Transfer Agreements

Who pays the agent in a transfer deal?

New FIFA regulations require agents to be paid by the client they represent (player or club). Dual representation is allowed only in limited cases (player + buying club).

Can a transfer fee be paid in installments?

Yes, paying in installments is very common. However, the selling club should demand bank guarantees or accelerate clauses in case of default.

What is a "loan with obligation to buy"?

It's a loan deal where the transfer becomes permanent automatically if certain conditions are met (e.g., player plays 10 matches or club avoids relegation).

Are swap deals legal?

Yes, player exchange deals are legal, but for accounting and solidarity contribution purposes, a specific value must be assigned to each player involved.

Reading Time

3 min

Published

...

A Transfer Agreement is the central document in sports law that formalizes the move of a professional athlete from one club to another. It is a tripartite (often quadripartite - including the agent) transaction that regulates not only the payment of the Transfer Fee but also future rights. Modern transfers involve complex clauses: performance bonuses (Add-ons), sell-on clauses, and solidarity payments. An incorrectly drafted transfer agreement can lead to financial loss for the club or a career dead-end for the athlete. Our service ensures the legal cleanliness of the transfer deal, risk insurance, and full compliance with FIFA/UEFA (or other federation) regulations.

What Does the Transfer Agreements Service Cover?

The service covers the entire transfer process cycle:

  • Contract Drafting: Preparing the transfer agreement detailing the payment schedule (tranched payments), bank guarantees, and currency exchange risks.
  • Sell-on Clause and Buy-back Option: Formulating clauses that give the selling club the right to receive a percentage of the player's future sale or to buy the player back at a fixed price.
  • Conditional Bonuses (Add-ons): Legally defining bonuses (e.g., if the player scores 15 goals, or the club qualifies for the Champions League).
  • Solidarity and Training Compensation: Calculating and specifying in the contract which party (buyer or seller) pays these fees.
  • TMS Registration: Legal oversight of transfer registration in the FIFA Transfer Matching System.

Real-World Situations When You Need This Service

The following difficulties are common in transfer negotiations:

  • Payment Delay: The buying club paid the first installment but is delaying the second. The lawyer prepares a claim for FIFA and demands penalties.
  • Failed Medical: The transfer was agreed upon, but the player failed the medical examination. Managing the contract cancellation procedure without financial loss is required.
  • Loan with Obligation to Buy: Clubs agree on a loan that turns into a full transfer upon meeting certain conditions (e.g., number of matches). Precise wording of conditions is critical.
  • International Sanctions: Transfer to a country or club with banking restrictions. Legal assessment of alternative payment methods is needed.

Georgian Legal Framework

Transfer relations are regulated by the "Civil Code" (sale/assignment of rights), but sports regulations take precedence. In football, this is FIFA RSTP and GFF regulations. It is important to know that transfer disputes are usually not heard in state courts; their jurisdiction belongs to sports institutions (FIFA, CAS). Therefore, correctly including an arbitration clause (Jurisdiction clause) in the agreement is essential.

Process: How a Specialist Works

Transfer deal support involves:

  1. Due Diligence: Checking the solvency of the partner club and the player's status (e.g., existing suspensions).
  2. Negotiation: Agreeing on the financial structure and payment guarantees.
  3. Finalization: Preparing the document package and uploading it to the registration system.

Why Legal.ge?

Lawyers represented on Legal.ge have experience in handling million-dollar transfer deals. We understand the stress of Deadline Day and are ready for operational work. With our help, your transfer deal will be transparent, secure, and profitable.

Updated: ...

Specialists for this service

Loading...