What happens if a footballer or club breaks a contract?
Under FIFA's rules, the party that breaks a football contract without just cause must pay compensation, as a principle at least the residual value of the contract. If the breach happens in the protected period, a player faces a four month playing ban and a club faces sanctions that can include a registration ban.
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The basic rule
A contract may only end when it expires or by mutual agreement, unless there is just cause (articles 13 and 14 of FIFA's Regulations on the Status and Transfer of Players).
Compensation
- The parties can agree the compensation in the contract. It does not have to be the same both ways. For players earning up to USD 150,000 a year, it must give the player at least the rest of the contract's value, unless exceptional circumstances justify less.
- Without an agreed amount, the injured party gets full compensation for the damage.
- As a principle, both players and clubs get at least the residual value of the contract.
- In cases of abusive conduct, a penalty of up to six monthly salaries can be added.
- The injured party must try to limit its loss, for example a player by finding a new club.
Sporting sanctions in the protected period
A player who breaks his contract in the protected period gets a four month ban from official matches, six with aggravating circumstances. A club gets a warning and a fine for a first breach, rising to registration bans for repeat breaches within two years (article 17).
The new club
A new club that induced the breach is jointly liable for the compensation. If the player signs for a new club within 45 days of his breach, the new club is presumed to have induced it unless it proves otherwise. Inducing a breach in the protected period means a two window registration ban.
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Questions people also ask
What is the protected period?
The first years of a contract: up to four seasons or years for players who sign before 23, fewer as players get older. Our article on the protected period explains it.
Can a collective agreement change these rules?
Yes. A collective agreement validly negotiated at national level can depart from the compensation principles.