Bringing the relationship between a club and a professional player to an end before its term is, in practice, a step with serious consequences both in sporting and in financial terms. The Regulations on the Status and Transfers of Professional Football Players afford the parties the possibility of unilateral termination on two separate bases: the occurrence of the special conditions agreed in the contract, and the breach of the provisions of the contract by the other party. In both cases the party concerned may terminate the contract and claim compensation for the loss it has suffered.
In this note we examine the routes by which a contract registered with the TFF may be brought to an end, the grounds of termination on which the club and the player may rely, the prescribed time limits, and the form to be followed for a declaration of termination to acquire validity.
Special Termination Conditions Included in the Contract
The parties may include in the contract they register with the TFF special provisions giving rise to a right of termination. The example most frequently encountered in practice is the power of termination granted to the player and tied to the possibility of the club being relegated. Where the situation provided for in the contract occurs, the player may bring the relationship to an end unilaterally, without paying compensation and on the basis of just cause.
Similar provisions are also encountered in the contracts of foreign players. For players transferring to clubs in the upper reaches of the league, the team’s failure to qualify for European competitions is frequently drafted as a special ground of termination.
Such clauses need not be framed for the benefit of the player alone; they may also be drafted in favour of the club. For example, a club whose revenues fall markedly as a result of relegation to a lower division may not wish to continue with high-cost players. Against such a possibility, a special condition may be added to the contract granting the club a power of termination in the event that the team is relegated.
When the agreed condition occurs, the right of termination is not deemed to have been exercised automatically. The party concerned must give notice that it has brought the contract to an end by a notice sent through a notary jointly to the other party and to the TFF.
The situations relating to the bringing of the contract to an end may generally be grouped under three headings.
Termination by Mutual Agreement
The club and the player may bring the contract to an end at any time by an agreement on which they settle. Parting ways by agreement on all matters is a solution frequently resorted to in the football market.
However, for that agreement to be entered in the Federation’s records, the documents expressly specified in Article 26 of the PFTT must be submitted to the TFF. On the club’s side, a notarised signature circular for the persons authorised to represent it is required. On the player’s side, a notarised declaration of signature drawn up no earlier than 30 days before the date of signature and containing a statement that it is to be used in the termination agreement to be signed with the club in question is required. If the agreement has been signed by a representative, the representative’s declaration of signature must also be submitted to the Federation together with the other documents.
If these documents are not completed, the mutual termination cannot be entered in the TFF records. As a result, it also becomes impossible for the player to sign a contract with a new club.
The Club’s Unilateral Right of Termination
Where the situations enumerated in Article 27 of the PFTT arise, the club may terminate the contract unilaterally. Those situations are as follows:
- That the player has received a final ban from at least 4 official matches on account of conduct contrary to the Regulations on Players’ Agents,
- That the player is in serious breach of the obligations enumerated in Article 25 of the Regulations,
- That the player’s illness or period of convalescence arising outside football activity exceeds six months,
- That the player has been made subject to a final sanction of deprivation of rights or of a ban from matches for at least six months.
Where the player falls into default in performing the undertakings arising from the contract, the club may not make a declaration of termination directly. A club wishing to bring the contract to an end must, by a notice served on the player, call upon him to perform his undertaking within an appropriate period. If performance does not take place within the period allowed, the club may exercise its right of termination only within 7 days of the expiry of that period of grace.
The Player’s Unilateral Right of Termination
The unilateral power of termination granted to the player is regulated in Article 28 of the PFTT, which sets out together the grounds that may be relied upon and the procedure to be followed.
Where Remuneration Is Not Paid
Where the club falls into default in its obligation to pay remuneration, the first step for a player wishing to bring the contract to an end must be a warning. The player must, by a notice sent through a notary to his club and, for information, to the TFF, demand payment of his remuneration within 30 days. If the club fails to make payment despite that period, the player may terminate his contract only within 7 days of the expiry of the period of grace.
Where Other Undertakings Are Not Performed
The club’s failure to perform undertakings arising from the contract other than remuneration also gives the player the possibility of termination. In that case too, the player must send a notice to the club calling for the undertaking to be performed within an appropriate period. If the club does not meet its obligation despite the period allowed, the player may proceed to terminate only within 7 days of the end of the period of grace. The time limits specified here may not be varied to the player’s detriment.
TFF Notification and When Time Starts to Run
The Federation transmits the notice reaching it to the club by fax or otherwise within 7 days at the latest from the date of service. The time limits above start to run from the date of service of whichever of the TFF notification and the notarial warning was served on the club earlier. In addition, the TFF sends the document showing the date of its notification to the club to the player who issued the notice or to his representative.
Sporting Just Cause
A professional player who has reached the age of 23 may become entitled to terminate his contract on sporting just cause if, when the season has been completed, he has appeared in fewer than 10% of the official matches played by his club. A termination of this nature is not automatically regarded as valid; the player’s situation and the circumstances of the concrete case are assessed together.
A termination relying on sporting just cause must be effected within 15 days of the club’s last match in the season in question.
Common Rules on the Form of Termination
The bringing of the contract to an end is subject to a particular form, without distinction between the parties. The party exercising the power of termination must set out its declaration in a notice served through a notary and transmit a copy of that notice to the Federation for information.
When the TFF receives the copies of the notice, it enters the termination in its records and informs the parties of the step taken. The player’s ability to move to another club following termination is subject to an additional condition: the club to which he is to transfer must sign an undertaking showing that it accepts joint and several liability for the legal and sporting penal consequences of the termination.
Independent Legal Assessment
A significant proportion of termination disputes in player contracts arise not from the merits of the ground but from the procedure being overlooked. A termination effected without a period of grace having been allowed may be characterised as unjust termination, however strong the ground. In the same way, missing the 7-day window allowed after the expiry of the period of grace results in the right of termination becoming unexercisable.
The manner in which special conditions added to the contract are drafted also calls for particular care. Situations such as relegation or failure to qualify for the European cups become open to argument where the triggering event and the period for exercising the right are not clearly written out. In a concrete file, the following headings should be prioritised:
- Determining at the outset which subparagraph of Article 27 or 28 of the PFTT the ground of termination corresponds to
- Ensuring that the content of the notice sets out the undertaking demanded and the period allowed so as to leave no room for doubt
- Calendaring the 7-day termination period following the period of grace and documenting the dates of service
- Establishing which of the TFF notification and the notarial warning was served earlier
- In mutual terminations, completing in full the registration requirements such as the signature circular and the declaration of signature
- In sporting just cause, establishing the 10% threshold from official match records and observing the 15-day period
Independent Legal provides advisory services in the drafting of professional player contracts, the management of the warning and notice process relating to termination, and the pursuit of claims for payment and compensation arising from that relationship.