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Footnote 11 In this regard, there are clear similarities between FIFA’s TPO ban and UEFA’s current review of football agent remuneration. Footnote 10 Both clubs’ interest in TPO and third parties’ interest in investing in players were largely driven by significant and growing transfer fees, and one of the reasons why TPO was viewed as problematic was that it meant money leaving the football system and ending up in the pockets of external actors. In 2014, FIFA modified its regulations on the status and transfer of players to include a complete ban on third-party ownership (TPO), a situation where a third party acquires an interest in a player’s future transfer fees.

To curb this, FIFA adopted the Financial Fair Play (FFP) regulations, the primary element of which is that clubs that fail to break even financially are penalized. In 2010, FIFA observed that many football clubs were spending well beyond their means and that transfer fees were a significant factor behind that development. Footnote 9įootball’s governing bodies have in recent years taken multiple actions that can be viewed as a consequence of the rapid development of the football transfer market. About 85% of all international football player transfers do not involve any transfer fee and less than 5% involve the payment of a transfer fee in excess of €880,000.

While multi-million-euro transfer fees receive most of the media attention, they are not the norm. Footnote 8 Top-earning clubs pay a large portion of all transfer fees and significantly contribute to their increase. The equivalent number for the 2016–2017 season was €199 million, a total increase of 553% over nine seasons. In the 1996–1997 season, a yearly revenue of €36 million was sufficient for a football club to qualify among the twenty highest earning in the world. Footnote 7 This was particularly true for Europe’s top football clubs. Technological development in the 1990s greatly increased the ability of people around the world to follow football clubs from afar, and for the major football clubs this increase in potential audience translated into greater revenue, particularly in the form of television licensing agreements. One important factor behind the transfer-fee trend is the breathtaking revenue growth in football.