Meeting Targets and Getting Paid

| General

Meeting Targets and Getting Paid

Imagine a situation where a player signs a contract with a football club, but later on, the club fails to pay the agreed-upon salary or bonuses. 

The player believes that the club is in breach of contract, while the club argues that the player did not fulfil certain performance requirements. 

Any ambiguity to the fulfilment of these clauses can lead to a contract dispute, where lawyers may get involved to resolve the issue through negotiation, mediation, or even legal action if necessary.

In football transfers, several legal issues can arise. Some common ones include:

  • Contractual Disputes: Disagreements between clubs, players, or agents regarding contract terms, payment, or breach of contract.
  • Player Eligibility: Ensuring that the player meets the necessary requirements, such as work permits, age restrictions, or international transfer regulations.
  • Third-Party Ownership: Dealing with the involvement of third parties, such as agents or investment groups, in player transfers, which may raise legal and ethical concerns.
  • Image Rights: Negotiating and protecting a player's image rights, including the use of their name, likeness, and endorsements.
  • FIFA Regulations: Complying with the regulations set by FIFA, such as transfer windows, compensation for training and development, and financial fair play rules.
  • Dispute Resolution: The choice of resolving conflicts through mediation, arbitration, or legal proceedings when negotiations fail to reach a resolution.

Following the transfer of Neymar to PSG from Barcelona in 2017. It was reported that Neymar had a loyalty bonus in his Barcelona contract, which was supposed to be paid to him if he stayed with the club for a certain period of time. However, when Neymar left Barcelona, the club refused to pay the loyalty bonus, citing a breach of contract.

Barcelona argued that Neymar's departure before the loyalty bonus was due meant that he did not fulfil the contractual requirements to receive it. On the other hand, Neymar claimed that Barcelona had breached their agreement by not paying the bonus and filed a lawsuit against the club. It was suggested that although Neymar had stayed past the date the bonus was due to be paid, it was an implicit term that this was a reflection of his continued employment at Barcelona. 

Ultimately, the dispute between Neymar and Barcelona was settled out of court, and the details of the resolution were not publicly disclosed. However, this case evidences how bonuses in player contracts are not always clear. 

This underscores the importance of clear and precise contractual language to avoid uncertainties and disagreements in the future.

banner

Articles

  • Conquering the Capital Markets - The Breakdown

    Conquering the Capital Markets - The Breakdown

    General 09.07.2024

    The capital market is where companies and governments raise long-term funds. It is a place where investors buy and sell financial securities like stocks and bonds. These markets play a crucial role in

  • Issue Bonds or Take Out a Loan?

    Issue Bonds or Take Out a Loan?

    General 05.07.2024

    A bond is like an ‘I-O-U’ issued by a company or government when they want to borrow money. When you buy a bond, you are lending money to the issuer in exchange for periodic interest payments and

Stay Tuned

Receive regular news, updates, upcoming events and more...