FIFA Transfer System 2027: The New Rules of THE Game

SÉRVULO PUBLICATIONS 25 Jun 2026

On 10 June 2026, FIFA approved a new regulatory framework for the international transfer system in football, which includes a new version of the Regulations on the Status and Transfer of Players ("RSTP"), as well as amendments to the FIFA Disciplinary Code, the FIFA Governance Regulations and the Rules of Procedure of the Football Tribunal (the "Transfer System 2027”). 

The new Transfer System 2027 is the result of several months of negotiations between FIFA, the players' representatives (FIFPRO), the clubs (EFC - European Football Club Association) and the professional leagues (WLA - World Leagues Association), and also had the participation of CONMEBOL and UEFA.

This is the first substantive regulatory response to the decision handed down by the Court of Justice of the European Union (“CJUE”) in the Lassana Diarra case and is the most comprehensive regulatory package since the introduction of the international credit transfer system in 2001.

What are the main changes resulting from the Transfer System 2027?

•      Calculation of compensation due in the event of breach of contract

The new article 17 of the RSTP fully reformulates the regime of compensation due in the event of breach of contract, now distinguishing between agreed compensation and compensation set by the Football Tribunal:

a)      Agreed set-off (Article 17(1)). The parties may contractually predetermine the amount of compensation due in the event of a breach (liquidated damages). However, the Football Tribunal may reduce that amount sparingly if it considers it to be excessively high and must disregard it if it is manifestly unfair.

For players with an annual fixed remuneration of up to USD 150,000 (or equivalent), Article 17(1)(c) imposes a minimum level of protection: any agreement on the compensation payable to the player must guarantee him, at least, the residual value of the unfulfilled contract, except in exceptional circumstances justifying a lower amount.

b)   Compensation in the absence of a contractual clause (Article 17(2)): In the absence of a prior agreement, the non-defaulting party is entitled to full compensation for the damage caused by the breakdown, measured according to the specific circumstances of the case. The new regime specifies the parameters for assessing the damage for each party: in the case of the player, the damage may include the residual value of the contract and any other damage caused (Article 17(3)); in the case of the club, it may include the value of the Player's services, the loss of the transfer price, the Player's replacement costs and any other losses (Article 17(4)).

In a transversal way, the new regime enshrines the principle that both the player and the club are always entitled, at least, to an amount equivalent to the residual value of the unfulfilled contract. This is a basic guarantee that provides greater predictability to the patrimonial consequences of the breach of contract.

It is also provided that, in cases of abusive conduct, the Football Tribunal may impose an additional penalty of up to six months' salary (Article 17(6)).

• Joint and several liability of the third club

The new contracting club is no longer automatically liable for the payment of compensation due for breach of contract, and its joint and several liability now depends on the demonstration that it actually induced the player to break, in accordance with the understanding of the CJEU in the Diarra case (Article 17(9)).

It should be stressed, however, that the reform is not intended to create a free exit market. Article 17(11) establishes a rebuttable presumption of inducement to rupture whenever the player signs a new contract within 45 days of unilateral termination without just cause. This presumption reverses the burden of proof: it will be up to the new club to demonstrate that it did not induce the player to break up, failing which it will be held jointly and severally liable under the terms of paragraph 9.

• Duration of contracts concluded with players under 18 years of age

It is now possible to conclude contracts of up to five years with players under the age of 18 trained internally, provided that the player has been registered with the club for at least 20 months or in two consecutive competitive periods (whichever is shorter), without prejudice to applicable national legislation and any collective bargaining agreements in force.

It should be noted that, in the Portuguese case, the national legislation limits the duration of sports employment contracts for minors to three sports seasons, without providing for the enabling exception now enshrined in Article 18 of the RSTP. Thus, even if a Portuguese club fulfils FIFA's regulatory requirements to conclude a five-year contract with an internally trained minor, that contract will not comply with Portuguese law in its current form.

• Extension of the protected period for players up to 23 years old

Contracts signed with players up to the age of 23 will now benefit from a longer protected period, reinforcing the protection of clubs' investment in the training and consolidation of young players (Article 18 of the RSTP).

• Possibility of player participation in transfer fees

One of the most relevant innovations of the package is the introduction of article 21bis of RSTP, which gives players the possibility to participate in transfer values.

Specifically, it is provided that clubs and players are free to agree, in any sports employment contract and regardless of salary level, a player's right to participate in the amount of the transfer fee paid for his acquisition.

Without prejudice to voluntary participation, Article 21bis imposes a mandatory regime of participation in the context of permanent international transfers for players with an annual fixed remuneration of less than EUR 150,000 (or equivalent) in the club of origin, during the season in which the transfer takes place. In such a case, the releasing club must pay directly to the player an amount equivalent to 5% of the total fixed transfer fee actually received.

The player may partially waive his right to participate, but this waiver is limited: it can only apply to the portion of the 5% that exceeds the higher of the following amounts: (i) the player's fixed remuneration for the last year of his contract with the club of origin, or (ii) 2.5% of the total fixed transfer compensation. Any waiver that results in a participation below these limits is disregarded in excess proportion.

The right to participate does not apply where: (i) national law, domestic regulations in force at the time of adoption of the RSTP, or a validly negotiated collective agreement prohibit it; or (ii) national law or a collective agreement already enshrines an equivalent concept conferring on the player the right to participate in the transfer fee, irrespective of whether that right is exercised against the club of origin or the contracting club. This latter exclusion avoids duplication of mechanisms in jurisdictions that already have domestic regimes with equivalent practical effect.

• Training compensation and solidarity mechanism

The parameters for calculating the training compensation are updated, with the aim of ensuring an adequate correspondence between the investment actually made by the training clubs and the compensation received. The categories of clubs and their reference training costs are also reviewed (Annex IV of the RSTP).

The solidarity mechanism is reinforced with new obligations for traceability of training pathways. Clubs involved in transfers are required to fully document the player's training history, facilitating the identification of creditor clubs and reducing the situations of non-payment that have characterized the application of this mechanism (Annex V of the RSTP).

The instruments for the implementation and collection of amounts due as training compensation and solidarity are also strengthened. The Football Tribunal now has direct jurisdiction to decide disputes relating to these payments, and non-compliance may lead to sporting sanctions, including a ban on the registration of new players.

• Registration procedure and ITC

The procedure for issuing the International Transfer Certificate (ITC) and registering players is reformulated, reducing the situations in which the federation can block the issuance of the ITC and establishing peremptory deadlines for the completion of the procedure (Annex III, Article 11 of the RSTP).

• Transparency, governance and digital platforms

The Transfer System 2027 enshrines a significant reinforcement of transparency and governance obligations in the transfer market. In particular, all agreements related to a transfer (including side letters, deferred payment agreements, incentive clauses and any parallel arrangements) are now subject to mandatory registration on the FIFA platform, under penalty of invalidity and disciplinary sanction.

• Dispute resolution

The regulatory package also includes reforms to the transfer dispute settlement system, including:

a)      Redefinition of the jurisdiction of the Football Tribunal (Article 22), clarifying the boundary between the jurisdiction of the FIFA Football Tribunal and that of national courts. The Football Tribunal sees its competences extended, now covering, expressly, disputes relating to training compensation, solidarity mechanism and payments to intermediaries. The articulation with the Court of Arbitration for Sport (TAS/CAS) is also revised, with more precise rules on the deadlines and conditions for appeal.

b)      The instruments for enforcing decisions of the Football Tribunal are strengthened. Failure to comply with pecuniary obligations resulting from decisions of the Court may give rise to sporting sanctions, including the prohibition of registration of new players, deduction of points and exclusion from competitions (Article 24).

• Global Social Dialogue Platform

The regulatory reform is inseparable from the Memorandum of Understanding signed between FIFA and FIFPRO, announced on the same date.

This agreement, effective immediately until 31 December 2031, creates a Global Social Dialogue Platform for professional football, involving FIFA, FIFPRO, WLA and EFC.

The agreement formally recognises FIFPRO as the global representative organisation of players and gives it a seat on the FIFA Council and representation on the organisation's legal committees.

The scope of the Platform is broad: it covers not only future amendments to the RSTP – which are subject to collective agreement between the social partners – but also occupational health and safety issues, including specific provisions on pregnancy, adoption and parental leave. It is also important to underline that any measures that increase the workload of players will now require an agreement between FIFA and FIFPRO.

Thus, it is not only a question of changes to the rules for transferring players, but a real transition of international football to a model of social dialogue: the FIFA RSTP has thus evolved into a regulation negotiated and discussed between FIFA and the Players' representatives.

The Transfer System 2027 will come into force on January 1, 2027, and will apply to the next transfer market.

João Saúde | js@servulo.com

Miguel Santos Almeida | msa@servulo.com

Maria Novo Baptista | mnb@servulo.com