Knowledge (XXG)

Third-party ownership in association football

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186:, himself associated with third-party ownership and the companies that invested in players, said: "In England they don't understand it at all. It's easier to buy a player who you are unsure about for £10m if you are sharing the risk with a partner. Now, if the player becomes top-drawer and is sold for £30m, then of course you may feel stupid only to own half. But if the player turns out to be merely average or a failure, if he cannot even be sold, you will say, 'Fantastic, the disaster was not only mine'. That's exactly the way it works." 119:, was acting to ban 'third-party' ownership. Article 18 of FIFA's Rules on the Status and Transfer of Players does restrict the practice, at least as far as a third party's influence is concerned, stating that: "No club shall enter into a contract which enables any other party to that contract or any third party to acquire the ability to influence in employment and transfer related matters its independence, its policies or the performance of its teams". 58:, explained how third-party owners may either purchase a percentage of a player's "economic rights" from the club, or even purchase a player's contract. Owning the contract allows the third-party owner to increase profits by "parking a player" at a club temporarily until the player's value appreciates, at which time he is sold to another club and the agent earns a percentage of the transfer fees. 34:, an agency, such as a sports-management agency, a company, investors such as a hedge-fund, or a single investor—"takes ownership of all or part of the financial rights to a player". In some cases when a footballer is sold, the TPO, not the football club, can benefit from transfer fees and contract negotiations fees. Note that this differs from 221:
in a 10-year deal. In the wake of MSI's involvement a stream of new players arrived at the club, players who were engaged to play for Corinthians but whose economic rights were partly or wholly owned by the investment fund. By 2006 MSI was listing as its investments not just Corinthians itself but
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The practice has also been widely used in football in South America, particularly in countries such as Brazil and Argentina, with a system of players, clubs, agents, teams, and investors involved. It is associated with football clubs with few financial options that face financial hardship, and are
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drafted new rules L34 and L35 to restrict third party ownership of players from the beginning of the 2008–9 season. However, the FIFA 'third-party' rules differ drastically from the Premier League, which creates substantial gaps in the enforcement of TPO. Premier League rules authorise financial
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also announced a similar ban in European sports on 11 November 2015 following the passing of Rule 136 of Parliament's Rules of Procedure. In a written declaration, the European Parliament states that third-party ownership raises concerns over the integrity of competitions and introduces risks of
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and academic articles, businessmen or other investors buy shares in the economic rights of young players and often cover the costs of their training and accommodation. In return they are entitled to a percentage of a player's future transfer fee. A 2016 article in the
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In September 2014 UEFA announced they were going to tackle the issue. Later that month FIFA announced they would ban the practice. In July 2015 a Belgian court rejected an appeal against the banning of third-party ownership.
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announced the banning of third-party ownership, and specifically prohibited either clubs or players from entering into economic rights agreements with third-party investors. The ban took effect on 1 May 2015. The
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Ramires completed his move to Chelsea on 13 August 2010 on a four-year contract for a reported fee of ÂŁ17million. It is thought that Joorabchian would receive ÂŁ6m of this fee.
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a reported ÂŁ4 million for his share of Anderson's registration. Mendes was said to have contributed 20% of the ÂŁ3.75 million Porto paid Anderson's previous club,
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institutions to hold player economic rights - which Maciel & Walton suggests, appears to be a contravention of the all-encompassing FIFA ban. In 2007 as reported in
1839: 112:, The league's rule U18 had previously stated that the third parties were not permitted to "materially influence" a club's "policies or the performances of its teams". 2269: 1586: 294:
and a second company, Just Sports Inc., while Mascherano was jointly owned by Global Soccer Agencies and Mystere Services Ltd. All four companies were represented by
193:, heavily involved in the third-party ownership of players, defended the arrangement, calling it "the South American model and a model that appears all over Europe". 2177: 1523: 380:
while they investigated the third-party ownership of the player. JĂ´, who had played at Corinthians before moving to CSKA Moscow in 2006, was associated with
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in August 2006. One unidentified official called it, "an unedifying trade in young people that rips the heart out of clubs which try to develop players".
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were understood to own the economic rights to 60 or 70 players across Europe and South America. He was linked with Manchester City's failed bid for then
2481: 305:. Despite the fine, Tevez was allowed to continue playing for West Ham United. Both players remained in England after the controversy; Tevez moved to 1730: 160:, said of third-party ownership: "It is like trading in human beings. And it's destabilising for outsiders to have a financial interest in players." 2466: 157: 1034: 1708: 506: 2376: 1059: 483: 2407: 2294: 84:
uncovered secretive "financing practice for the global sport" with "one of the biggest firms investing millions in soccer-player futures".
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By 2016, FIFA was attempting to tighten rules regarding TPO, which "has been described in some quarters as modern-day slavery."
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After the Premiership introduced rules against third-party ownership, lawyer Jean-Louis Dupont claimed that it was illegal.
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Defenders of the practice said that it constitutes a way of sharing the burden of investment in a player. The 'super agent'
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Due to irregularities in the player's contracts, West Ham United were eventually fined a record ÂŁ5.5 million by the
521:'s 10% rights was once held by "Onsoccer – International Gestão e Marketing, S.A.", an agent until he was sold to Lyon. 30:
is the ownership of a player's economic rights by third-party sources. The third-party—which can be an agent such as a
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benefited from the trade in footballers' TPOs of footballers. They owned the "global sponsorship rights" of
35: 714: 616:, but on its annual report, it shown the payment were transferred to Desportivo Brasil Participaçoes Ltda. 545: 541: 440: 306: 2026: 42:
sometimes insolvent. By 2007, TPOs had become common practice in football in Portugal, Spain and Russia.
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over designated accounts where the proceeds of player transfers is paid into. This was notably used by
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in Brazil. A further 30% of the player's rights were reportedly owned by Joorabchian's associate
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for an undisclosed fee. It subsequently emerged that Tevez's economic rights were owned by
2412: 412: 385: 369: 313:. Manchester United failed to agree a price with Tevez's owner and he left for city rival 295: 214: 190: 135: 88: 1098: 732: 689: 1734: 1284: 298:
and the deal was brokered by MSI, whose president Joorabchian had been until June 2006.
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Third-party ownership became controversial in English football after the arrival at
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was partly owned by Global Sports Agency. Porto also sold 37.5% economic rights of
487: 424: 420: 345: 271: 255: 231: 223: 139: 54: 47: 31: 1480: 517:, Porto re-sold 25% economic rights to Pearl Design Holding Ltd. for €2,125,000. 1239: 1139: 444: 392: 183: 462:
and investment funds bought part of the economic rights of the players, namely
2074:"Palmeiras confirma acordo por Armero; agente nega e diz ter mais 3 propostas" 922: 905: 759: 597: 471: 431:. The deal was reportedly part of an agreement reached with Benfica president 396: 337: 115:
In October 2007 it was reported that Football's international governing body,
2262:"Calejado, Felipe se apresenta ao Flamengo: "Nunca fui santo e nem vou ser"" 1670: 605: 459: 1320:"Agora no Atlético-PR, Rafael Moura segue representado por Kia Joorabchian" 1372:"Kia Joorabchian should now tell us where the Carlos Tevez £25m is going" 593: 92: 2129:"Santos FC acerta venda de 20% dos direitos econômicos de Elano à TEISA" 1005:"WRITTEN DECLARATION submitted under Rule 136 of the Rules of Procedure" 1912:"Gustavo se despede do Palmeiras e espera ter mais chances no Cruzeiro" 1343: 1341: 463: 436: 416: 400: 324:
The Premier League took steps to outlaw third-party ownership in 2008.
2377:"Meia Kerlon e atacante Jonathas sĂŁo negociados com o futebol europeu" 1240:"Uefa & Fifpro urge Europe to outlaw third-party player ownership" 1122:"Uefa plans rule change to clamp down on third-party player ownership" 629:
From December 2010 to January 2011, TEISA bought 5% and 20% rights of
2408:"Ze Roberto Transfer Scandal: Not the Bargain He Was Thought To Be?!" 750: 644: 630: 365: 349: 168: 1684:"Chelsea lead chase for ÂŁ20m Benfica's Brazilian midfielder Ramires" 634: 537: 458:
When third-party ownership was allowed in Portugal, agent company
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In 2009 it was reported that the unnamed investors represented by
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players and teams conceal their third-party ownership of players.
1060:"Hero's or Villains? Third party ownership in the Premier League" 38:, where a player's transfer rights are shared between two clubs. 1704: 1667:"Kia Joorabchian adquire 50% dos direitos econĂ´micos de Ramires" 467: 164: 116: 62: 1179:"The sooner Kia Joorabchian leaves English football the better" 1035:"World Soccer's Financing Secrets Revealed in Leaked Documents" 171:
spoke out against the practise, stating it should be outlawed.
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One method of circumventing the 2015 FIFA ban is to utilise a
1213:"Profile: Pini Zahavi, football's first and only super-agent" 942:"Hammers face a pounding over third-party player agreements" 423:
but subject to transfer interest from across Europe, led by
2235:(in Portuguese). fcporto.pt. 31 August 2004. Archived from 1140:"Fifa to introduce ban on third-party ownership of players" 317:
in summer 2009. Joorabchian subsequently claimed that many
1158:"FIFA welcomes legal win for ban on third-party ownership" 1285:"Third-party owner rule not 'legitimate' - Bosman lawyer" 906:"Can player economic value rights be used as collateral?" 2180:(in Portuguese). fcporto.pt. 6 July 2009. Archived from 860: 858: 552:
in January 2008. In 2009, it acquired all the rights of
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At its annual general meeting in June 2008, the English
1757:"Chelsea complete signing of Brazil midfielder Ramires" 1610:"Manchester City, Milan, Kaka and the Joorabchian link" 1397:"Original Tevez and Mascherano contracts with West Ham" 1206: 1204: 969:"Third - party own ership of players' economic rights" 1943:[Public Offer for Subscription – Prospectus] 1399:, Soccerlens.com, 8 June 2007. Retrieved 2010-07-28. 513:
to Mamers BV. After acquired 75% economic rights of
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had secured a 50% share in the Brazilian midfielder
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Third-Party Ownership (TPO) in association football
935: 933: 866:"Football Leaks: The Dirty Tricks of Doyen Sports" 2268:(in Portuguese). 29 December 2010. Archived from 1885:(in Portuguese). 25 February 2011. Archived from 835: 833: 831: 829: 827: 825: 823: 821: 2135:(in Portuguese). 19 January 2011. Archived from 2105:(in Portuguese). 2 December 2010. Archived from 1644:(in Portuguese). Published by CMVM. 20 June 2010 1054: 1052: 1028: 1026: 497:A part of football agent company and bank fund, 126:By 2016, TPO was strictly forbidden in England. 2383:(in Portuguese). 29 August 2008. Archived from 1579:"Man City hit ownership problems in bid for Jo" 1120:Gibson, Owen; Conn, David (23 September 2014). 360:In June 2008, the transfer of Brazilian player 1834: 1832: 1830: 1828: 1826: 1824: 1498:"Premiership third-party ownership set to end" 1306:"Media Sports Investments website 30 Nov 2006" 2289: 2287: 1935: 1933: 1733:. Chelsea F.C. 13 August 2010. Archived from 1411:"Eyebrows raised at deal shrouded in mystery" 904:Maciel, Matteo; Walton, Adam (1 March 2019). 647:, one of "soccer's most celebrated players." 344:. As part of that deal Porto paid the agent 18:Third party ownership in association football 8: 1091:"FIFA bans third-party ownership of players" 1941:"Oferta pública de subscrição - Prospecto" 1779:"Report and Consolidated Accounts 2007/08" 921: 1701:"Chelsea's Ramires offer under scrutiny" 2428:"Olympiakos contrata Leonardo, da Lusa" 2178:"Comunicado da FC Porto – Futebol, SAD" 2160:"Football Leaks: The Kazakh Connection" 1876:"FC Porto Half Yearly Report (2010–11)" 1481:"Action urged on footballer investment" 817: 2361:: CS1 maint: archived copy as title ( 2354: 1524:"Jose agent's £4m jackpot on Anderson" 1349:"West Ham sign Tevez & Mascherano" 899: 897: 895: 893: 891: 889: 887: 1486:12 October 2007. Retrieved 2010-08-04 158:Professional Footballers' Association 7: 2045:"FC Barcelona 2009–10 Annual Report" 910:The International Sports Law Journal 840:Richards, Alex (27 September 2016). 486:to set up an investment fund, while 1811:"Fernandes snubs Everton for Spain" 1690:22 July 2010. Retrieved 2010-07-26 1437:"West Ham handed record £5.5m fine" 1211:Jackson, Jamie (26 November 2005). 795:(Through "Play International B.V.") 525:South America and rest of the world 2158:Sorbello, Paolo (3 January 2017). 1496:Wilson, Jeremy (2 February 2008). 1459:"West Ham receive Tevez clearance" 1318:Canônico, Leandro (25 July 2008). 1257:Castles, Duncan (5 October 2008). 411:In June 2010 it was reported that 352:, to sign the midfielder in 2006. 309:while Mascherano went to play for 266:Carlos Tevez and Javier Mascherano 25: 1951:(in Portuguese). 10 December 2010 1849:. 25 October 2010. Archived from 1673:24 June 2010 Retrieved 2010-07-26 1556:"Jo transfer hits ownership snag" 1283:Sinnott, John (27 October 2011). 1033:Panja, Tariq (23 November 2015). 707:(Energy Empreend e Participações) 435:the previous year at the time of 332:In 2007 the Brazilian footballer 217:, purchased a controlling 51% of 71:criminal activities into sports. 2482:Association football terminology 2462:Article on Players as collateral 2434:(in Portuguese). 26 January 2008 1918:(in Portuguese). 30 January 2009 1840:"FC Porto 2009–10 Annual Report" 1409:Kelso, Paul (1 September 2006). 1089:Ledsom, Mark (30 October 2007). 2304:(in Portuguese). Archived from 2080:(in Portuguese). 26 August 2010 2054:(in Spanish). 22 September 2010 2003:(in Portuguese). Archived from 1608:Conn, David (28 January 2009). 747:, a Uruguayan low division club 45:According to a 2007 article in 2295:"Santos FC 2008 annual report" 1971:"Accounts at 31 December 2008" 1707:. 27 July 2010. Archived from 1577:Wilson, Steve (18 June 2008). 1: 2467:Football Perspectives article 1532:. 1 June 2007. Archived from 1177:Winter, Henry (15 May 2009). 940:Conn, David (21 March 2007). 540:. It also acquired rights of 501:was once shared by Porto and 376:was initially blocked by the 2204:"Agent disgusted by Rangers" 1973:. Fluminense. Archived from 1370:Conn, David (14 July 2009). 1066:. 5 May 2009. Archived from 213:fund, founded and headed by 2457:Daily News Auckland article 1731:"RAMIRES SIGNS FOR CHELSEA" 1351:. BBC Sport. 31 August 2006 1064:Field Fisher Waterhouse LLP 439:' transfer to Benfica from 2498: 1997:"Balanço Patrimonial 2009" 1784:. FC Porto. Archived from 1461:. BBC Sport. 28 April 2007 1439:. BBC Sport. 27 April 2007 1558:. BBC Sport. 18 June 2008 923:10.1007/s40318-018-0140-0 694:Global Soccer Investments 592:. It owned 25% shares on 156:, chief executive of the 596:until he transferred to 382:Media Sports Investments 292:Media Sports Investments 211:Media Sports Investments 146:from the Brazilian club 36:co-ownership in football 806:Co-ownership (football) 641:Doyen Sports Investment 622:owned Colombian 80% of 536:and 50% of Mozambican 490:set up its own fund – 1759:. BBC. 13 August 2010 1308:Retrieved 2010-08-03. 1011:. European Parliament 715:Bertolucci Assessoria 336:was transferred from 1589:on 11 September 2012 1529:The Evening Standard 1163:The Washington Times 1146:. 26 September 2014. 482:once partnered with 286:from Brazilian side 74:According to a 2015 2387:on 14 December 2011 1977:on 31 December 2008 1711:on 16 December 2012 1688:The Daily Telegraph 1583:The Daily Telegraph 1183:The Daily Telegraph 679:with Fundo CAIC LLC 248:Sebastián Domínguez 68:European Parliament 2242:on 5 December 2010 2109:on 6 December 2010 2031:esporte.uol.com.br 1856:on 25 January 2011 1682:Mascaskill, Sandy. 1665:Massi, Alexandre. 1536:on 14 January 2013 985:on 24 January 2016 872:. 21 December 2016 793:Cristian Rodríguez 667:Fernando Belluschi 503:International Foot 492:Benfica Stars Fund 433:Luís Filipe Vieira 270:On 31 August 2006 2343:on 13 August 2010 2230:"Facto Relevante" 1817:. 27 August 2007. 1737:on 14 August 2010 1101:on 9 January 2016 677:Marco Torsiglieri 342:Manchester United 307:Manchester United 276:Javier Mascherano 240:Javier Mascherano 222:also the players 144:Javier Mascherano 16:(Redirected from 2489: 2444: 2443: 2441: 2439: 2432:globoesporte.com 2424: 2418: 2417: 2403: 2397: 2396: 2394: 2392: 2373: 2367: 2366: 2360: 2352: 2350: 2348: 2342: 2336:. 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Index

Third party ownership in association football
football agent
co-ownership in football
The Guardian
Mirror
FIFA
European Parliament
Bloomberg News
Football Leaks
floating charge
FC Porto
Premier League
FIFA
West Ham United
Carlos Tevez
Javier Mascherano
Corinthians
Gordon Taylor
Professional Footballers' Association
UEFA
FIFPro
Pini Zahavi
Kia Joorabchian
Media Sports Investments
Kia Joorabchian
Corinthians
Carlos Tevez
Marcelo Mattos
Gustavo Nery
Roger

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