With the opening of the UAEFA registration period on 10 July, the summer transfer window is now in full swing. UAE clubs are among the biggest drivers of international transfer activity across Asia, recording a record 327 incoming transfers in 2024 and USD 62.7m in transfer spending – more than double the previous year.
And while the flurry of football transfer activity brings excitement for fans, the transfer window (legally referred to as a ‘registration period’) remains an area fraught with legal risk for clubs. Although clubs are aware that the use of the FIFA Transfer Matching System (TMS) is mandatory for all transfers – male and female, professional and amateur, international and domestic – some common mistakes persist that can cost clubs both financially and in terms of sporting performance. It is vital, therefore, that clubs receive expert sports legal advice to avoid these pitfalls, protect their interests, and ensure a successful transfer window.
We will run through some of the key points from the FIFA regulations to help your club safely navigate the international transfer market this summer:
Only use a FIFA-licensed Football Agent
If your club is considering using the services of an agent to represent you during a transfer, ensure that the agent holds a valid, up-to-date FIFA Football Agent licence before you sign a representation agreement. Details of the agent and any agent fees must also be declared in TMS. Failure can result in sanctions being imposed by FIFA.
Avoid TPO when drafting agreements
Art. 18ter of the FIFA Regulations on the Status and Transfer of Players (RSTP) prohibits third-party ownership (TPO). A ‘third party’ is any party other than:
(a) The two clubs transferring the player from one to the other.
(b) Any club with which the player was previously registered; and
(c) The player himself.
Examples of third parties include agents, companies, and investment funds.
Art. 18ter bans agreements which assign to a third party:
- any entitlement to compensation payable in relation to the future transfer of a player; and/or
- any rights in relation to a future transfer or transfer compensation.
One example of a prohibited TPO agreement would be if a club contracts with an agent and promises him a percentage of a future transfer fee.
Clubs therefore need to exercise extreme caution in ensuring that the financial provisions in their agreements are compliant and properly drafted. Failure to do so can result in sizeable fines and other sanctions imposed by the FIFA Disciplinary Committee.
Sell-on fees and player percentages
It is not considered TPO, however, for a club to assign a percentage of a future transfer fee to a club with which the player was previously registered (commonly known as a ‘sell-on fee’). Likewise, it is legal for clubs to agree for a percentage of the player’s own future transfer fee to be assigned to the player being transferred. Again: good drafting is key to ensure your clubs stays onside with the RSTP.
Check TMS daily – and process transfers early
FIFA regulations require clubs to check TMS at regular intervals – best practice is to check at least once a day to avoid any backlog of tasks.
Transfer deadline day: every second counts!
An inside tip: FIFA regulations permit the registration of players after the closure of the transfer window so long as the International Transfer Certificate (ITC) was requested prior to closure. Therefore, to give your club the best chance of avoiding any deadline day issues, transfers should be entered in TMS as early as possible to allow sufficient time for validation and the processing of the ITC request before the window closes. Once the ITC request is made in time, the rest of the process can complete validly after deadline day.
Check the ITC status before fielding your new player
Clubs may not field a new player until he has been registered – and FAs may not register internationally transferred players until they have firstly confirmed receipt of the ITC in TMS. However, FAs occasionally make mistakes in this regard and wrongly inform clubs that the player has been validly registered even though the ITC process has not completed. This mistaken information can lead the club to field the player before he has been validly registered, exposing both the club and FA to FIFA sanctions.
Thankfully, however, clubs can take a simple precaution to protect themselves: by checking the transfer status in TMS. For permanent transfers, ensure the TMS status is “Closed” or “Closed – awaiting payments”. For loans, make sure it reads “On loan – awaiting conclusion” or “On loan – awaiting payments”. If your transfer has one of these statuses, this indicates that the registration has been validly transferred.
However, if the transfer is still in status “Awaiting ITC receipt”, then it means that no valid registration can have taken place yet – even if the FA claims that it has. Only after:
(a) The ITC has been confirmed as received in TMS (as the first step); and
(b) The player has been registered with your FA (as the second step),
is your club allowed to field the new player.
Fielding the new player: the ‘3/2 rule’
As a general rule, in any given season, players may only register for a maximum of three (3) clubs and play official matches for two (2) of those clubs. Clubs should therefore do their due diligence on the number of clubs with which their new player has already been registered for this season – and for how many clubs was he fielded in ‘official matches’ (which include league and cup matches, but exclude friendlies and trials). This tends to be more of a live concern during the mid-season registration period (aka January transfer window).
Pay transfer fees (and upload the proof) on time
An obvious one perhaps, but failure to make payments on time – such as transfer fees and salaries – can expose clubs to some unexpectedly serious consequences. Sanctions include loss of a club license (preventing the club from competing in their national top division league and even AFC club competitions) and transfer bans (following the enforcement of a ruling by the FIFA Football Tribunal). Clubs must also upload proofs of transfer fee payments in TMS on time: failure in this regard typically results in fines.
Need to speak to a sports law expert? Contact the Managing Director, Barry Lysaght, to set up a consultation: He has over 13 years of senior sports legal experience at major bodies like FIFA, AFC, and the Saudi Arabian Football Federation.
W: https://www.lysaghtsports.com
Disclaimer: This article provides general information on sports regulations and is not intended as legal advice. For advice on specific matters, contact Lysaght Sports directly.
