By order of FIFA: contract termination regulations amended after the Alvarez crisis | Goal.com
From the start of next January, FIFA will amend Article 17, the clause that governs contract termination and the ending of contractual relationships.
Once the amendment takes effect, competitions must adapt their contracts to a new model. Under it, the value of a unilateral termination between a player and a club has to sit reasonably in proportion to the circumstances of the deal. The idea is simple: stop either party inflating a figure to block a player's exit.
According to Sport newspaper, the change follows a string of deals that collapsed over sky-high termination clauses, or because clubs simply refused to negotiate the departure of a player who had made clear he wanted out. That is exactly what unfolded this summer between Julian Alvarez and Atletico Madrid.
Reducing disputes between clubs and players over contract termination sits at the heart of the new rule, the sort of clash that defined the Lassana Diarra case.
Players' representatives have thrown their weight behind FIFA's move.
Until now, officials assessed the financial compensation case by case. No set method, no clear criteria on the exact value, and the outcomes swung wildly as a result.
That is why FIFA chose to rewrite the article and make it more transparent, objective and predictable. Both parties can now agree the value of the compensation in the contract, guaranteeing full cover for the damage.
Two scenarios fall under the new regulation: contracts with a termination clause, and contracts without one. Where a clause exists, the compensation is the agreed sum, unless that sum is plainly exaggerated and unfair.
Contracts without a termination clause make things trickier. Here the amount rests on several criteria: the remaining value of the contract, wages owed, the value of the player's services, the loss tied to a possible transfer, the cost of replacing him, and any other proven damages. In both cases, though, the player and the club are entitled to compensation equal to the remaining value of the breached contract.
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