Third-party ownership in association football

Third-party ownership in association football is the ownership of a player's economic rights by third-party sources, such as football agents, sports-management agencies, or other investors. Note that this differs from co-ownership in football, where a player's transfer rights are shared between two clubs.

The involvement of investors in the 'ownership' of players is a common practice in football, particularly in Brazil and Argentina, where many clubs are insolvent or financially limited. Businessmen or other investors buy shares in the economic rights of young players and often cover the costs of their training and accommodation. In return they are entitled to a percentage of a player's future transfer fee.

In April 2015, FIFA announced the banning of third-party ownership, and specifically prohibited either clubs or players from entering into economic rights agreements with third-party investors. The ban took effect on 1 May 2015. The European Parliament also announced a similar ban in European sports on 11 November 2015 following the passing of Rule 136 of Parliament’s Rules of Procedure. In a written declaration, the European Parliament states that third-party ownership raises concerns over the integrity of competitions and introduces risks of criminal activities into sports.

At its AGM in June 2008 the English Premier League drafted new rules L34 and L35 to outlaw any type of third party ownership of players from the beginning of the 2008-9 season. The league's rule U18 had previously stated that the third parties were not permitted to "materially influence" a club's "policies or the performances of its teams".

In October 2007 it was reported that Football's international governing body, FIFA, was acting to ban 'third-party' ownership. Article 18 of FIFA's Rules on the Status and Transfer of Players does restrict the practice, at least as far as a third party's influence is concerned, stating that: "No club shall enter into a contract which enables any other party to that contract or any third party to acquire the ability to influence in employment and transfer related matters its independence, its policies or the performance of its teams".

In September 2014 UEFA announced they were going to tackle the issue. Later that month FIFA announced they would ban the practice. In July 2015 a Belgian court rejected an appeal against the banning of third-party ownership.

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