A new FIFA RSTP 2027 Edition – the changes in detail
Introduction
On 10 June 2026, FIFA approved a new edition of its transfer regulations, the Regulation on the Status and Transfer of Players (hereinafter "FIFA RSTP"), which is scheduled to come into effect on 1 January 2027.
The changes in the FIFA RSTP must be seen in the context of the Diarra case where the European Court of Justice concluded that certain provisions of the FIFA RSTP were contrary to EU law, including Article 17(2) which stated that if a player had terminated his contract with his former club without just cause, the new club would be jointly and severally liable for payment of any compensation owed by the player to his former club. Article 17(4) which stated that the new club would be presumed to have caused a breach of contract where they signed a player who had terminated his previous contract without just cause, and a provision that the International Transfer Certificate (ITC) would not be issued for the duration of a contractual dispute between the player and his former club.
In the wake of the Diarra case, FIFA adopted an interim FIFA RSTP from 1st January 2025, in which the above three provisions were amended. These regulations will apply until the new editions comes into force on 1st January 2027.
In January 2025, a committee was set up with representatives from FIFA, EU, FIFPro, UEFA, European Football Clubs and European Leagues with the aim of proposing changes to the FIFA RSTP that were in line with EU law, in light of the Diarra case. It is this committee's work that forms the basis for the now adopted changes to FIFA RSTP.
The adopted version of the FIFA RSTP entails significant changes to the global transfer system.
More about the changes in the new FIFA RSTP
In the tables below, the differences between the FIFA RSTP version pre Diarra (June 2024), the interim version from 2025 and the new 2027 version are highlighted.
Conditions for valid unilateral termination of a contract
FIFA RSTP June 2024
Art. 14:
1. A contract may be terminated by either party without consequences of any kind (either payment of compensation or imposition of sporting sanctions) where there is just cause.
2. Any abusive conduct of a party aiming at forcing the counterparty to terminate
or change the terms of the contract shall entitle the counterparty (a player or
a club) to terminate the contract with just cause.
FIFA RSTP 2025 (interim)
Art. 14:
1. A contract may be terminated by either party without consequences of any kind (either payment of compensation or imposition of sporting sanctions) where there is just cause. In general, just cause shall exist in any circumstance in which a party can no longer reasonably and in good faith be expected to continue a contractual relationship.
2. Any abusive conduct of a party aiming at forcing the counterparty to terminate
or change the terms of the contract shall entitle the counterparty (a player or
a club) to terminate the contract with just cause.
FIFA RSTP January 2027
Art. 14:
1. A contract may be terminated by either party without consequences of any kind (either payment of compensation or imposition of sporting sanctions) where there is just cause. In general, just cause shall exist in any circumstance in which a party can no longer reasonably and in good faith be expected to continue a contractual relationship.
2. Any abusive conduct of a party aiming at forcing the counterparty to terminate
or change the terms of the contract shall entitle the counterparty (a player or a
club) to terminate the contract with just cause.
3. In particular, no club may:
a) abuse the registration or deregistration of a player as a means of pressure;
b) separate a player in an abusive manner from training with the team;
c) withhold a passport from a player;
d) unduly evict a player from their home.
Comment:
While the 2024 version was content to say that a contract could only be terminated unilaterally where there was just cause, the 2027 version goes somewhat further in that it has codified the practices of the FIFA Dispute Resolution Chamber (DRC) and CAS. The overarching principle from the 2024 version is continued, where a termination due to just cause will only exist in the event of a serious breach of contractual obligations by one party. The amendment specifies that a breach of contract may be considered sufficiently serious when there are objective circumstances that would make it unreasonable to expect that the employment relationship between the parties will continue.
Calculation of compensation following unilateral termination of a contract
FIFA RSTP June 2024
Art. 17(1)
Consequences of terminating a contract without just cause
The following provisions apply if a contract is terminated without just cause:
1. In all cases, the party in breach shall pay compensation. Subject to the provisions of article 20 and Annexe 4 in relation to training compensation, and unless otherwise provided for in the contract, compensation for the breach shall be calculated with due consideration for the law of the country concerned, the specificity of sport, and any other objective criteria. These criteria shall include, in particular, the remuneration and other benefits due to the player under the existing contract and/or the new contract, the time remaining on the existing contract up to a maximum of five years, the fees and expenses paid or incurred by the former club (amortised over the term of the contract) and whether the contractual breach falls within a protected period. Bearing in mind the aforementioned principles, compensation due to a player shall be calculated as follows:
i. In case the player did not sign any new contract following the termination of his previous contract, as a general rule, the compensation shall be Equal to the residual value of the contract that was prematurely terminated.
ii. In case the player signed a new contract by the time of the decision, the value of the new contract for the period corresponding to the time remaining on the prematurely terminated contract shall be deducted from the residual value of the contract that was terminated early (the “Mitigated Compensation”). Furthermore, and subject to the early termination of the contract being due to overdue payables, in addition to the Mitigated Compensation, the player shall be entitled to an amount corresponding to three monthly salaries (the “Additional Compensation”). In case of egregious circumstances, the Additional Compensation may be increased up to a maximum of six monthly salaries. The overall compensation may never exceed the rest value of the prematurely terminated contract.
iii. Collective bargaining agreements validly negotiated by employers’ and employees’ representatives at domestic level in accordance with national law may deviate from the principles stipulated in the points i. and ii. above. The terms of such an agreement shall prevail.
FIFA RSTP 2025 (interim)
Art. 17(1)
Consequences of terminating a contract without just cause
The following provisions apply if a contract is terminated without just cause:
1. In all cases, the party that has suffered as a result of a breach of contract by the counterparty shall be entitled to receive compensation. Subject to the provisions of article 20 and Annexe 4 in relation to training compensation, and unless otherwise provided for in the contract, compensation for the breach shall be calculated taking into account the damage suffered, according to the “positive interest” principle, having regard to the individual facts and circumstances of each case, and with due consideration for the law of the country concerned.
Bearing in mind the aforementioned principles, compensation due to a player shall be calculated as follows:
i. In case the player did not sign any new contract following the termination of his previous contract, as a general rule, the compensation shall be Equal to the residual value of the contract that was prematurely terminated.
ii. In case the player signed a new contract by the time of the decision, the value of the new contract for the period corresponding to the time remaining on the prematurely terminated contract shall be deducted from the residual value of the contract that was terminated early (the “Mitigated Compensation”). Furthermore, and subject to the early termination of the contract being due to overdue payables, in addition to the Mitigated Compensation, the player shall be entitled to an amount corresponding to three monthly salaries (the “Additional Compensation”). In case of egregious circumstances, the Additional Compensation may be increased up to a maximum of six monthly salaries. The overall compensation may never exceed the rest value of the prematurely terminated contract.
iii. Collective bargaining agreements validly negotiated by employers’ and employees’ representatives at domestic level in accordance with national law may deviate from the principles stipulated in the points i. and ii. above. The terms of such an agreement shall prevail.
FIFA RSTP January 2027
Art. 17(1)
Consequences of a breach of Contract
Agreed compensation
1. Parties are free to contractually agree on the financial compensation payable in the event of a breach of contract (the “agreed compensation”), subject to the following:
a) The agreement does not have to be reciprocal.
b) The Football Tribunal shall reduce an agreed compensation with restraint and only if it is excessively high. It shall disregard an agreed compensation if it is manifestly unfair.
c) For players earning a yearly fixed remuneration of up to USD 150,000 (or its equivalent), any agreement on the financial compensation payable to the player must, as a minimum, grant the player a payment equal to the residual value of the contract that was breached, unless exceptional circumstances justify a lower amount.
Calculation of compensation
2. Absent an agreed compensation, a party that suffers from a breach of contract is entitled to full compensation for the damage caused by the breach. Compensation shall be calculated taking into account the damage suffered, having regard to the individual circumstances of each case and subject to the criteria below.
3. A player shall be awarded full compensation for the damage caused by the breach. Depending on the circumstances of each case, this damage shall take into account, in particular, the residual value of the contract that was breached, and any other damage caused.
4. A club shall be awarded full compensation for the damage caused by the breach. Depending on the circumstances of each case, this damage shall take into account, in particular, the value of the services of the player, a lost transfer fee or lost transfer value, replacement costs, and any other damage caused.
5. As a principle, a player and a club shall always be awarded, as a minimum, an amount equal to the residual value of the contract that was breached. Only in extraordinary circumstances can the amount of compensation awarded be lower than the residual value.
Penalty payment
6. In the case of abusive conduct, a penalty payment of up to six monthly salaries shall be awarded to a player or a club.
Mitigation of damage
7. The party suffering damage from a breach of contract has the duty to mitigate their damage, subject to paragraph 5 above.
Collective bargaining agreements
8. Collective bargaining agreements validly negotiated by employers’ and employees’ representatives at domestic level in accordance with national law may deviate from the principles stipulated in paragraphs 2-7 above. The terms of such an agreement shall prevail.
Comment:
The new regulations provide for a new model for calculating compensation in the event of termination of a contract.
The 2024 version of FIFA RSTP Article 17 specifies a clear calculation method if a player has either terminated their contract with just cause, or if the club has terminated their contract without just cause. If the player has not signed for a new club, the player shall be entitled to an amount equal to salary for the remainder of the contract period. If the player has signed a contract with a new club, this salary shall be deducted from the compensation. Furthermore, the player will initially be entitled to three months' salary, but the total compensation cannot exceed the residual value of the contract. If the club is entitled to compensation, this shall be calculated according to the 2024 version of the FIFA RSTP on the basis of a principle of positive contractual interest, typically assessed on the basis of the remaining salary during the contract period, the transfer fee paid, and the cost of replacing the player.
Firstly, the new FIFA RSTP stipulates that the parties should agree on the financial compensation to be paid in the event of a breach of contract through a so-called liquidated damages clause. Such a clause sets out the compensation to be paid if a party terminates the contract without due cause, and differs from a buy-out clause, which comes into play if a third party/new club wishes to pay the transfer fee defined in the buy-out clause. Furthermore, a liquidated damages clause can apply both ways in a contract, i.e. compensation can be agreed both that will accrue to the player if the club breaks the contract, and compensation that will accrue to the club if the player breaks the contract. The new FIFA RSTP stipulates that such clauses do not necessarily have to be reciprocal. Furthermore, a pre-agreed compensation for players with a fixed annual salary of up to the equivalent of USD 150,000 must as a minimum give the player a payment equivalent to salary for the remaining contract period, unless extraordinary circumstances justify a lower amount.
FIFA DRC may further reduce a pre-agreed compensation if it is deemed excessive.
Although such clauses have also been common to some extent under previous versions of FIFA RSTP, the new provision is expected to lead to a significantly higher proportion of such clauses, and will put pressure on national football associations that prohibit such clauses to amend its regulations.
If the parties have not pre-agreed compensation in the event of a breach of the contract, the compensation must be calculated. The reference to national legislation has been removed, and is now replaced by the principle of full compensation. The overarching principle is that compensation should be calculated on the basis of the financial loss, not on the basis of a principle of positive contractual interest as in the inerim FIFA RSTP. The amendment means that the injured party claiming compensation must to a greater extent provide evidence of the financial loss caused by the breach of contract.
Regardless of this, the injured party will be guaranteed a minimum amount corresponding to the residual value of the contract, which can only be deviated from in extraordinary cases. Furthermore, it is possible to increase the compensation by up to six months' salary in the event of abuse. The parties' obligation to limit (mitigate) the financial loss is continued. However, the new FIFA RSTP is not entirely clear whether a player who is entitled to compensation and then gets a new job will have the minimum compensation (salary for the remaining contract period) reduced by the corresponding salary from the new club during the same period (which is the situation after the previous FIFA RSTP), or whether the player will be entitled to this minimum compensation anyway. This will probably be clarified by FIFA before the new FIFA RSTP comes into effect.
The new FIFA RSTP specifies that Art. 17 points 2 to 7 can be deviated from by collective agreement.
A player’s right to share of transfer fee
FIFA RSTP June 2024
[None]
FIFA RSTP 2025 (interim)
[None]
FIFA RSTP January 2027
Art. 21bis Player participation in transfer fees
1. Clubs and players are free to agree on a player’s participation in a transfer fee paid for that same player.
2. In the context of permanent international transfers, the following applies mandatorily to players earning less than a yearly fixed remuneration of EUR 150,000 (or its equivalent) with the releasing club during the season in which the international transfer occurs:
a) The releasing club must pay an amount equal to 5% of the total fixed transfer fee effectively received directly to the player.
b) The player can partially waive their participation. Such a waiver may only apply to the portion of the participation of 5% exceeding the higher of (i) the player’s fixed remuneration for the last year of contract with the releasing club or (ii) 2.5% of the total fixed transfer compensation. Any waiver that would result in a lower participation shall be disregarded for the proportion exceeding these limits.
c) If the fixed transfer fee is paid in instalments, the player’s participation shall be paid on a pro rata basis following receipt of the instalments by the releasing club. In any event, the participation shall be subject to tax, social security or other mandatory deductions.
3. No entitlement to participate shall exist under this article where:
a) this is either prohibited by national law, by applicable domestic regulations in force when these regulations are adopted, or by a collective bargaining agreement validly negotiated by employers’ and employees’ representatives at domestic level, or
b) a national law or such a collective bargaining agreement establishes a similar concept, under which a player is entitled to participate in the transfer fee, irrespective of whether such entitlement to participate would be payable by either the releasing or the engaging club according to their national law or such a collective bargaining agreement.
Comment:
An innovation in the new FIFA RSTP is that players will have a stake in the economic value generated by their own future transfer. Players who with an annual salary of less than USD 150,000 will receive at least 5% of the transfer fee. The provision aims to give players a reasonable share of the players' economic value, as the players themselves have contributed to this value. The player is no longer considered to be the subject of a transfer between clubs only, but will now participate in the economic value generated by the transfer.
Club’s joint and several liability
FIFA RSTP June 2024
Art. 17 (2)
If a professional is required to pay compensation, the professional and his new club shall be jointly and severally liable for its payment. The amount may be stipulated in the contract or agreed between the parties.
FIFA RSTP 2025 (interim)
Art. 17 (2)
A player’s new club shall be held jointly liable to pay compensation if, having regard to the individual facts and circumstances of each case, it can be established that the new club induced the player to breach their contract.
FIFA RSTP January 2027
Art. 17 (9)
Joint and several liability
The new club of the player shall be held jointly and severally liable to pay compensation if, having regard to the individual facts and circumstances of each case, it can be established on a balance of probabilities that the new club induced the player to breach the contract.
Art. 17 (19)
Presumption of inducement
For the purposes of paragraphs 9 and 10 above, if the player signs a new contract within 45 days of a breach of contract by the player, it shall be presumed that the new club induced the player to breach the contract. This presumption can be rebutted if the new club can demonstrate, to the comfortable satisfaction of the Football Tribunal, that it did not induce the player to breach the contract.
Comment:
In the 2024 version of FIFA RSTP, the player's new club was automatically held jointly and severally liable with the player for any compensation to which the former club was entitled. This provision was a safety net for the player who was considered responsible for paying compensation. On the other hand, the provision made it difficult for the player to find a new job, as new clubs would have reservations about hiring a player if that player had either unilaterally terminated his contract, or if his former club had unilaterally terminated the contract. The provision was considered illegal by the European Court of Justice in the Diarra case, and it was therefore expected that the provision would be changed in the new FIFA RSTP.
The new FIFA RSTP now states that the new club will be held jointly and severally liable with the player if it can be determined that the new club influenced the player to break the contract. If the new club signs a contract with the player within 45 days of the breach of contract, it must generally be assumed that the new club influenced the player to break the contract, and the burden of proof will then be shifted to the new club, which must prove that it did not influence the player to break the contract.
The new provision could make it easier for players to find a new job if the previous contract was unilaterally terminated. However, there are some negative consequences for players. Firstly, the player will always have an interest in the new club being held jointly and severally liable, and therefore do everything he can to prove that the new club actually made him break the agreement. This can create an uncomfortable situation for the player in his new work environment. Secondly, if the new club is not held jointly and severally liable, the financial consequences for the player could be dramatic.
Sporting sanctions against clubs
FIFA RSTP June 2024
Art. 17 (4) og (5)
In addition to the obligation to pay compensation, sporting sanctions shall be imposed on any club found to be in breach of contract or found to be inducing a breach of contract during the protected period. It shall be presumed, unless established to the contrary, that any club signing a professional who has terminated his contract without just cause has induced that professional to commit a breach. The club shall be banned from registering any new players, either nationally or internationally, for two entire and consecutive registration periods. The club shall be able to register new players, either nationally or
internationally, only as of the next registration period following the complete serving of the relevant sporting sanction. In particular, it may not make use of the exceptions stipulated in article 6 paragraph 3 of these regulations in order to register players at an earlier stage.
5. Any person subject to the FIFA Statutes and regulations who acts in a manner designed to induce a breach of contract between a professional and a club in order to facilitate the transfer of the player shall be sanctioned.
FIFA RSTP 2025 (interim)
Art. 17 (4) og (5)
4. A sporting sanction shall be imposed (i) on any club found to be in breach of contract during the protected period or (ii) on a player’s new club if, having regard to the individual facts and circumstances of each case, it can be established that the new club induced the player to breach the contract during the protected period. The club shall be banned from registering any new players, either nationally or internationally, for two entire and consecutive registration periods.
The club shall be able to register new players, either nationally or internationally, only as of the next registration period following the complete serving of the relevant sporting sanction. In particular, it may not make use of the exceptions stipulated in article 6 paragraph 3 of these regulations in order to register players at an earlier stage.
5. Any person subject to the FIFA Statutes and regulations who acts in a manner designed to induce a breach of contract between a professional and a club in order to facilitate the transfer of the player shall be sanctioned.
FIFA RSTP January 2027
Art. 17 (10) og 11
Sporting sanctions against clubs
A sporting sanction shall be imposed on any club found to be in breach of contract during the protected period within a recidivism period of two years as follows:
a) For a first breach of contract: a warning and a fine.
b) For a second breach of contract: a limitation preventing the club from registering more than five new players, either nationally or internationally, for one registration period, and a fine.
c) For a third breach of contract: a ban from registering any new players for one entire registration period, either nationally or internationally, and a fine.
d) For a fourth breach of contract: a ban from registering any new players for two entire and consecutive registration periods, either nationally or internationally, and a fine.
e) For any further breach of contract, the Football Tribunal may impose additional sanctions at its discretion.
f) In case of aggravating circumstances, the sanctions foreseen in c) or d) above can be imposed directly.
If, having regard to the individual facts and circumstances of each case, it can be established on the balance of probabilities that the new club induced a player to breach a contract during the protected period, a ban from registering any new players, either nationally or internationally, for two entire and consecutive registration periods, shall be imposed on the new club.
Where a limitation or ban from registering new players applies, the club shall be able to register new players, either nationally or internationally, only as of the next registration period following the complete serving of the relevant sporting sanction. In particular, it may not make use of the exceptions stipulated in article 6 paragraph 3 of these regulations.
Art. 17 (11)
Presumption of inducement
For the purposes of paragraphs 9 and 10 above, if the player signs a new contract within 45 days of a breach of contract by the player, it shall be presumed that the new club induced the player to breach the contract. This presumption can be rebutted if the new club can demonstrate, to the comfortable satisfaction of the Football Tribunal, that it did not induce the player to breach the contract.
Comment:
FIFA has introduced changes related to the introduction of sporting sanctions against clubs, where a progressive system is planned where the sanctions increase in line with the number of violations of the regulations. For the first violation, a fine and warning are planned, while repeated violations will lead to a ban on registering new players in subsequent transfer windows.
Clubs that have influenced players to break the contract can also be sanctioned. If it can be established that the new club caused the player to breach the contract and that this breach took place during the so-called "protected period", sporting sanctions shall be imposed on the new club. Article 11 (see above) on the conditions for a new club to be jointly and severally liable for compensation, applies correspondingly in these cases.
Sporting sanctions against players
FIFA RSTP June 2024
Art. 17 (3)
In addition to the obligation to pay compensation, sporting sanctions shall also be imposed on any player found to be in breach of contract during the protected period. This sanction shall be a four-month restriction on playing in official matches. In the case of aggravating circumstances, the restriction shall last six months. These sporting sanctions shall take effect immediately once the player has been notified of the relevant decision. The sporting sanctions shall remain suspended in the period between the last official match of the season and the first official match of the next season, in both cases including national cups and international championships for clubs. This suspension of the sporting sanctions shall, however, not be applicable if the player is an established member of the representative team of the association he is eligible to represent, and the association concerned is participating in the final competition of an international tournament in the period between the last match and the first match of the next season. Unilateral breach without just cause or sporting just cause after the protected period shall not result in sporting sanctions. Disciplinary measures may, however, be imposed outside the protected period for failure to give notice of termination within 15 days of the last official match of the season (including national cups) of the club with which the player is registered. The protected period starts again when, while renewing the contract, the duration of the previous contract is extended.
FIFA RSTP 2025 (interim)
Art. 17 (3)
In addition to the obligation to pay compensation, sporting sanctions shall also be imposed on any player found to be in breach of contract during the protected period. This sanction shall be a four-month restriction on playing in official matches. In the case of aggravating circumstances, the restriction shall last six months. These sporting sanctions shall take effect immediately once the player has been notified of the relevant decision. The sporting sanctions shall remain suspended in the period between the last official match of the season and the first official match of the next season, in both cases including national cups and international championships for clubs. This suspension of the sporting sanctions shall, however, not be applicable if the player is an established member of the representative team of the association he is eligible to represent, and the association concerned is participating in the final competition of an international tournament in the period between the last match and the first match of the next season. Unilateral breach without just cause or sporting just cause after the protected period shall not result in sporting sanctions. Disciplinary measures may, however, be imposed outside the protected period for failure to give notice of termination within 15 days of the last official match of the season (including national cups) of the club with which the player is registered. The protected period starts again when, while renewing the contract, the duration of the previous contract is extended.
FIFA RSTP January 2027
Art. 17 (12)
Sporting sanctions against players
A sporting sanction shall be imposed on any player found to be in breach of contract during the protected period. This sanction shall be a four-month restriction on playing in official matches, and it shall take effect immediately once the player has been notified of the relevant decision. In the case of aggravating circumstances, the restriction shall last six months. The sporting sanction shall remain suspended in the period between the last official match of the season and the first official match of the next season, in both cases including national cups and international championships for clubs. This suspension of sporting sanctions shall, however, not be applicable if the player is an established member of the representative team of the association they are eligible to represent, and the association concerned is participating in the final competition of an international tournament in the period between the last official match of the season and the first official match of the next season.
Comment:
Most of the changes in the provisions on sporting sanctions that can be imposed on players are structural, while the core remains. However, it is worth noting that while under the previous regulations, players could be sanctioned if they did not meet the condition of notifying the club of dismissal 15 days before the dismissal was given, under the new FIFA RSTP, a player can only be sanctioned if he violates the rules within the protected period.
Other amendments
In addition to the above points, according to the new FIFA RSTP Art. 18 (2), clubs that have coached a player under the age of 18 may, under certain conditions, enter into contracts of up to five years (compared to three years in the current FIFA RSTP.
In the case of an international transfer where the player's contract had been unilaterally terminated by one of the parties, the starting point after the 2024 version of the FIFA RSTP was that before an International Transfer Certificate (ITC) could be issued, FIFA would make an assessment of whether the termination met the just cause conditions. This was one of the points that the European Court of Justice criticized in the Diarra case, and has now been removed in the new FIFA RSTP, which in Art. 9 (1) states that an "ITC shall be issued free of charge without any conditions or time limit".
Changes to FIFA RSTP and consequences for national football associations
Working relationships between football clubs and players are primarily regulated by the national football associations’ transfer regulations and standard contracts for professional players, within the framework set by the Working Environment Act. Some of the changes in FIFA RSTP suggest that the national football associations should adopt similar changes to their transfer regulations and to the standard contracts.
FIFA RSTP's regulations on working relationships between clubs and players do not necessarily regulate the relationship between club and player directly, but provide guidelines on what national associations must implement in their regulations. In practice, FIFA's judicial bodies will also use FIFA RSTP as a basis when dealing with disputes between clubs and players, typically in international disputes. The introductory provisions of the new FIFA RSTP regulate the obligations of national associations to implement the FIFA RSTP in their own regulations.
New FIFA RSTP p. 17:
«b) Each association shall include in its regulations appropriate means to protect contractual stability, paying due respect to mandatory national law and collective bargaining agreements. In particular, the following principles must be considered:
– article 13: the principle that contracts must be respected;
– article 14: the principle that contracts may be terminated by either party without consequences where there is just cause;
– article 15: the principle that contracts may be terminated by professionals with sporting just cause;
– article 16: the principle that contracts cannot be terminated during a competition period;
– article 17 paragraph 1: the principle that in the event of termination of contract without just cause, compensation shall be payable and that such compensation may be stipulated in the contract;
– article 17 paragraphs 10-12: the principle that in the event of termination of contract without just cause, sporting sanctions shall be imposed on the party in breach.»
In other words, the national football association is obliged to implement rules that ensure stability in the contractual relationship between club and player. There is no obligation to include FIFA's wording or model in their own regulations, but the national associations must have provisions that ensure stability in the contractual relationship between club and player in line with the principles set out in the relevant provisions of the FIFA RSTP.
Firstly, the national football association is obliged to have provisions that ensure that the contract can only be terminated by some of the parties where there is just cause, or sporting just cause, and that the party that has breached the contract can be sanctioned.
Furthermore, it is important to note that Art. 17 (1), the provision that the parties should agree on the financial compensation to be paid in the event of a breach of contract, is specifically mentioned, so that national federations should implement provisions that ensure that the parties can pre-agree on the financial compensation to be paid in the event of a breach of contract.
Furthermore, Art. 21bis, a player's right to a share of the transfer fee, regulates the relationship between club and player directly, where an international transfer is carried out. In addition to the minimum provision that players who earn less than USD 150,000 per year are entitled to 5% of the transfer fee, the provision further suggests that a provision should be included regarding the player's right to a share of future transfer fees. This should be implemented in standard contracts.
Summary
With the 2027 edition of the FIFA RSTP, FIFA, in collaboration with representatives from the European Union, UEFA clubs and players, has introduced a new transfer system that takes into account the main challenges pointed out by the CJEU in the Diarra case.
The terms for unilaterally terminating the contract have not been significantly changed, but the wording codifies the practice of FIFA DRC and CAS that a contract can be unilaterally terminated if it is unreasonable to expect that the employment relationship between the parties will continue. Furthermore, the new FIFA RSTP stipulates that a club and player, upon signing a contract, should pre-agree on the financial compensation to be paid if one of the parties breaches the contract. If there is no pre-agreed compensation, it is proposed that the injured party claiming compensation must present evidence to a greater extent of the financial loss caused by the breach of contract. The new FIFA RSTP also proposes that players will be entitled to a share of future transfer fees, and the system of sporting sanctions will be continued, in a somewhat more concrete form.
The new FIFA RSTP will make it necessary for football associations to change their rules and standard contracts, and for clubs and players to take into account the revised rules when entering into an employment relationship.
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