New FIFA RSTP Regulations & Football Transfers: Legal Insights with Dr. Jan Räker

Recent updates and changes stemming from the ruling in the Lassana Diarra case have tested the robustness of the FIFA Regulations on the Status and Transfer of Players (RSTP), forcing clubs and legal professionals to review the wording of their contracts and buyout clauses. To analyze these issues, Sports Law Hub recently hosted a masterclass with Dr. Jan Räker, Director of Operations and Infrastructure at a German football club, Court of Arbitration for Sport (CAS / TAS) arbitrator since 2015—specializing primarily in football cases—and former Legal Director at VfB Stuttgart and Hamburger SV.

In this article, we review the main takeaways from the presentation in which Räker outlined the regulatory framework of international transfers, detailing the distinction between release clauses and buyout clauses, the exercise of the transfer right, and the limitations imposed by Articles 5, 17, 18.4, and 21 of the regulations.

Legal framework of the new FIFA RSTP and the employment contract

As Dr. Jan Räker argues, the starting point of every transfer is the employment contract between the player and their club of origin. Unlike an ordinary employment contract, professional football is governed by the principle of contractual stability: if players were free to leave at any time, the transfer market and transfer compensation would disappear.

This principle generates reciprocal obligations (the provision of sporting services and assignment of image rights in exchange for a salary and benefits such as housing or transportation), but it clashes with national laws when attempting to terminate a contract unilaterally (without just cause):

• In systems like Germany: National law considers unilateral termination without cause to be null and void, requiring the contract to remain in force.
• Under Swiss Law (the reference framework for the FIFA RSTP): Termination does end the contract, but it immediately generates an obligation to pay compensation for damages to the club of origin (governed by Article 17 of the RSTP).

Therefore, unless an agreed clause is executed, mutual agreement between clubs and player remains the only regular way to terminate a contract peacefully and without the risk of litigation.

Player registration and the ‘transfer right’ according to FIFA

Article 5 of the FIFA RSTP requires that a player may only be registered with one club at a time, with the employment contract being the essential basis for that registration. From this requirement derives the definition of the transfer right:

«The right of a club to make its decision to allow a player to move to another club dependent on its own consent, which it may grant or withhold at its sole discretion.»

This right ceases to exist when the employment contract expires or when a party exercises unilateral termination for just cause; the club lacks a transfer right and cannot claim transfer compensation. On the other hand, the club’s discretion is limited if release or buyout clauses have been previously agreed upon in the employment contract.

Structure of a player transfer agreement

To formalize the transfer of a player from Club A to Club B, the transfer agreement must encompass the following legal acts:

• Contractual termination: The agreed termination of the employment contract between the selling club and the player.
• New employment contract: The signing of the new employment contract between the player and the buying club.
• Transfer of registration: The assignment of the federative rights and registration in favor of the new club, along with the buyer’s obligation to pay the transfer fee.

Release clauses vs. Buyout clauses

The legal differences and tax risks between a buyout clause and a release clause are decisive:

• Release clause: Obligates the selling club to accept a transfer offer from another club if it meets the agreed conditions (amount, dates, payment terms, or type of clubs). If the criteria are met, the selling club is required to accept and sign the transfer agreement.
• Buyout clause: Allows the player to unilaterally terminate their contract by paying the agreed amount. The payment obligation is personal to the player and terminates the contract without strictly requiring an agreement between the clubs.
• Tax contingency of the buyout clause: If the new club pays the amount on behalf of the player, tax authorities in certain countries may treat that payment as taxable salary for the player. This can up to double the financial cost of the transaction due to taxes, which is why clubs prefer to execute a release clause or sign a direct transfer agreement.

Conditions prohibited by the RSTP (Art. 18.4) and Solidarity Mechanism (Art. 21)

The FIFA Transfer Regulations include mandatory rules that determine whether a contract is valid:

• Medical examinations and visas (Art. 18.4 RSTP): FIFA expressly prohibits making the validity of a contract conditional upon passing a medical exam or obtaining a work permit. Medical check-ups must take place prior to signing binding contracts.
• Recommended inter-contractual conditions: It is advisable to make the effectiveness of each contract dependent on the validity of the other two agreements in the transaction to avoid legal vacuums.
• Solidarity contribution (Art. 21 RSTP): 5% of any transfer compensation must mandatorily be distributed among the clubs that trained the player between the ages of 12 and 23, without the parties being able to exclude this rule.

Master the New FIFA RSTP Regulations: Access the Full Masterclass Recording Do you want to learn about the exact impact of the Diarra case on the modifications to the FIFA RSTP, see how these clauses are drafted step-by-step, and access the complete practical analysis by Dr. Jan Räker? You can purchase on-demand access to the full 1.5-hour recorded session directly on our official course landing page: Standard Rate: 25€ 👉 Click here to access the landing page and purchase your access to the recorded masterclass.