Football Contracts: An Overview And Discourse Of Implications Of Long-Term Football Contracts.

INTRODUCTION:

Football as a sport has been transformed lately far beyond activities for mere pleasure, pastime and entertainment into a highly commercialized and lucrative industry. It has generated and continues to generate employment opportunities to millions of teeming youths globally. The football sector has also become an income generating line for governments across the globe. Owing to the economic advantage in the industry, both the players and the stakeholders in the business have come to realize the need to have a well cut out agreement upon which relationships are built. This is very important so as to ensure that parties to such contract are aware of the scope of their rights and obligations.

In football, a player's contract is more than just an agreement between the player and the club; such contracts are legally binding documents that can have profound effects on both parties, especially when it involves a long-term deal. Football contracts must be in writing and be duly signed by both parties, with dates and places mentioned in the contracts, and each party must receive a copy of the contract. A copy is also to be forwarded to the Professional League and/or member Association for registration according to the provisions of the competent regulatory sport federation.¹

Apart from some of the most controversial contracts of some of the World's finest Footballers such as a striker who has a clause in his football contract surrounding his conduct on the field and thus, has a "good conduct" clause inserted in his contract which would see him leave the Club on grounds of bad behavior,² one of the most discussed contracts in recent years is the signing of a nine-and-a-half-year contract by one of the most famous English Football clubs.³ This popular Striker, widely regarded as one of the most promising talents in World Football, signed a five-year Contract in 2022.⁴ However, most recently in 2024, he entered into an extraordinary nine-and-a-half-year Contract with an English club, making it the longest contract in the English Premier League history.⁵ The legal implications would have far-reaching effects on both the Player and the Club, both in terms of contract law and its broader consequences on player mobility, financial management and regulatory adherence. This Article provides an overview of football contracts and discusses the implications of long-term football contracts.

OVERVIEW OF A FOOTBALL CONTRACT

The Black's Law Dictionary, 10^th Edition defines a Contract as:

"An agreement between two or more parties creating obligations that are enforceable or otherwise recognizable at law."

Football contract is a written document that contains a binding agreement between a football player and a football club. Football contracts are common with young, high-potential players or star players. Such contracts must be in compliance with the relevant labour laws within the applicable jurisdiction. A football contract must set out in clear terms the various rights and obligations for both the player and the club, which metamorphose into the relationship of an employer/employee.

SOME ESSENTIALS AND KEY CLAUSES OF A FOOTBALL CONTRACT:⁶

• CONTRACT DURATION: A football contract must be specific with respect to the duration of the agreement. In other words, the commencement and termination dates must be contained in the contract. Football contracts do not run in perpetuity. Parties are also at liberty to insert an extension clause, which can extend duration of the contract between the player and the employers.
  
  Longer-term agreements have, however, become more common, with options in the contract agreement to stay for additional months should they wish, providing a framework for future negotiations and Agreements.⁷

• WAGES AND FINANCIAL COMPENSATION: A football contract contains the salary or financial reward for the player. It also provides for the mode of payment, whether weekly, bi-weekly, monthly or annually, as the case may be. Owing to the dynamic nature of the economy, the contract can also provide for salary review and adjustment, which often increases over time or with performance and other bonuses such as a signing bonus. A signing bonus is a lump sum paid when the contract is signed. Loyalty bonuses may also be paid if the player completes certain years at the club. There are also Performance incentives for goals, assists, appearances, clean sheets, etc.

• IMAGE RIGHTS AND COMMERCIAL TERMS: This clause provides for the players to negotiate terms and conditions around how their image is used in advertising and merchandising during the pendency of the contract. Image rights provide players with an opportunity to leverage their popularity and marketability, thereby increasing their earning potential.

• TRANSFER CLAUSES, BUY-OUT CLAUSE, PRE-EMPTION CLAUSE AND RELEASE CLAUSE: Transfer and Release clauses provide for the modalities involved in the movement of players from one club to another. Such clauses are contained in most Premier League contracts thereby allowing players to enter into another contract with a different club other than the initial one. The pre-emption clause on the other hand provides for the clubs to buy their former player from another club.

• INJURY AND INSURANCE PROVISIONS: This clause provides for the medical needs of players after injury sustained during the course of play. In most cases, the insurance policy extends to the family members or dependants of the players.

• MEDICAL PROVISIONS: Football contracts also provide for the health care of the players when they are sick. In other words, the ill health may not necessarily be sustained in the field of play. There are usually designated hospitals which provides medical services to the players, including their families as the case may be.

• TERMINATION CLAUSES: A Termination clause states the circumstances under which a football contract may be terminated. Such conditions could be a breach of contract, transfers, or mutual agreement between the player and the club.

• DISPUTE RESOLUTION CLAUSE: This clause provides a forum for parties to resolve issues that may arise within the period of the contract to prevent unnecessary litigation.

A football contract is very essential for both the football player and the football club as it give parties the legal right to enforce terms agreed by parties and other reasons highlighted below:

For the football club:

1. It allows the club to retain talent and protect asset value in the transfer market.
2. It prevents the club from losing players on free transfers.

• It allows the club to build teams with long-term planning.

For Players:

• Provides financial stability and career security.
• Opportunity for development under stable conditions.

• Enhances personal brand with a settled club identity.

• Legal and Regulatory Framework.

Football contracts though very helpful, have short falls such as:

• If the player underperforms or becomes injury-prone, the contract becomes a financial liability for the club.
• A player may miss opportunities to move to bigger clubs or renegotiate higher wages if their performance improves drastically.

LEGAL IMPLICATIONS OF THE CONTRACT

1. CONTRACT LENGTH AND LEGAL FRAMEWORK: Long term Football Contract is highly unusual in football, as most Players' Contracts are typically for four to five years, with an option of an additional year. From a legal perspective, however, the first question would be whether such an extended commitment is permissible under local and international regulations governing football contracts. The main governing bodies, such as Fédération Internationale de Football Association (FIFA) and Union of European Football Associations (UEFA), allow clubs to negotiate the length of a player's contract within a framework of fairness and financial stability.⁸
2. IMPACT ON PLAYER'S AUTONOMY: The most immediate legal concern with a long-term contract is the extent and scope of a player's independence. While a player in a long-term football contract would have the right to terminate the contract under certain circumstances (such as mutual agreement, breach of terms or if a "release clause" was triggered), such a long-term agreement could be seen as restrictive with respect to his career choices and prospects. Many players usually negotiate shorter contracts with clauses that allow for flexibility, thereby enabling them to move and transit to other Clubs if such circumstances arise, whether for financial reasons, career aspirations or personal preferences. A long-term contract could restrict a player's ability to move, as he would be bound to the terms and conditions stipulated in the Agreement for a significant period, especially if the contract does not include any release clause, which ultimately means that any of such clauses in his previous contracts will be rendered inoperative.
3. FINANCIAL IMPLICATIONS: A nine-and-a-half-year contract would likely be structured with substantial financial benefits, including a higher wage and potentially substantial signing bonuses. Although it has been understood that wages involved in this type of contract are within the region of Five Hundred Thousand Pounds (£500,000) per week.⁹ The compensation, however, would have to be sustainable, especially considering Financial Fair Play (FFP) Regulations as provided in article 60 of UEFA's FFP Rules, clubs are expected in this instance to balance their income and expenditure.¹⁰
4. AMORTISATION OF TRANSFER FEE: Transfer fees in football are typically amortised over the duration of the contract.¹¹ In the case of a nine-and-a-half-year contract, the transfer fee cost would be spread over a much longer period compared to the usual 5-year contract duration. For example, if the transfer fee were £100 million, under a standard 5-year contract, the club would amortise £20 million each year. In the case of a nine-and-a-half-year deal, this annual amount would be reduced to approximately £11.1 million, potentially easing the financial burden for the Club, while allowing for greater flexibility in their other spending.
5. PLAYER'S POTENTIAL EARNINGS: The wage over a 9-and-a-half-year period would likely increase with inflation and the player's stature in the team, but the duration of the contract would also have an impact on his earning potential. The longer the contract, the more security such a player would have in terms of his income, which could be crucial for his personal financial planning. However, he could also be at risk of receiving below-market value wages in the later years if his performance or market value decreases drastically during the contract period.
6. POTENTIAL RELEASE CLAUSE AND BUY-OUT CLAUSES: One of the key considerations in a long-term Football contract would be whether it would contain a release clause or a buy-out clause, enabling either the Player or the Club to terminate the contract earlier than the stipulated duration under specific and certain conditions. For example, if the Player's performance exceeded expectations, he could have negotiated a clause that would allow him to leave for a fixed fee, or if the Club wanted to move him on, they would have to pay a certain amount to release him from the contract.
7. IMPACT ON PLAYER MOBILITY AND CAREER TRAJECTORY: Committing to a nine-and-a-half-year deal could have significant implications on a player's career trajectory. While some Footballers at the top of their game often want to secure long-term deals for financial security, the majority do not stay with a single club for such long periods. Players may seek new challenges or move to clubs in different leagues as their career progresses. A nine-and-a-half-year contract might limit a player's ability to pursue such opportunities, unless he were to negotiate frequent release clauses or "escape" clauses based on performance metrics.
   
   Moreover, players at the height of their abilities sometimes see their market value rise exponentially within the first few years of their contracts. Some players' performance significantly outgrow the terms of their contracts, the parties to the contract could find themselves in an imbalanced relationship. They could be underpaid relative to their value in the transfer market, while the club may struggle to balance their wage demands with broader squad requirements.
8. IMPACT OF LONG-TERM CONTRACTS ON CLUBS AND THEIR SQUAD MANAGEMENT: A nine-year contract would present both opportunities and challenges. The club would gain stability and certainty with the player in their squad, allowing them to build their attacking strategy around him over a long period. However, the club would also face the challenge of managing a player's long-term welfare. Footballers' performances can fluctuate over time, and players often experience injuries or a loss of form. A nine-year contract could lead to a situation where the club is financially committed to a player who may not perform at the same level in the later years of the contract, thus limiting their flexibility in the transfer market.
   
   Moreover, such a club would need to ensure that their broader financial operations align with such a commitment, especially as the club is constantly competing at the highest levels in football competitions. If a Player were to have a long-term contract, it would tie up a significant portion of the club's wage budget, which could affect their ability to sign other star Players or adjust their squad according to tactical needs.

REGULATORY CONCERNS AND TRANSFER RULES:

From a regulatory perspective, a nine-year contract would likely attract scrutiny from Football's governing bodies. Both FIFA and UEFA have established rules concerning contracts and Player transfers, including specific provisions around Player loans and transfers between clubs. A contract of such a length could potentially contravene Regulations in certain countries or lead to additional oversight by Regulators. For example, Article 18.2 of the FIFA Regulation on the Status and Transfer of players which has been adopted by UEFA states as follows: "The minimum length of a contract shall be from its effective date until the end of the season, while the maximum length shall be five years."¹²

Furthermore, under UEFA's Financial Fair Play (FFP) Rules, long-term contracts can sometimes be seen as a means of circumventing spending limits, especially when clubs engage in heavy transfer market activity.¹³ Regulators would need to assess whether a 9-year contract serves as a genuine financial commitment or as an attempt to circumvent FFP Rules.

THE EVOLUTION OF PLAYER CONTRACTS IN FOOTBALL:

The legal precedent set by long-term contracts in football is still evolving. The trend towards shorter contracts with the flexibility to extend or renegotiate terms is more common in the modern era. However, given the substantial investments involved and the increasing commercialization of football, we may see more long-term contracts in the future. Such contracts could fundamentally change how clubs operate within the global football market.

CONCLUSION:

A long-term contract would have several legal, financial, and practical implications for both the Player and the club. While offering substantial financial security to such player , it would also raise concerns regarding his mobility, the Club's ability to manage its wage structure, and the long-term sustainability of the deal. As football continues to evolve, such long-term contracts could become more common, but there is a need for such contracts to be carefully structured to avoid potential pitfalls, both for the Player and the Club. Ultimately, a nine-year deal would offer stability, but it would also require both parties to navigate a complex legal and financial landscape to ensure that the contract remains mutually beneficial over the long term.

Footnotes

1. Article 5 (1) of the FIFA Regulations For the Status and Transfer of Players (RSTP)

2. view link

3. view link

f="https://supersport.com/football/premier-league/news/68a8dd89-0f1d-4e23-8391-f0effeb8ae58/haaland-signs-new-man-city-deal-until-2034" target="_blank">view link

5. view link Accessed 20th April 2025

6. view link Accessed 23rd March 2025

7. view link Accessed 2^nd May 2025.

8. FIFA Regulation on the Status and Transfer of players

UEFA's Financial Fair Play (FFP) Rules

9. view link Accessed 2^nd May 2025

10. UEFA's FFP Rules

11. view link Accessed 2^nd May 2025

12. FIFA Regulation on the Status and Transfer of players

13. UEFA's Financial Fair Play (FFP) Rules

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