FIFA to Rewrite Contract Termination Rules in 2027

FIFA will rewrite Article 17 of its transfer rules from 1 January 2027, changing how compensation is calculated when a player and club fall out over an early termination of contract, Sport reported.

The trigger, by all accounts, is the Julián Álvarez case. Under the current article, clubs and players have often clashed over compensation figures set so high, or negotiations refused outright, that a move became impossible to complete even when a player made his intentions plain.

Once the new rule takes effect, competitions will have to adapt contracts so that any unilateral termination fee bears a reasonable relation to the actual circumstances of the transfer. The stated aim is to stop either side using a disproportionate figure to block a departure by default.

Two scenarios will apply. Where a contract includes a release clause, the compensation will be the sum written into that clause, unless it is manifestly excessive and unfair. Where there is no such clause, the figure will be assessed against a set of criteria: the remaining value of the contract, the player's salary, the financial loss caused by the transfer, the cost of finding a replacement, and any proven damages.

Players' agents have backed the change, which FIFA presents as more transparent and predictable than the current case-by-case approach.

Further detail on how FIFA will apply the new criteria has yet to be published.