Third party transfer ban has made big impact

Every transfer window is different; the one just closed has been unique. Not because of the deals that were done, but because of those which have been blocked. For the first time ever, third parties have been excluded from acquiring players’ economic rights, not just throughout Europe but worldwide.

Fifa circular 1464, imposing the ban, was rushed out just nine days before the window opened, and has had an immediate impact on the market. There are further repercussions to come. Not so much in England, where third party ownership (TPO) has been outlawed since 2008, but in both Spain and Portugal and above all in South America. In Brazil, sports lawyers estimate around 90% of professional players currently have contracts involving third parties — individual businessmen, companies or investment funds.

Fifa had been dithering and prevaricating about TPO for years. New regulations were flagged up for months. A working party was set up to consider options. So there was real surprise when the new regulation — 18ter as it is called — was imposed at such short notice. And contrary to previous assurances, there is no real transitional period. While existing TPO contracts remain in force, new ones can only be agreed up until May 1 and are restricted to 12 months, which makes them of very limited interest to investors.