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FIFA limits player penalty clauses
The International Football Federation (FIFA) announced new amendments to the regulations governing player transfers and contract cancellations, set to take effect in January 2027. These changes aim to reduce contractual disputes between players and clubs. The amendments include clear guidelines for determining compensation amounts when contracts are terminated, calculated based on various criteria such as the remaining contract value, unpaid dues, the player's market value, potential transfer opportunities, and costs associated with signing a replacement. Additionally, the reforms seek to prevent clubs from imposing excessive penalty clauses that could hinder players' desire to transfer, allowing for reasonable conditions aligned with the new standards. If a player terminates their contract and transfers within 45 days to a new club, the new club may face accusations of inciting breach of the previous agreement. The overarching goal of these amendments is to better balance the rights of clubs and players, reduce disputes, and maintain reasonable penalty clauses consistent with market standards.
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