FIFA bans third-party ownership of players
By Leonardo Neri Candido de Azevedo
Recently, FIFA has decided to intervene in the field of third-party ownership of players by ruling that only clubs are entitled to own the economic rights of players.
This decision will have a major impact on how Brazilian sports entities hire their players because it will have an effect on the acquisition of players’ economic rights. These rights are often traded with third parties, who own a certain stake in a player and pay the agreed price to the club.
In Europe, on the other hand, the practice that prevails today is one by which most entities today are able to manage themselves with their own resources or are managed by a single owner.
The practical impact of the new model of trading players will cause the prices of the economic rights of players located in South America to drop. Technically, this will encourage transactions with key European entities due to a possible deflation of the market, while giving players more independence, as their economic rights will no longer be divided between investors.
As a result, clubs will be forced to put into practice the idea of professionalizing sports management as the key instrument for associations to learn new ways to handle their finances. Soccer should now be seen by the entities as a product with potential value-added that uses marketing and asset management strategies with the ultimate purpose of making profits for better development.