all this plays out, so stay tuned!
For more information, contact Mario Iveljic, a registered Intermediary with Mag Mile Sport and an attorney, at info@magmilesport.com.
Solidarity Payments In Soccer
When it comes to international soccer transfers, the main thing reported in the press is the amount of the transfer. Soccer fans have likely heard how Gareth Bale transferred from Tottenham Hotspur to Real Madrid for a transfer fee of $105.56M. Or how Neymar transferred from Barcelona to Paris Saint-German for $270M.
Related to transfer fees are “solidarity” payments, which are not frequently reported on. Under FIFA’s Regulations on the Status and Transfer of Players (FIFA’s RSTP), FIFA provides for a “solidarity mechanism” designed to encourage “solidarity in football.” The Solidarity Mechanism provision is contained in Article 21 of FIFA’s RSTP and provides:
If a professional is transferred before the expiry of his contract, any club that has contributed to his education and training shall receive a proportion of the compensation paid to his former club (solidarity contributions).
Solidarity payments have been characterized as the brother or sister of training compensation, which we discuss in another blog. Unlike training compensation, which is payable only at once, and in relation to a specific player, if the solidarity mechanism applies, it will apply to all the clubs that have trained and educated the individual player concerned. According to FIFA, the key feature of the solidarity contribution is that, in principle, it is payable in connection with every international transfer compensation over the course of a player’s career.
There are notable differences between training compensation and solidarity payments. First, a philosophical difference – training compensation is designed to reimburse the investment made by clubs in training and developing young players. On the other hand, the solidarity mechanism is designed to strengthen the notion of solidarity in football.
Second, the right to claim a solidarity payment is not linked to a specific age, unlike training compensation; even if a professional player is transferred at the age of 34, for example, the clubs that trained that player will be entitled to a solidarity contribution provided all the associated conditions are met.
Third, clubs are entitled to solidarity payments for the player’s entire training and education between the ages of 12 and 23.
Fourth, the way that solidarity payments are calculated differs from how training compensation is calculated. Training compensation is calculated based on pre-set estimated training costs. However, solidarity payments are calculated as a percentage of the agreed transfer fee.
The last difference is that solidarity payments only apply if a professional player moves before their contract expires, while a training compensation payment can be payable if a professional player moves at the end of his contract.
How much is a solidarity payment? Under Article I, Annexe 5 of FIFA’s RSTP, if a professional moves during the course of a contract, 5% of any compensation paid within the scope of the transfer (not including training compensation) is deducted from the total amount of the transfer. This 5% is then distributed by the new club to the club(s) involved in the player’s training and education over the years. The amount each training club would receive would depend on when they trained a player. Here is how FIFA breaks it down:
The club that trained a player during the calendar year of the player’s 12th birthday receives 5% of the 5%.
The club that trained a player during the calendar year of the player’s 13th birthday receives 5% of the 5%.
The club that trained a player during the calendar year of the player’s 14th birthday receives 5% of the 5%.
The club that trained a player during the calendar year of the player’s 15th birthday receives 5% of the 5%.
The club that trained a player during the calendar year of the player’s 16th birthday receives 10% of the 5%.
The club that trained a player during the calendar year of the player’s 17th birthday receives 10% of the 5%.
The club that trained a player during the calendar year of the player’s 18th birthday receives 10% of the 5%.
The club that trained a player during the calendar year of the player’s 19th birthday receives 10% of the 5%.
The club that trained a player during the calendar year of the player’s 20th birthday receives 10% of the 5%.
The club that trained a player during the calendar year of the player’s 21st birthday receives 10% of the 5%.
The club that trained a player during the calendar year of the player’s 22nd birthday receives 10% of the 5%.
The club that trained a player during the calendar year of the player’s 23rd birthday receives 10% of the 5%.
There are a couple things to note with solidarity payments. First, training clubs are only entitled to solidarity payments if: (1) the professional is transferred between clubs of different national associations; or (2) a professional is transferred between clubs affiliated with the same association, but the training club is affiliated to a different association.
Next, the solidarity mechanism does not impose any additional financial burden on the new club. The solidarity payment is deducted from the transfer fee and then distributed to the training clubs who are entitled to solidarity payments.
In addition, it is the new club’s responsibility to make the solidarity payment. It is not the responsibility of the player or the transferring club.
This is only a general idea of how the solidarity mechanism works. For more information, contact Mario Iveljic, an Intermediary at Mag Mile Sport and an attorney, at info@magmilesport.com
Soccer & The NCAA
Elite youth soccer players in the USA generally must consider one of two paths after they complete high school. Should they try to play soccer professionally somewhere, perhaps in the MLS or Europe? Or, should they try to play soccer in college? Those two paths are mutually exclusive, because the soccer player that turns professional can no longer play college soccer. Some players delay this decision for a year after high school and choose to take a “gap year” where they may train and play with a professional team for one year before making their final decision on college. These players are hedging their bets: they either succeed abroad and are offered a professional contract; or, they are not offered a professional contract but they receive valuable training from a professional club that will greatly benefit them in college.
Having said that, what can elite youth soccer players do without losing their college eligibility? Can they accept payments from professional clubs while competing with them after high school? Can they speak to agents? Can they agree to be represented by an agent down the road, after they finish college, without signing any written agent agreement? What kind of payments can they accept? The NCAA Regulations address all these issues, and it is important for young soccer players and their families to understand the key points, which we address here.
The key bylaws regarding amateurism are contained in Article 12 of the NCAA Regulations, which are titled “Amateurism and Athletics Eligibility.” The main point to remember is that NCAA athletics are reserved for “amateurs.”
An individual can lose their amateur status because of activities done prior to enrollment in college and they can lose their amateur status while enrolled in college as student-athletes. There is a myriad of ways that an individual or student-athlete can lose their college eligibility, meaning that they did something that turned them from an amateur soccer player to a professional.
Here is the basic rule - an individual loses their amateur status if they:
1. Use athletics skill for “pay” in any form in that sport;
2. Accepts a promise of “pay” even if such pay is to be received following completion of intercollege athletics participation;
3. Signs a contract or commitment of any kind to play professional athletics, regardless of its legal enforceability or any consideration received, except as explicitly permitted by the NCAA;
4. Receives a salary, reimbursement of expenses or any other form of financial assistance from a professional sports organization based on athletics skill or participation except as explicitly permitted by the NCAA;
5. Competes on any “professional athletics team” (which is defined as a team that declares itself to be professional, or a team that provides any of its players more than actual and necessary expenses for participation on the team), even if no pay or renumeration for expenses was received – if the individual receives more than “actual and necessary expenses to participate on the team.”
6. After full time college enrollment, enters into a professional draft; or
7. Enters into an agreement with an “agent.”
Many terms are specifically defined in the NCAA Regulations, so it is important to know what those terms mean. The terms, as used by the NCAA, may be broader than you think.
For instance, there are many prohibited forms of “pay.” Under the NCAA Regulations, prohibited forms of “pay” include salary, gratuity or compensation; any division or split of bonuses or game receipts; certain educational expenses; excessive or improper expenses, award and benefits; payment based on an individual or team’s performance that exceeds actual and necessary expenses; and participating for pay in “superstars” competitions.
A key concept of the NCAA Regulations relating to “pay” involves “actual and necessary expenses.” This term is used throughout the Regulations. Certain regulations allow for individuals and student-athletics to receive “pay” in the form of “actual and necessary expenses,” but nothing more. Therefore, it is important to know what “actual and necessary expenses” include and what they do not include.
Under the NCAA Regulations, permissible actual and necessary expenses include:
1. Meals
2. Lodging
3. Apparel, equipment and supplies
4. Coaching and instruction
5. Health/medical insurance
6. Transportation (expenses to and from practice and competition; cost of transportation from home to training/practice site at the beginning of the season/preparation for an event and from training/practice/event site to home at the end of season/event)
7. Medical treatment and physical therapy
8. Facility usage
9. Entry fees
10. Other reasonable expenses
The value of such actual and necessary expenses must be commensurate with the fair market value of similar goods and services in the locality in which the expenses are provided and must not be excessive in nature (so, an elite soccer player probably can’t be given a 5-star hotel room for lodging). Also, actual and necessary expenses shall not include the expenses or fees of anyone other than the individual who participates as a member of the team (so, actual and necessary expenses would normally not include those of a player’s parents or their friends who are along for the ride).
Here are some other key concepts:
Use of Agents.
An “agent” is defined by the NCAA as any individual who, directly or indirectly: (a) represents or attempts to represent an individual for the purpose of marketing the individual’s athletics ability or reputation for financial gain; or (b) seeks to obtain any type of financial gain or benefit from securing a prospective student athlete’s enrollment at an educational institution or from a student athlete’s potential earnings as a professional athlete.
The NCAA general rule is that an individual is ineligible for participation in an intercollegiate sport if the individual ever agrees - orally or in writing - to be represented by an agent for the purpose of marketing athletics ability or reputation in that sport. Along those lines, an individual is ineligible if they enter into an oral or written agreement with an agent for representation in future professional sports negotiations that are to take place after the individual has completed eligibility in that sport. Moreover, an individual is ineligible if he or she - or their family members or friends - accepts transportation or other benefits from: (a) any person who represents any individual in the marketing of athletics ability; or (b) an agent - even if the agent has indicated no interest in representing the student athlete in the marketing of the student athlete’s athletics ability or reputation and does not represent individuals and that student athlete sport.
The key takeaway with agents is that although individuals and student athletes may speak to agents, it is important that they receive nothing from the agent in terms of compensation (not even a free cup of coffee!), and they should not discuss or make any agreement for the agent to represent the player when they decide to turn professional.
Use of Attorneys.
Securing advice from a lawyer concerning a proposed professional sports contract is not considered contracting for representation by an agent unless the lawyer also represents the individual in negotiations for such a contract. Also, a lawyer may not be present during discussions of a contract offer with a professional organization or have any direct contact (in person, by telephone or by mail) with a professional sports organization on behalf of the individual. A lawyer’s presence during such discussions is considered representation by an agent.
Tryouts.
An individual may take part in a tryout with a professional team or league prior to full-time collegiate enrollment if no more than actual and necessary expenses are received to participate. After full-time college enrollment, an individual who has eligibility remaining may try out for a professional soccer team or participate in a combine including that team at any time, provided that the individual does not miss class and they receive no more than actual and necessary expenses with one 48-hour tryout per professional team (the individual can stay more than 48 hours, but they have to pay for all their expenses after 48 hours and they cannot miss any classes).
Practice.
Prior to initial full-time enrollment, an individual may participate in practice sessions conducted by a professional team if that no more than actual and necessary expenses is received to participate. After initial full-time college enrollment, an individual may participate in practice sessions conducted by a professional team if the individual does not receive any compensation other than actual and necessary expenses for the practice sessions over the course of a 48-hour period and does not miss class (the individual can stay longer if they pay their own way and do not miss class); does not enter into any contract or agreement with the professional team or sports organization; and does not take part in any outside competition as a representative of a professional team.
Competition.
An individual may participate as a member of an amateur team against professional athletes or professional teams.
Before initial full-time college enrollment, an individual may compete on a professional team if the individual does not receive more than actual and necessary expenses to participate. Otherwise, an individual shall not be eligible for intercollegiate athletics in a sport if the individual ever competed on professional team in that sport.
This provision allows high school graduates to take that gap year abroad and compete with a professional sports team, provided that they receive no more than actual and necessary expenses in doing so.
This provision also allows for college soccer players to participate with USL 2 teams during the summer because those teams are still considered “amateur,” or as the USL calls them – “pre-professional.” Therefore, they are participating as a member of an amateur team against other teams.
Draft and Inquiry.
An individual may inquire of a professional sports organization about eligibility for professional league player draft or request information about the individual’s market value without affecting the individual’s amateur status. However, after initial full-time college enrollment, an individual loses amateur status in a particular sport when the individual asks to be placed on the draft list or supplemental draft list for a professional league in that sport, even though: the individual asks to be removed from the draft list prior to the actual draft; the individual’s name remain on the list but the individual is not drafted; or the individual is drafted but does not sign an agreement with any professional athletics team. There is one key exception to this rule for soccer players.
A student athlete in the sport of soccer may enter a professional league draft one time during collegiate participation without jeopardizing eligibility in that sport, provided that the student athlete is not drafted and, within 72 hours following the draft, declares the intention to resume participation in intercollegiate athletics.
Negotiations.
An individual may request information about professional market value without affecting amateur status. Further, the individual or their family members or the institution's professional sports counseling panel may enter into negotiations with the professional sports organization without the loss of the individual’s amateur status. However, an individual who retains an agent shall lose amateur status.
As you might imagine, the NCAA Regulations are long and a bit complex. These are only the key points regarding amateurism and every specific situation must be analyzed thoroughly because situations can vary considerably. It is also important to seek the advice and counsel of those who are familiar with the regulations and how they are applied.
For more information, contact Mario Iveljic, a registered Intermediary at Mag Mile Sport and an attorney, at info@magmilesport.com
What Is Training Compensation?
The concept of “training compensation” is one that is acknowledged by many, but – unsurprisingly - completely understood by few. The concept of training compensation is not terribly difficult to understand in theory, but it can be hard to understand and apply in practice given all of the factors and variables that come into play when determining whether training compensation is due and what amount of compensation is due.
Let’s first start by remembering that the FIFA Regulations on the Status and Transfer of Players “lay down global and binding rules concerning the status of players, their eligibility to participate in organized football, and their transfer between clubs belonging to different associations.” The transfer of players between clubs belonging to the same association is governed by specific regulations issued by the association concerned; “such regulations should also provide for a system to reward clubs affiliated to the relevant association investing in the training and education of young players.”
Remembering that FIFA is focused on regulating the “international” transfer of players, let’s start with the rule, which is found in Article 20 of the FIFA Regulations on the Status and Transfer of Players:
Training compensation shall be paid to a player’s training club(s): (1) when a player is registered for the first time as a professional, and (2) each time a professional is transferred until the end of the calendar year of his 23rdbirthday. The obligation to pay training compensation arises whether the transfer takes place during or at the end of a player’s contract.
FIFA has acknowledged that Article 20 does no more than summarize the main principles of the training compensation system. This system is designed to reward clubs that invest in training and educating young soccer players whenever a player that they train becomes a professional. Clubs that do not invest in training and educating young players are made to reimburse the clubs who trained the players that becomes a professional (the “training clubs”), as in principle, they are profiting from the training and education provided by those training clubs.
The technical details of training compensation are set out in Annexe 4. Here is what you need to know:
In Article I of Annexe 4, FIFA provides :
A player’s training and education takes place between the ages of 12 and 23. Training compensation shall be payable, as a general rule, up to the age of 23 for training that occurred up to the age of 21, unless it is evident that a player has already terminated his training period before the age of 21. In the latter case, training compensation is payable until the end of the calendar year in which the player reaches the age of 23, but the calculation of the amount payable is based on the years between the age of 12 and the age when it has established that the player actually completed his training.
Let’s break this down a little bit to make it more understandable.
First, clubs that trained players between the ages of 12 and 21 (up to and including the calendar year of the player’s 21stbirthday) may be entitled to receive training compensation payments.
Second, clubs that employ players up to the age of 23 may be required to pay training compensation to training clubs.
Third, if a player has clearly finished their training period before they turn 21, the calendar years to be taken into consideration for the purposes of training compensation will be those between the player’s 12th birthday and the calendar year in which they completed their training period. The club that is liable to pay training compensation (and hopes to reduce that payment by showing that training was completed early) must prove that the player completed their training early. The fact that a player has signed the first professional contract alone does not automatically indicate that they have completed their training. Other, more persuasive indications, according to FIFA, which show that a player has completed their training might include: having played regularly in official matches for their training club’s first team; having been called up to the “A” team of the national association, or the Under 21 representative team (i.e., having “national team” experience”); having been loaned, in return for transfer compensation, to a club at the same level as the training club or above; having reached a certain age threshold; or having previously been transferred as a professional player in return for significant transfer compensation.
The next important concept is understanding exactly when training compensation is due. Article 2 of Annexe 4 provides:
Training compensation is due when, before the end of the calendar year of a player’s 23rd birthday, that player is (a) registered for the first time as a professional or (b) transferred between clubs of 2 different associations. Training compensation is not due if (a) the former club terminates the player’s contract without just cause; or (b) the player is transferred to a “category 4” club; or (c) a professional reacquires amateur status on being transferred.
In simple terms, training compensation is due if either of the following situations occurs:
A player is registered for the first time as a professional before the end of the calendar year of their 23rd birthday, and their training clubs are affiliated to a different national association than that of his current club – the “First Registration as a Professional”; or
A professional is transferred between clubs affiliated to different national associations before the end of the calendar year of their 23rd birthday – the “International Transfer as a Professional”.
Where the player’s first registration as a professional is with the same club where they have been trained their whole career (i.e., they are simply promoted through the ranks from an amateur youth player until they earn a professional contract), no training compensation is payable. However, if this professional player then goes on to transfer from their training club to a club affiliated to a different national association before the end of the calendar year of their 23rd birthday, their training club will be entitled to training compensation for the period they were trained, both as an amateur and as a professional. For a training club to be able to claim training compensation pursuant to the regulations in the case of a first registration of the player as a professional, that registration must have been for a club affiliated to a different member association from the one to which the training club is affiliated. So, for instance, if a player is part of a MLS club’s academy, then signs with the MLS club as a professional, and then is transferred to a club overseas, the club overseas would pay the MLS club training compensation for the entire time the player was being “trained” by that MLS club – whether in the MLS club’s academy or even while signed under a professional contract with that MLS club (so long as their still considered to be undergoing training and education and not considered as a professional as explained above).
The last concept which we address here is who has the responsibility to pay training compensation. Article 3 of Annexe 4 provides that upon registering as a professional for the first time, the club with which the player is registered is responsible for paying training compensation to every club with which the player has previously been registered and that has contributed to his training starting from the calendar year of his 12th birthday. In the case of subsequent transfers of that professional, training compensation is only owed to his former club for the time he was effectively trained by that club.
There are two different scenarios, again – the First Registration as a Professional and the International Transfer as a Professional. The key principle to remember for both situations is that any club that trained a player between the calendar year of his 12th and 21st birthday is only entitled to receive training compensation once, if at all.
The first registration as a professional is relatively straightforward. A new club must pay training compensation when a player is registered for the first time as a professional before the end of the calendar year of their 23rd birthday, and the training clubs are affiliated to a different national association than that of his current club. Put simply, the first registration must be with a club that is in a different national association than the training clubs.
Training compensation can get tricky with international transfers as a professional. If a professional transfers internationally prior to the end of the calendar year of their 23rd birthday, training compensation will only be owed to the releasing club for the time it was responsible for training the player. This feature of the system is, according to FIFA, encapsulated in the phrase “the first registration of a player as a professional breaks the chain.” This principle is applied in a strict manner. This is reflected in the fact that if an amateur player is transferred nationally (i.e., between clubs affiliated to the same national association) and acquires professional status at their new club, the chain is considered to have been broken. If the player then goes on to be transferred internationally to a third club, as a professional player, before the end of the calendar year of their 23rd birthday, only the players last club prior to the international transfer will be entitled to claim training compensation. None of the previous training clubs will be entitled to training compensation from this second transfer. This is because the national transfer will not trigger the application of the provisions on training compensation. Any compensation or rising from the national transfer will be governed by the national regulations issued by the member national association concerned.
In this regard, FIFA has encouraged national associations to draft regulations that include provisions rewarding clubs for investing in the training and education of young players; the principle that the first registration breaks the chain is based on the presumption that member associations will have such a system in place. The amounts provided by national schemes may differ markedly from those payable under the regulations.
So let’s try to recap all of this using examples.
Example 1: an MLS club academy player signs a professional contract with that same MLS club, and the MLS club eventually transfers that player overseas. Here, the overseas club would need to pay training compensation to the MLS club for the time they trained the player from 12 to 21 years of age.
Example 2: a youth soccer player in the USA is part of an MLS Next academy that is not affiliated with an MLS club (the “training academy”). That player then leaves that training academy for an academy that is part of an MLS club when he is 18 years old. If that player then signs a professional contract with that MLS club before he turns 23 (and is a true “professional” and not still training), the training academy is not entitled to training compensation because that transfer is not between clubs of different national associations. We’re still dealing with 1 national association – the U.S. Soccer Federation.
Example 3: Using the same player from Example - if that player then is transferred from the MLS club to a club in Europe before he turns 23, the European club would need to pay the MLS club training compensation if the player was still “training” with the MLS club even though he signed a professional contract. The MLS Next academy club is not entitled to transfer compensation.
Note that in Examples 2 and 3, the MLS Next academy club that is not affiliated with an MLS senior club is completely cut out of any transfer compensation. In order for that training club to be entitled to training compensation, the first transfer of that player as a professional needs to be to a club of a different national association. Using our prior examples, in order for the training academy to receive training compensation, the first transfer of the player needs to be directly from the training academy to the European club (with no stop in between with the MLS club). Once the player transfers from the training academy to the MLS club, that training academy forever loses its right to transfer compensation.
Why does a player need to know about training compensation? Most importantly for the player, training compensation can affect how marketable the player is. If the player we discussed above trained at an academy for 8 years, and then wants to sign as a professional overseas, clubs overseas would need to pay 8 years of training compensation to the training academy, on top of whatever wages they agree to pay the player. If there is another player who is available to an overseas club for less or no training compensation, then that player can be signed for less money than the player with the 8 years of training compensation. The professional club can save money and invest in other players instead of paying 8 years of training compensation.
The final question is how much training compensation must be paid. The amount depends, and it is not something we will discuss here. But feel free to contact us if you’d like to know more about this.
For more information, contact Mario Iveljic, a registered Intermediary at Mag Mile Sport and an attorney, at info@magmilelaw.com.
The Young Soccer Professionals
The sport is widely played here in the USA. According to the Sport and Fitness Association, 17.8 million Americans played soccer in 2020, compared to 2.3 million who played ice hockey. 1.2 million kids aged 13-17 played soccer in 2020. There are literally thousands of soccer clubs all across the country.
Make no secret, many young soccer players aspire to become professionals. Many of them dream of playing professionally here and in Europe. Many of them want to do this as soon as possible and are willing to sacrifice a “normal” childhood to make this happen. Social media is full of Facebook, Instagram and Twitter accounts of young soccer players with posts of their game footage, video highlights or just messing around with the soccer ball in their back yard. They want these posts to be seen, hopefully by someone who can help them become a professional.
But – even if you’re good enough – can anyone just sign a professional contract? Are there any restrictions or requirements before signing? Can a 14-year-old American citizen sign a professional contract with an MLS club? With a USL club? With a club overseas?
Many individuals don’t know that FIFA regulates this specific issue and provides a framework for who can sign a professional contract, when they can sign a professional contract, and under what circumstances they can do so. Specific provisions relating to international transfers involving minors were first introduced by FIFA in 2001. Through the years, the regulations have been modified. The current regulations are based on a simple framework: a clear rule incorporating several exceptions.
Let’s start with the rule. Under the FIFA Regulations on the Status and Transfer of Players, Article 19 provides that “international transfers of players are only permitted if the player is over the age of 18.” What does this mean? If you are a young American soccer player, you cannot be the subject of an “international transfer,” i.e., sign a professional contract with a club outside of the USA, until you are 18 years of age (with limited exceptions that we will discuss below). So, that 15-year-old soccer player who only holds a US passport cannot sign a professional contract with a European club until he or she is 18 years old. Note that even if a national law states that an individual is deemed to have reached the age of majority at the age of 16 or 17, an individual from that country will continue to be considered a minor for purposes of the FIFA regulations until they turn 18 years old.
Now, here are the exceptions to this rule:
1. A player who is under the age of 18 can transfer abroad if his or her parents move to the country in which the new club is located for reasons not linked to soccer. In other words, if a parent of a minor player moves to a new country for reasons that have nothing to do with soccer, and the player follows them, the player should be able to continue to play soccer in their new home country. FIFA has stated that for this exception to apply, the reasons behind a decision by a minor's parents to move to a new country must not be at all linked to soccer, or, where a variety of reasons are at play, the motivation must not be predominantly or mainly linked to soccer. The chronology of the events relating to the move to the new country plays an important role in determining whether this burden of proof is met or not met.
2. A player between the ages of 16 and 18 can transfer abroad if the transfer takes place within the territory of the European Union or the European Economic Area or the transfer takes place between two associations within the same country. This exception is triggered irrespective of the player’s nationality. A minor player does not need to be a national or citizen of an EU or EEA member state. This is an exception that might be the most important for young American soccer players to understand. This is the exception that allowed Christian Pulisic to move to Borussia Dortmund when he was only 16 years of age. He was able to obtain a Croatian passport as a result of his Croatian heritage. Because he also had a Croatian passport (in addition to his US passport), his transfer was considered to be within the EU, and allowed when he was 16 years old. Also, in order for this exception to apply, the club must provide the player with adequate football education and training; adequate academic and/or vocational education and training; and care, supervision and accommodations (i.e., providing the player with a trusted host family to live with or living at the club’s campus).
3. A player under the age of 18 can transfer abroad if they live no further than 50km from a national border and the club where they want to play in another country is also within 50 km of that border.
4. A player under the age of 18 can transfer abroad if they are fleeing their country of origin for humanitarian reasons, specifically related to his life or freedom being threatened on account of race, religion, nationality, belonging to a particular social group, or political opinion, without his parents and is therefore at least temporarily permitted to reside in the country of arrival.
5. A player under the age of 18 can transfer abroad if they are a student and move without their parents to another country temporarily for academic reasons in order to undertake an exchange program. The duration of the player registration for the new club until he turns 18 or until the end of the academic or school program cannot exceed one year.
There are other regulations associated with minor transfers, but these are the main regulations that minors (and their parents) should understand. FIFA strictly implements these provisions. Their stated goal is to protect minor players from being compromised. FIFA has noticed that through the years, some unscrupulous clubs and individuals have gone to incredible lengths to circumvent the rules on the protection of minors. For instance, intermediaries or soccer agents have legally adopted talented young players purely to make use of the exception granted when a child's parents move countries for reasons not linked to soccer. Other players have forged their passports, while some clubs have employed one of the minor’s parents as a gardener or secretary in an attempt to bypass the regulations. Therefore, FIFA has stated that the only way to avoid this sort of mistreatment and abuse of young soccer players is by applying this article in a rigorous and systematic manner.
For more information, contact Mario Iveljic, a registered Intermediary with Mag Mile Sport and an attorney, at info@magmilelaw.com.
Professional Soccer: Who's The Boss?
When it comes to the oversight of football/soccer players, people often wonder who is in charge? Who is the boss? And no, we’re not talking about the hit TV show from back in the 1980’s. We’re talking about who has the authority to make rules regarding soccer player and decide disputes when they arise.
Most simply, there are two governing authorities: (1) FIFA (the Federation Internationale de Football Association; and (2) individual national soccer associations (such as the United States Soccer Federation). Think of FIFA as the federal government, and the individual national soccer associations as the state governments. Each has the authority to make certain rules regarding soccer players and each has the authority to decide certain disputes when they arise.
Here is how it works.
FIFA has stated that it has the statutory objective to draw up regulations and provisions governing the game of football and related matters and to ensure their enforcement. Therefore, FIFA has drafted rules called “Regulations on the Status and Transfer of Players,” the most recent version being completed in July of 2022. These regulations provide “global and binding rules” regarding three general areas: (1) the status of players; (2) their eligibility to play organized soccer; and (3) their transfer between clubs belonging to different national associations (i.e., international transfers). These regulations attempt to provide answers for many common questions concerning the sport. For example, which categories of players should be recognized and organized soccer? Under what conditions should they be authorized to participate in organized soccer? What is the nature of their relationship with their club? What kinds of relationships should the clubs have with each other? What should happen if these relationships are disrupted? How can players move between clubs and become eligible to play for new clubs?
So, FIFA is responsible for regulating the game internationally. But it also has a duty to respect the autonomy of its member associations – because certain issues that are of a purely domestic nature are regulated and enforced by individual national soccer associations. For instance, individual national soccer associations govern the transfer of players between clubs belonging to that individual soccer association (although those regulations must be approved by FIFA and must also provide for rules for settlement of disputes between clubs and players).
There are certain FIFA regulations that are mandatory and must be included without modification in a national soccer association’s regulations. One of these regulations deals with minor soccer players – meaning those soccer players under the age of 18 (which is something we discuss in another blog). The FIFA regulations also require associations to include appropriate means to protect contractual stability, paying due respect to mandatory national law and collective bargaining agreements. In other words, FIFA encourages the principle that contracts must be respected, that contracts may be terminated by either party without consequences where there is just cause and the principle that contracts may be terminated by professionals with sporting just cause. We discuss FIFA’s regulations on contracts in another blog.
Overall, then, there is a “three-tier” approach to regulating organized soccer:
The first tier, the “international tier,” refers to regulations that govern international issues, like international player transfers. These regulations are provided by FIFA.
The second tier, the “prescribed national tier,” relates to those obligations on member associations with respect to their national transfers rules, leaving no discretion regarding the introduction of such rules. In other words, this tier includes regulations that national associations must implement in accordance with FIFA rules. For instance, each member association must implement regulations governing the transfer of players between its affiliated clubs which must be approved by FIFA so FIFA can ensure that the mandatory FIFA provisions and required principles are included. Under this tier of rules, the freedom of member soccer associations to draw up their own national regulations is limited in certain respects.
The third tier, the “flexible national teir,” refers to certain principles that individual member associations must incorporate within their national regulations. The individual associations have the autonomy to decide on the details within their national regulations. For instance, the FIFA regulations require member associations to implement national rules for settling disputes between clubs and players in accordance with the principles of the FIFA regulations. Also, the national regulations must provide a system to reward clubs for their investment in the training and education of young players that become professional. Also, the FIFA regulations require member associations to ensure that contractual stability is protected in their national regulations.
This is only a general idea of how the regulations work. For more information, contact Mario Iveljic of Mag Mile Sport, who is a registered soccer agent (intermediary) with the U.S. Soccer Federation and an attorney, at info@magmilesport.com.