FIFA to make major changes to compensation rules in player contracts

FIFA to make significant amendments to player contract compensation rules

The International Federation of Association Football (FIFA) will amend Article 17, which regulates the procedures for the early buyout and termination of contracts between football players and clubs. According to the publication The Touchline, the new regulations will come into effect on January 1, 2027.

Under the updated rules, clubs will be required to align the buyout clause in contracts with reasonable standards. In other words, the amount for unilateral termination of an agreement between a player and a team must be determined taking into account the actual terms of the contract and the specific situation.

The decision was made because clubs have recently begun to artificially inflate buyout clauses. Currently, to retain their key players, many teams include buyout amounts of up to 1 billion euros in contracts. This complicates a player's transfer to another club and significantly reduces the chances of purchasing teams signing an agreement with them. It is precisely to prevent such artificial barriers that FIFA has decided to change this rule.

A buyout clause, or compensation, is a fixed amount specified in a football player's contract. If this amount is paid and the player himself reaches a personal agreement with another team, his current club loses the right to block the transfer.