Can Clubs Shift The Financial Burden Of FIFA’s Solidarity Contribution For Player Transfers
On 10 November 2021, FIFA published the much anticipated new edition of its commentary on the FIFA Regulations on the Status and Transfer of Players (FIFA RSTP)[1]. Fifteen pages of the new and very comprehensive commentary are dedicated solely to the issue of “solidarity contribution”.
With that in mind, this article addresses a question that has been the subject of multiple cases before the Court of Arbitration for Sport (CAS) and the FIFA Dispute Resolution Chamber (FIFA DRC) over the last twenty years:
Are football clubs involved in a player transfer free to agree on which of the two clubs shall bear the financial burden associated with the solidarity contribution under FIFA RSTP? If so, how can this be achieved?
The article provides guidance to clubs on this question by examining the jurisprudence of CAS and the DRC. Specifically, it looks at:
- The solidarity contribution requirements under FIFA RSTP;
- Different ways clubs have contracted for solidarity payments in the past; and
- Best practice for clubs on allocating the financial burden of solidarity payments.
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- Tags: CAS | CAS Code | Contract Law | Dispute Resolution | FIFA RSTP | Football | Regulation & Governance | Solidarity Contribution | Sports | Swiss Code of Obligations | Transfers
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Written by
Maximilian Wegge
Associate, Martens Lawyers
At the beginning of his legal career, Maximilian Wegge worked at a German commercial law firm in the field of media and entertainment and therefore gained vast experience in the areas of IT, media law and digital business. Since joining the sports law firm Martens Lawyers, Maximilian Wegge has been regularly involved in supporting associations and clubs in sports law matters. In addition, he advises clients in connection with ordinary court and arbitration proceedings in the fields of general civil law as well as corporate and association law.
