What are the early effects of the TPO ban in Brazil?

Brazil_Football_on_Sand
Published: Friday, 14 August 2015 Written by Mariana Rosignoli No Comments

In December 2014, FIFA sent Circular 14641 to its members, informing them that the Executive Committee had approved, effective from 1 January 2015, new rules banning the third-party ownership of players’ economic rights (“TPO”).2 The letter also set out the definition of a “third party”, and a new provision formalising the ban, to be included as Article 18bis of FIFA’s Regulations on the Status and Transfer of Players.3

FIFA’s decision surprised the market, and the early effective date - 1 May 2015 - worried clubs and investors around the world, partly due to the sheer prevalence of third party arrangements.   Eight months after coming into force, what effects has the ban had on the Brazilian market?

 

A brief background to TPO in Brazil

There are a large number of models for the participation of third parties in football clubs, but the most common is when companies or individuals provide money - invest in a club - in return for a percentage of the future transfer value of a player. The value rights in a player that are subject to temporary or permanent assignment are often referred to as "economic rights". In this way, Brazilian clubs have sought to solve their financial problems by attracting investors willing to inject their resources into the club in return for a percentage of the economic rights in their players. The attraction for investors is the potential for high returns, difficult to attain in other industries. 

Continue reading this article...

Register with your email and password
Already a member? Sign in

Get access to all of the expert analysis and commentary at LawInSport including articles, webinars, conference videos and podcast transcripts.  Find out more here.

Related Articles

About the Author

Mariana Rosignoli

Mariana Rosignoli

Mariana is partner at S. Santos Rodrigues Lawyers, a firm based in Brazil. Mariana advises on sponsorship, image rights, employment  contracts, investments, disciplinary, athletes taxation and  organization (documents) of clubs, leagues and related.

Leave a comment

Please login to leave a comment.

Courses

Legal Advisors

Upcoming Events

There are no up-coming events

Copyright © LawInSport Limited 2010 - 2020. These pages contain general information only. Nothing in these pages constitutes legal advice. You should consult a suitably qualified lawyer on any specific legal problem or matter. The information provided here was accurate as of the day it was posted; however, the law may have changed since that date. This information is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation. LawInSport is not responsible for any actions taken or not taken on the basis of this information. Please refer to the full terms and conditions on our website.