This is just me thinkin' here, so value it accordingly. Team X wants to acquire MLSer Y, but wants the player immediately after the MLS season is over. The league and Team X agree the player is worth $1M, and the team and the player agree on a signing bonus of $1M and a 3 year deal at $1M per year. Would the following be legal? 1. The player goes to MLS and buys out his contract at $1M. 2. The player is now a free agent, and can go anywhere, at anytime. 3. The player signs with Team X, for a $2M signing bonus at a 3 year deal at $1M per year. MLS gets their money, the player gets his money, and it doesn't cost Team X anything extra.
Something tells me if you were able to come up with this, then a lawyer in Europe thought of this as well, and it is covered in some sub-paragraph section.
In a word, no. Olaf, Martin and I have been round and round this bend in the road in our myriad "Landon Donovan's Contract Status" threads. To spare you the pain of reading dozens of posts, and in the interests of quoting "The Princess Bride," one of the all-time great cinematic masterpieces: "Let me explain... No, there is no time. Let me sum up." As of September 1, 2002, the transfer cut-off date, the player is under contract with MLS (i.e., NOT a free agent). He is frozen, as far as FIFA is concerned, until January's transfer window opens. Looking at it differently, ask the question: is any team governed by FIFA regulations carrying that player on its roster on the day the transfer window closes? If the answer is yes, he's not going anywhere until the next window opens. On the other hand, at least he collects his guaranteed contract... Practically speaking, that means he either plays for his MLS team or for no-one in "Division One" (FIFA term, not mine) footy anywhere in the world (which, by the way, doesn't include the A-League, so he's free to go play in Minny or Rochester during this time). If he buys out his contract, which he's free to do, he still can't sign with another FIFA team until January (and lets face it, every desirable club outside the U.S. is governed by FIFA). Now, if he becomes a free agent on August 31, 2002, he can still sign with said Euro club. But that's not the point, right? ONLY players OUT OF CONTRACT on the day the transfer window closes can still sign with a new club (FIFA agreed to this, against its better judgment, because it risked being dragged into an EU court and being found guilty of violating European Union labor laws). Even EU labor laws, however -- given sports' "special status" (Barry Bonds can't "quit" the Giants and go play for the Yankees mid-season for the same reason, even if he sued in a U.S. court, for the same reason) -- wouldn't allow a player under contract to move in mid-season, FIFA regulation or not, if the club didn't agree to release the player from his contract.
Absolutely right what Maverick said, except that at least in Germany key date for unemployment is July 1st - there the official season started and anyone who terminated his contract later has to blame himself for not having a team.
Olaf, that raises an interesting question: Was there any player stupid enough to exercise a buy-out after July 1st, thinking he would easily get an even better contract before September 1st, who then proceeded to be shut out of the market entirely (and can now not sign with a team until January because he was rostered on July 1st)? Wow, that would really chuck.
I think most players will eventually do what Dmitry Sychev is doing. He has essentially left Spartak Moscow with a couple years left on his contract. According to FIFA he must serve a 4 month ban which makes him eligible to go to any team in January. At that point the club that signs him will have to pay a fee set by a tribunal. His fee won't be that high because FIFA's system takes into account the players age, international caps and wages. His age boosts his fee but his wages are paltry. So Spartak will get a good sum but they won't get what they would have if there was a bidding war. So giving a MLS example: Clint Mathis goes to MLS and says he is breaking his MLS contract. There is nothing MLS can do about this it is rule set by FIFA that any player can leave a club when they wish. But if they leave before there contract expires he must serve a 4 month ban. So if Clint left MLS right now he would be eligible to transfer in the european window in mid Janaury. He won't be playing any matches from now until January in MLS anyway so the ban is useless. Although he won't be getting any wages. Now Clint can pick any club he wants to go to as long as they pay the fee set by FIFA. I think FIFA has set off a storm which Sychev has started.
Are FIFA lawyers THIS stupid?? Maverick, you ought to go over to FIFA HQ and ask for a job. You would immediately provide substantial improvement, as these guys are obviously idiots. In my mind, if everyone would follow basic contract law, and allow players and clubs the freedom to act within the confines of the provisions set forth in individual contracts, things would be much more rational. This transfer window crap, and ability to walk on contracts with penalties, is just messy untidy muck. Really, pretty bad.
Posted below is the relevant statute from FIFA's website. In the Mathis example it is possible, depending on the length of his contract and how much of it he has served, that he could leave and not have any sanctions imposed on him by FIFA. Of course he would still be unable to sign for any other team until Jan. as per reasons stated before. Art. 21 In the case of all contracts signed up to the players' 28th birthday: if there is unilateral breach without just cause or sporting just cause during the first 3 years, sports sanctions shall be applied and compensation payable. In the case of contracts signed after the 28th birthday, the same principles shall apply but only during the first 2 years. In the cases cited in the preceding two paragraphs, unilateral breach of contract without just cause is prohibited during the season. Unilateral breach without just cause or sporting just cause after the first 3 years or 2 years respectively will not result in sanctions. However, sports sanctions may be pronounced on a club and/or a players' agent for inducing a breach of contract. Compensation shall be payable. A breach of contract as defined in the preceding paragraph is prohibited during the season. Disciplinary measures may be applied by the Dispute Resolution Chamber if notice is not given in the 15 days following the last official match of the national season of the club with which the player is registered. Art. 22 Unless specifically provided for in the contract, and without prejudice to the provisions on training compensation laid down in Art. 13 ff, compensation for breach of contract (whether by the player or the club), shall be calculated with due respect to the national law applicable, the specificity of sport, and all objective criteria which may be relevant to the case, such as: Remuneration and other benefits under the existing contract and/or the new contract, Length of time remaining on the existing contract (up to a maximum of 5 years), Amount of any fee or expense paid or incurred by the former club, amortised over the length of the contract, Whether the breach occurs during the periods defined in Art. 21.1. Art. 23 Other than in exceptional circumstances, sports sanctions for unilateral breach of contract without just cause or sporting just cause shall be applied: 1. In the case of the player: If the breach occurs at the end of the first or the second year of contract, the sanction shall be a restriction of four months on his eligibility to participate in any official football matches as from the beginning of the new season of the new club's national championship. If the breach occurs at the end of the third year of the contract (or at the end of the second year if the contract was signed after the age of 28), no sports sanction shall be applied unless there was failure to give appropriate notice after the last match of the season. In such a case the sanction shall be proportionate. In the case of aggravating circumstances, such as failure to give notice or recurrent breach of contract, sports sanctions may be imposed for up to a maximum of six months. 2. In the case of the club breaching a contract or inducing such a breach: If the breach occurs at the end of the first or second year of the contract, the sanction shall be a ban on registering any new player, either nationally or internationally, until the expiry of the second transfer period following the date on which the breach became effective. In all cases, no restriction for unilateral breach of contract shall exceed a period of 12 months following the breach or inducement of the breach. If the breach occurs at the end of the third year of the contract (or at the end of the second year if the contract was signed after the age of 28), no sanctions shall be applied unless there was failure to give appropriate notice after the last match of the season. In such a case the sanction shall be proportionate. A club seeking to register a player who has unilaterally breached a contract during the periods defined in Art. 21.1 will be presumed to have induced a breach of contract. Without prejudice to the foregoing rules, other sports sanctions may be imposed by the FIFA Disciplinary Committee on clubs, where appropriate, and may include, but shall not be limited to, the following: fines, deduction of points, exclusion from competitions. Appeals against such sanctions may be lodged to the Arbitration Tribunal for Football (TAF). 3. In the case of a players' agent involved in such a breach Sanctions can also be imposed by the FIFA Players Status Committee on players' agents involved in a breach of contract, in compliance with the FIFA Players' Agents Regulations. Appeals against such sanctions may be lodged to the Arbitration Tribunal for Football (TAF). Art. 24 In addition to termination for just cause, it will also be possible for a player to terminate his contract for a valid sporting reason ("sporting just cause"). Sporting just cause will be established on a case-by-case basis pursuant to the procedure set out in Art. 42. Each case will be evaluated on its individual merits, taking account of all relevant circumstances (injury, suspension, player's field position, player's age etc.). Furthermore, sporting just cause shall be examined at the end of the football season and before expiry of the relevant registration period in the former club's national association. If sporting just cause has been established, it shall be determined whether compensation is payable and to what amount.
Sorry, as a lawyer I had to chuckle over the concept of "basic contract law". There really isn;t such a thing. The UCC articles for general contract law in the United States alone are thousands upon thousands of pages (not including the case law inside of them); then if your thow in various other regulations, especially in civil code nations. I mean think about the fact that the UK uses a similar to system to us, while the continenet is completely different, but sorry I didn't mean to ramble on legal points, but it is alwyas going to be a complex issue, because corporations, governmnets, unions, lawyers, agents, and players will always fight for their various rights. I just wonder how CM keeps up with it.
No, I already told in the Donovan matter that a player can't exercise a buy out clause at any time - usually he has to exercise it until a fixed deadline (often March 31) for the end of the season. Within the season in 99.99% of the cases such an option can't be used. This special case really has to be a contract termination. We had one case in the Bundesliga, where Holger Greilich of 1860 Munich agreed on terms with some club from Cyprus after July 1st. Orally he agreed on terminating the contract before he left, but when he was in Cyprus he was questioning his decision and returned to Munich where they didn't want to have him anymore. First Greilich wanted to hire a lawyer to claim that the contract termination was invalid (same old theater as always - is it enough to quit a contract orally?), but then he finally signed in Cyprus.
Worrying about loopholes might be a moot point in England: League Set For Window Exemption This might be good news for some MLS'ers
Well this would be for the the 1st 2nd and 3rd divisions but not the EPL. Of course this has no bearing on the rest of UEFA and with the British work permit issues, most MLSer's won't be looking at England anyway.