The Ultimate Guide to the Football Transfer System: Inside FIFA’s TMS, Transfer Rules, and Global Market Dynamics

Introduction

Football, the world’s most-watched sport, has a fan base of over 3.5 billion and an industry worth hundreds of Billions. In Europe, it is a €38 billion economy. Behind this industry lies a complex system comprising a range of components. That system is the “Player Transfer System”.

The system is emphasised with a tweet: “Here we go!” Three words from Fabrizio Romano.

In 2024 alone, clubs shattered records, spending $8.59 billion on international transfers more than the GDP of entire nations like The Gambia, Comoros, and São Tomé and Príncipe combined. But behind every headline-grabbing transfer, there’s a hidden system of rules, negotiations, and financial gambles that shape the beautiful game.

For instance, why did PSG reject €200 million for Kylian Mbappé, only to lose him for free a year later? How can a teenager from Lagos spark a bidding war among Europe’s elite? And what happens when a transfer goes wrong?

This is the untold piece of football’s transfer system from FIFA’s secretive ‘Transfer Matching System’ to the loopholes agents exploit, from the Bosman ruling that changed the game forever to the immigration rules that can make or break a deal. By the end of this article, you’ll never see a ‘Here we go!’ tweet the same way again.

Transfers are a complex whole involving several individuals and institutions, which include but are not limited to:

1. Players
2. Agents
3. Clubs
4. Leagues
5. National Associations, such as the English FA
6. FIFA, its Transfer Matching System, and Clearing House for International transfers.

Player Registration

At the core of transfers is player registration.

What is Player Registration?

Every year or footballing season, according to FIFA Rules on the Status and Transfer of Players, the rules governing the transfer of players internationally and define the framework for domestic transfer, provide that “A player must be registered at an association to play for a club as either a professional or an amateur”.

This means a player cannot play for a club participating in a league, such as the English Premier League or Spanish La Liga, except that player is registered with the English FA or the Royal Spanish Football Federation. The registration of a player involves the:

“The act of making a written record containing details of a player

that include:

a) the start date of the registration

b) the full name of the player;

c) the date of birth, gender, nationality, status as a professional, and nature of the registration (permanently or on loan);

d) the name of the club in the association where the player will play

(including the FIFA ID of the club);

e)the training categorisation of the club at the moment of registration;

f) the FIFA ID of the player;

g) the FIFA ID of the association.”

The registration of players in the football association is done by a club in the Football Association System, known as the Electronic Player Registration System, which is integrated with the FIFA Connect ID Service and the FIFA Connect Interface. This is done to get a proper record of players within an association playing different leagues, and still streamlining the administrative processes and avoiding irregularities.

For Clarity, the FIFA connect ID Service is a system that provides unique identifiers for clubs, players, and anyone recognised to be in the football space and “keeping a central record of the current registration(s) of all entities,” while the connect interface is an electronic communication system by FIFA “to exchange information electronically.”

The registration of players or the change of registration from one club to another within an association, or a transfer from another association, can only be done twice in a season or twice within 12 months fixed by the relevant association. These periods of registration are known colloquially as the transfer window, determined by various Leagues and Associations.

It should be noted that though leagues and Football associations can determine when it could happen, there is a limit to how long each registration period or transfer window lasts. Thus, the first registration period may begin as early as the first day after the day on which the competition period of the previous season ended, and at the latest on the first day of the new season.

The first registration (transfer) period can last between eight and 12 weeks. The second registration period will be in the middle of the season and will be between four and eight weeks long. Together, both transfer window periods cannot be more than 16 weeks. The competition dates and the two registration periods for the season must be entered into FIFA's system at least 12 months before they start.

In Europe's top 5 football leagues, the first period of transfer usually occurs in June, July, to August, popularly known as the summer transfer window, while the second registration or transfer periods happen between December and January, in the middle of the season, known as the winter transfer window. Player registration and transfer can only happen within these periods, but there are exceptions.

Exceptions To The Transfer Window

What are they?

A player can be registered outside the transfer window when a professional who has unilaterally terminated their contract with just cause, or whose contract has been unilaterally terminated without just cause by their club.
When a player whose contract has naturally expired or has been mutually terminated before the end of the registration period applicable to the engaging club, may be registered with the engaging club also after expiry of the respective registration period

Or exceptions created by the FIFA Club World Cup, like the immediate one held in the USA, where there was an exceptional 10-day transfer or registration period.
Further exceptions are permitted for female players to register so as to replace another who is on pregnancy, adoption, or family leave. This also applies to female players who are returning from such leave. For instance, former Germany goalkeeper Almuth Schult signed for Frauen Bundesliga side Hamburger SV in April 2024. Eight months after the birth of her third child, outside the transfer period. The first to utilise such rights.

Now, for context, female players, unlike their male counterparts, are guaranteed certain privileged rights due to their unique nature, such as maternity and child adoption leave.

A quick note or fact: a player cannot be involved in two consecutive transfers, national or international, within 16 weeks; the parties (clubs and player) involved in those two transfers have participated in a bridge transfer, which is punishable by the FIFA Disciplinary Committee.

The Transfer Process

The transfer process, or registration transfer, is a complex whole containing different elements. Thus, to start with, how does a Club register a player?

There are different forms of getting a player registration or transferring their registration to the new club, which include:

1. Where a Player in contract and registered with another club: If a club intends to register or get the services of a player who is registered or in contract with a club, the new or intending club must reach out to the player’s current club or its agents in writing before entering into negotiations with him.

2. When a player’s current contract with his club has expired or is due to expire within six months: Thus, if a player's contract with his club has expired or is due to expire within six months, you can get him to negotiate and sign him. This is known as the Bossman transfer. It is called so because of a player called Jean-Marc Bosman, who played for the Belgian club Liège. His playing contract expired in 1990, but the club that wanted to buy him (USL Dunkerque) did not offer a large enough transfer fee. As a result, Liège kept his registration and did not allow him to leave the club. Bosman argued that such a situation was unfair and that he should be allowed to move to another club once his contract had ended. He took the case to the highest European court, now called the Court of Justice of the EU (CJEU), and won. This led players to become free agents to sign with other clubs when out of contract, and that's why Mbappe can leave PSG for free.

Thus various leagues provide for this including the English Premier League where the third Saturday in May of a season, a club is permitted to approach a player who will be out of contract as at 1 July that year who has not received an offer of re-engagement from their current club which is on no less favourable terms than their existing agreement or who has received such offer but rejected it.

The Problem of Tapping Up.

Despite these clear-cut rules, we have seen instances where clubs cross the line. For instance, in June 2005, Chelsea was found guilty by the Premier League of illegally approaching Arsenal’s Ashley Cole; the club received a £300,000 fine and a suspended three-point deduction to be invoked if it was found guilty of similar conduct the following season. The player was fined £100,000, and the then Chelsea manager, Jose Mourinho, was fined £200,000 for breaking the managers’ code of conduct, both sums being reduced to £75,000 on appeal. This is known as tapping up. The above decision confirms the position of FIFA and its rules regarding getting the consent of the Club that a prospective transfer target is engaged with.

Transfer Agreement

Consequently, to secure or transfer registration, the new club usually pays a compensation known as the transfer fees or sometimes pays a release clause fee or buy-out fee, which is inserted into the agreement between the player and the old club, known as the selling club.

Thus, generally, in a transfer, there are usually at least two areas for agreement that need to be

reached:

Between the buying and selling clubs, and
Between the buying club and the player.

This could sound easy, but it is not that simple.

A transfer agreement is formed when the buying club and the selling club reach an agreement, which will likely involve:

the transfer fee (likely to be paid in instalments);
a sell-on clause which applies if the player transfers again in the future; and
Buy-back clause- empowering a selling club to repurchase a promising player at a set fee, should the player excel in the future
First Refusal Clause.

any ‘add-on’ compensation – in the event, for example, that the buying club is promoted or qualifies for the Champions League, additional payments may be triggered.

Transfer Fees

Transfer fees are usually split into installments over the length of the player’s employment contract with the new club or such shorter period as is agreed between the clubs. Such installments will be payable whether or not the player remains registered with the new club. The fixed consideration must be payable within the term of the player’s initial contract of employment with the new club. If the player’s registration is transferred before the expiry of that employment contract, any outstanding installments of the fixed compensation become payable immediately.

For example, for a three-year deal with a player, 50% fees would be paid once the transfer has been completed, 25% on the first anniversary of the completed transfer, and 25% on the second anniversary. As detailed above, there may be add-on fees. However, if the player transfers on the first anniversary, the club that is to pay would have to pay 50%.

Let me give you a little breakdown. When newspaper headlines quote a transfer fee of £35m, many fans would think that the buying club transfers £35m to the selling club on the day the transfer happens, and that is that. The reports of a transfer are often different from the actual amounts paid to a club during the player’s time at the club.

The Aguero Example

Let’s take the transfer of Sergio Aguero, worth €36+ million, from Atlético Madrid and Manchester City. A leaked copy of the agreement states that Manchester City would pay:

€12 million up front on 29 July 2011;
€12 million on 1 July 2012 (secured with a promissory note);
€12 million on 1 July 2013 (also secured with a promissory note);

In addition to this €36 million “Fixed Sum”, Atlético Madrid was also entitled to a maximum of €2 million in performance-related bonuses, including:

€1 million for each Premier League title Manchester City won during the five-season period from 2011–2016;
€1 million for each season City reached the Champions League Final (i.e., won the semi-final);
€500,000 for each season City reached the Champions League Semi-final (i.e., won the quarter-final);

Separately, there were other bonus payments, including:

€250,000 for every 15 goals Aguero scored in official competitions in a season during that same five-year period;
€250,000 for every 25 appearances Aguero made, provided he entered the match before the 70th minute;

The final amount paid could increase up to €48 million, depending on Aguero’s performance and City’s success.

Sell On Clause

Sell on Clause is an optional clause inserted by the parties (clubs) where the selling clubs agrees for a lower fee so as to share in the transfer fee gotten from the future transfer of the player by the buying Club. When including a sell-on clause, careful consideration must be given to whether a sell-on fee would be payable by the buying club on the next transfer only or if the registering club was to receive proceeds in respect of the player on any subsequent transfer.

Further, it is considered whether the sell-on fee is to be a percentage of any future transfer fee received by the buying club or a percentage of the excess received over and above the fee which has already been paid to the selling club. If it is based on a percentage of the excess, it would be agreed whether the sell-on fee is to be calculated purely on the value of the transfer fee paid to the selling club or on the net costs of the transfer, where an intermediary’s fee may be added into the equation.

Clubs also consider whether a sell-on clause would be payable on a fee received for the loan of the player or just on the permanent transfer of the player. Clubs must ensure their drafting in this respect is clear to avoid potential disputes at a much later stage, when the intention of the parties at the time of the original transfer may be difficult to ascertain.

Thus, It is quite normal for a young player to be transferred for no initial transfer fee but with a

large percentage sell-on clause if that player is sold for any fee in the future, this is practiced mostly between two clubs where the selling club is of the lower leagues and the buying team is playing in a higher league but is not financially buoyant while the player is promising. The buying provides a platform to showcase the player to better prospects.

Buy Back Clause

Buy-back clauses are sometimes inserted into a transfer agreement, giving the selling club the ability to require the new club to transfer back what is usually a young, promising player for an agreed fee in the future, within a stipulated time frame, should certain agreed conditions be met, and subject to the player’s consent.

Buyback provision is usually based on some individual or cumulative triggers:

• the clause is usually activated within defined transfer windows (e.g., the selling club

cannot buy back the player for a minimum of two seasons.)

• The original selling club bids a set amount, which varies depending on the season that

the buyback clause is triggered (e.g. £2m in the 18/19 windows and £2.5m in the

19/20 windows).

An example is Casemiro’s buy-back clause, which was activated from Monaco to Real Madrid.

The first refusal clause

A first refusal transfer clause gives the club that benefits from it the opportunity to be notified of any offer the selling club is willing to accept for the transfer of the player. This differs from a buyback clause because the selling club has the right to decide whether to sell the player, whereas a buyback clause can automatically trigger the transfer if certain conditions are met.

Any-Other Add-Ons

The Clubs could also agree on other add-on fees, which could include conditions that, when met, would prompt further payments. Add-ons could include, but limited to, criteria such as: the club achieving promotion; the club winning trophies; the club avoiding relegation; player achievements such as international team appearances and/or goals.

Thus, a Club Transfer Agreement isn’t as straightforward as it seems. A £40 million deal could include a base payment of about £30 million to be paid in installments over a period of 5 years. An outright payment of £10 million when the deal is done, and £5 million paid each anniversary. The other part of the deal would include variable factors such as £5 million if the team wins the Champions League, £3 million if the Player scores 30+ goals in a Season, £1 million if the player makes 50 appearances for the buying club, and £1 million if the player is called for international duty by his country.

Thus, in the above transfer agreement, just £30 million is guaranteed; the remaining £10 add-on payments are dependent on performance.

Loan Agreements

Loan agreements are a temporary transfer between football clubs. A club enters into an agreement that involves them taking a player on loan, and usually contributing to most, if not all, of the player’s wages. Manchester United has been loaning a lot of its underperforming players lately to other clubs. Players such as Anthony to Getafe before his eventual sale, Marcus Rashford to Aston Villa, and now to Barcelona.

Thus, a loan agreement has a minimum duration of 6 months and a maximum duration of one year/season. There can be a clause for an option for permanently transferring the player if certain conditions are met, such as a release fee. Further, a club cannot have more than six players loaned out during a season, nor can it have more than six loaned players in its registered team in a season, except that the 7th to nth Player is a club-trained player of the Club he is loaned to. A club can also not loan more than 3 players to or from a specific club in a season.

However, it should be noted that there are variations to the application of the requirements in various leagues for domestic loan transfer.

In addition, some leagues add restrictions on loans, such as in England, where the Premier League regulations state that a Premier League player cannot play against his parent club. This has been criticised by some persons, but proponents argue that it avoids a “conflict of interest”.

An interesting scenario was when, in the Champions League before Atlético Madrid played Chelsea in April 2014. Atlético Madrid had Chelsea goalkeeper Thibaut Courtois on loan, under the terms of which Atlético would have to pay a fee to allow the Belgium international to face Chelsea. However, the club could not afford to pay the fee Chelsea wanted for the two games (reportedly £5m). Before the game, UEFA indicated that the payment clause influenced player selection and was therefore ‘null, void and unenforceable’.

Club-Player Agreement.

As stated earlier, there are two agreements, one between the clubs and then the player. Thus, there is no hard or fast rule as regards what the clauses contained in the agreement; however, FIFA provides certain guidelines and principles to be followed, and the power for National Associations and leagues to implement their rules which do not contradict principles set out by FIFA.

Certain General principles guiding Club Player Agreement include that the duration of the player contract is limited to a minimum of the time of signing of the contract to the end of the season. Thus, if a player were to sign during the Summer, the minimum period is 12 months, while if signed during the winter transfer window, it would be a minimum of 6 months. Further, the maximum years of engaging a player is 5 years for players 18 years and above, while 3 years for those signed below 18 years of age. It should be noted that certain clubs insert the option for an extension of the contract automatically or by mutual agreement if certain factors are met after the period.

Further, there are also principles guiding the termination of the agreement, which include that a player or club cannot terminate except after the end of a season. A party cannot terminate the contract unilaterally except for what FIFA calls “Just Cause,” which includes, but is not limited to, the following reasons of either payment of compensation or imposition of sporting sanctions by either party. For the player to terminate, it could be failing to pay a player at least two monthly salaries, and after 15 days, for the debtor club to fully comply with its financial obligation. It could also include a player not being played enough, a minimum of 10% of the game played in a season.

The Club can terminate the contract agreement if the player fails to perform his or her duties, such as playing in matches and training for more than 12 months. Further, other instances could include breach of certain clauses, such as a criminal conviction. Consequently, National Associations and their leagues sometimes have a uniform format for agreements or provide guidelines, such as the English Premier League, which is provided in forms 14 and 15 of the Premier League Handbook.

Thus, a standard player agreement includes:

1. The player’s remuneration and salary to be paid by the club.

2. The responsibilities of the player, including: attending matches; training; complying

with club instructions; not bringing the club into disrepute (by, for example, posting a Tweet badmouthing the chairman or manager.)

3. The responsibilities of the club – to release the player for national team matches, promptly arrange medical treatment, maintain insurance for the player, and provide other forms of support for the player

4. Disciplinary and dispute procedures, where the club will investigate and decide upon

breaches of contract, or failures to observe the contract (if, for example, a player fails

to turn up for training, fights with other teammates, or refuse to play for the team).

5. Termination of the contract by the club (e.g., for taking drugs) and/or by the player

(e.g., for the club not paying his salary).

6. Community public relations and club marketing duties (such as meeting kids in

hospital over Christmas (e.g, Nottingham Forest last Christmas saw players involved in gifting the local community during the holidays).

Thus, due to the enormity of this article, I would only go into detail on salary and other payment clauses. Payment clauses usually include fixed payments such as salary and signing-on fees, and variable payments, which are mostly performance-based.

The salary is fixed, let's say £35k per week, and a signing-on fee of £200k paid in installments of £40k per season. Variable payments include appearance fees- payment for making a certain number of appearances or an increase to the fixed salary after making appearances, goal and assist bonus, clean sheet bonus for defensive midfielders, defenders, and keepers; Cup competition progression/victories bonus.

Consequently, variable payments like those above have been used more often during contractual agreements to reduce a player’s basic guaranteed salary. Players may be offered lower basic amounts with the upside of higher variable figures. Whether this becomes more lucrative to a player will depend on whether the performance targets of the player and the club are met.

For illustration purposes: A striker who wants to earn £50k a week to sign for Arsenal, who are aiming to qualify for the Champions League. Instead of offering the player £50k, the club offers

£35k plus £15k for each appearance made (so long as the player is on the pitch for more

than 60 minutes of each game) with a bonus equal to £3k extra per win and £15k per

Week extra uplift, should the club qualify for the Champions League.

If the player doesn’t play, he receives only £35k per week. If he plays and the team wins two games per month, and Arsenal qualify for the Champions League, his weekly salary will be over £70k.

Other Clauses:

1. Release Clauses and Buy-Out Clauses.

Sometimes, player agreements include a release or buy-out clause; a clause in a player’s contract that becomes effective if, for example, the minimum selling figure set out in the player’s employment contract is triggered by a purchasing club. The player will then be entitled to speak to the buying club. The clause may also be triggered if another condition is met – for example, a particular transfer window or because a club does not qualify to participate in the Champions League. The result is that the clause automatically requires a club to accept a specific offer.

Consequently, it is not as easy as stated, depending on the determining variables. Further, certain provisions, such as a Non-disclosure agreement, can hinder the effective trigger of such clauses, as purchasing Clubs could be denied the possibility of knowing the required release fee for a player.

Buy-Out Clauses, on the other hand, are technically different as there is a set amount usually above board, where the player has to buy out his contract, usually paid for by the purchasing club, such as Neymar, whose buy-out clause was settled by PSG to a tune of 222 million, setting a world record.

Agent Fee

It is mandatory that if agents are involved in getting the services of a player, there must be a clause indicating the services and payment for it. An agent is entitled to a commission on a transfer. In large Premier League transfers, the buying club will usually pay the commission to the agent on behalf of the player. This may be 5% of the player’s basic wages, and is usually paid in installments.

Submission Of Details And Filing

Thus, after necessary agreements are made, the clubs involved with the player will submit the various agreements and apply to the league or national football authorities for registration via an electronic portal. This applies to national transfers.

However, for international transfers, I.e, clubs from different national associations, the buying and selling clubs have to submit their request to a system known as “Transfer Matching System,” an online platform developed by FIFA to make sure transfers between clubs in different countries are transparent, properly documented, and traceable. Whether it's Real Madrid signing a player from Santos or a club in Denmark loaning out a midfielder to Belgium, if it’s an international transfer, it has to go through TMS.

Thus, after agreements have been reached by clubs. They are to log into the Transfer Matching separately and input the details of the transfer. This includes everything from:

Who the player is
Whether the deal is permanent or a loan
The start and end dates of their contract
What the player’s salary is going to be
Whether any transfer fee is being paid, and how that’s structured.

Each club must also upload supporting documents: contracts, ID documents, transfer agreements, and even the bank details for payment. The system is designed to catch any inconsistencies. So if Club A enters one fee and Club B enters another, the system flags a mismatch, and the deal can’t proceed until it’s fixed.

After clubs submit their entries, the TMS checks whether the information provided matches on both sides. If there’s a difference, say, in the transfer fee amount or contract start date, it creates what’s called a “matching exception.” This has to be resolved by the clubs before the transfer can move forward.

This process ensures that both sides are on the same page and that FIFA has a reliable record of what’s actually been agreed.

After the clubs agree and confirm everything in TMS, the national football associations get involved. The new club association, where the player is headed, sends a request through TMS to the former association, asking for what’s called an International Transfer Certificate (ITC.)

The former association then has 72 hours to respond. If they issue the ITC, the new association registers the player. If they don’t respond within 72 hours, the system assumes silence as acceptance, and the player can still be registered. If there's a problem, maybe a contract dispute or an unpaid debt, FIFA might have to get involved to mediate.

Once the ITC is received (or the 72-hour window expires), the new association finalises the registration in both TMS and their local registration system. Only then is the player officially cleared to play for the new club.

Until that point, they’re not eligible to play even if they’ve signed a contract, passed a medical, and posted their new shirt on Instagram. For instance, the controversy around Dani Olmo's possibility of playing after signing with Barcelona, but they couldn’t play him due to registration issues, which were later cleared up.

Training Compensation

After registration has been concluded in TMS, information is transferred to FIFA’s Clearing House (based in Paris) automatically gets the player’s historical registration data from TMS to identify eligible clubs who are entitled to training compensation and solidarity fees. When a transfer qualifies for fees. The Electronic Player Passport (EPP) is generated and reviewed by clubs and associations involved. The EPP is a digital document generated by FIFA, showing all clubs where the player was registered between the ages of 12–23 (the period relevant for training compensation and solidarity payments).

This process is activated when a young player signs their first professional contract or makes an international move before the season of their 23rd birthday. This is known as “Training Compensation”.It is a system that rewards football clubs that nurtured the player in their formative years. Under FIFA’s RSTP Annexe 4, the new club is obliged to pay each of the clubs that trained a player, covering the years the player was aged 12 to 21. To ascertain how much is to be paid, the training clubs are paid what it would cost to train the player at the new club (club category) for the period of time he was trained by the training club. There are exceptions, which include if it is an amateur transfer, it is a transfer to a category 1V club, or a waiver is granted by the training club to the buying club, etc.

A Hypothetical Case Study

Let’s say we have a player called Victor from Nigeria:

From ages 12–15, he was trained by a Category IV club in Africa (CAF).

At 16–20, he moves to a stronger setup: a Category II club in Africa.

At 20, he signs his first pro deal with a Category I European club, say, one in Germany.

So who gets paid, and how much?

According to FIFA's Circular 1853, 2023, the category I club in Europe would pay 90,000.

Confederation	Category I Training Cost
UEFA	€90,000 per year

FIFA uses the new club category to calculate payments. So, despite Kofi’s background, the Category I UEFA club pays €90,000 for each eligible year of training.

4 years at the CAF Category IV club (ages 12–15) 4 years × €90,000 = €360,000

5 years at the CAF Category II club (ages 16–20) 5 years × €90,000 = €450,000

Total Training Compensation: €810,000

Solidarity Mechanism: A Slice of the Transfer Pie

Now fast-forward a few years. Victor is 25 and thriving. A top-tier club signs him for €45 million. Then comes the “Solidarity Mechanism”; a lesser-known rule from Annexe 5 of the RSTP that redistributes 5% of the transfer fee back to the clubs that developed the player between the ages of 12 and 23, including the buying European club if it held the player during those years.

Let's take a look, using our player Victor, giving a Year-by-Year Breakdown (FIFA Standard)

Here’s the FIFA Solidarity Distribution Scale:

Age of Player During Training	% of Transfer Fee
12	0.25%
13	0.25%
14	0.25%
15	0.25%
16	0.5%
17	0.5%
18	0.5%
19	0.5%
20	0.5%
21	0.5%
22	0.5%
23	0.5%
Total	5.00%

Each % is applied to the total transfer fee (here: €45 million).
1% of €45 million = €450,000, so:

Final Club Breakdown

Club	Years Trained	% of Fee	Solidarity Entitlement
Category IV (CAF)	Age 12–15	1%	€450,000
Category II (CAF)	Age 16–20	2.5%	€1,125,000
Category I (UEFA)	Age 21–23	1.5%	€675,000
Total	Age 12–23	5%	€2,250,000

Immigration: The Little Devil in the Detail.

You would think that after settling all the necessary agreements and the filing processes, “It is a done deal”. Well, that is true if the player is a citizen of the country where the club he is transferring to is. However, if he is a foreigner, other rules apply, which depend on the receiving country's immigration, FA, and league policy for foreigners.

If this is not sorted, there could be a problem. An instance is Andrey Santos, signed by Chelsea for an £18 million fee in January of 2023, but couldn’t play due to being denied a work permit and a Visa after failing to get the required GBE points to secure a work permit or an exception panel.

In England, the Governing Body Endorsement (GBE) is the gatekeeper. Run by the FA and overseen by the UK Home Office, it is a points-based system that determines whether a non-UK player can be registered to play in the UK. Points are awarded based on international appearances, minutes played in competitive leagues, club status, and even transfer fees and salary. A player needs 15 points for automatic approval; otherwise, the club must argue its case before an Exceptions Panel. Crucially, a young talent from South America, such as Santos, with no senior caps and minimal top-flight experience, will likely fall short. That’s why many clubs now run mock GBE evaluations before tabling an offer.

In Spain, the system is more familiar: clubs apply for a work and residence visa under the general immigration law. However, the catch is the non-EU player limit; La Liga clubs are allowed a maximum of three non-EU players in their matchday squads and a maximum of five players in the squad. There are helpful exceptions, though: players from certain South American countries can acquire Spanish nationality after just two years of residency, and dual nationals (e.g., a Brazilian with Spanish citizenship) don't count against the quota. For instance, in 2005, Messi was granted Spanish citizenship, thus he was no longer counted as a non-EU Player.

Further, Players who come from countries outside the EU that are signatories to the Cotonou agreement, now the Samoa agreement, a treaty between the European Union (EU) and the African, Caribbean and Pacific Group of States, are not considered non-EU citizens. For instance, Reinildo Mandava, who is not considered a non-EU citizen at Atlético Madrid because his country of origin, Mozambique, is part of the Cotonou agreement.

This exception applies to all players from signatory countries who participate in any league within the European Union that has a quota system.

In Germany, by contrast, there is no limit on non-EU players in Bundesliga squads, and the immigration process is streamlined for athletes. Clubs apply for a professional visa through the Federal Employment Agency, showing that the player is an elite-level professional. With that done, the process is often faster than the time it takes to sort out the player's image rights. However, players need to meet the requirements in addition to signing an employment contract. The player must be at least 16 years old, the club must pay the player a gross annual salary of at least €48,300 (as of 2025), and the salary must be equal to at least 50% of the income threshold for statutory pension insurance.

In Italy’s Serie A, an old-school non-EU quota system. Each club is allowed to register only two new non-EU players per season, and only if they’ve released or sold another non-EU player to make room. This forces clubs to be tactical with their international recruitment. Unless the player holds an EU passport or is coming from another EU-based club, clubs must think carefully before committing their precious non-EU slots.

France, on the other hand, has a soft cap of four non-EU players per club, but several international treaties create loopholes. Immigration-wise, the "Passeport Talent" visa is granted to elite athletes based on a professional contract, with fast-track processing via the French Football Federation.

When the Chips are down

What happens when issues arise, such as a transfer failure or disagreements between parties, which could involve club-to-club or player and club scenarios? What occurs if a club fails to fulfill its administrative duties in submitting the required documents, or if a player’s International Transfer Certificate is not issued by their former association? Who does an aggrieved party contact?

Generally, the aspects of Sports Law, especially of cross-border involvement such as international transfers, are governed by Private International Law. As regards international football, the laws governing it, including international transfers, include the Swiss Civil Code, FIFA statutes, Rules on the Status and Transfer of players, FIFA Football Agent Regulations, FIFA Clearing House Rules, FIFA Procedural Rules Governing the Football Tribunal, and FIFA Circulars.

Consequently, conflicts in international transfers usually occur between players, agents, clubs, associations, and FIFA. Thus, the issues of conflict usually arise from employment-related issues, compensation (transfer fees), payment default, training compensation, solidarity contribution, International Transfer Certificate issues, registration, EPP, payment allocation, and general administrative disagreements.

The recognised form of dispute resolution for association football is arbitration; however, other alternative dispute resolution mechanisms may be used by parties, such as negotiations, mediation, and private judging when parties agree, and it is not contrary to the principles in FIFA regulations and statutes. Regarding litigation, parties are generally barred from proceeding, except in employment-related issues (labour law), which parties have opted and agreed to resolve using national laws in civil courts. Additionally, criminal cases are exempt and can be prosecuted in national courts.

Consequently, one of the major bodies of the first instance for conflict resolution between parties is the FIFA Secretariat for basic administrative inconsistencies, which may occur in the Electronic Player Review Process, amongst others. However, when it becomes legally or factually complex, it could be referred to the FIFA Football Tribunal. The Football Tribunal has originating jurisdiction as regards most association football disputes of international dimension, including transfers.

Thus, the Tribunal is divided into 3 chambers, namely:

a) the Dispute Resolution Chamber (DRC);

b) the Players’ Status Chamber (PSC); and

c) the Agents Chamber (AC).

Each chamber has original jurisdiction in varying subject matters defined by the varying rules outlined earlier. The Football Tribunal is headed by a Chairperson with a legal background for a period of four years. The Tribunal is also composed of chairpersons, deputy chairpersons, and members for each chamber who must have a legal background, appointed for four years by the FIFA Council.

The Dispute Resolution Chamber (DRC)

The Dispute Resolution Chamber (DRC) comprises a chairperson and two chairpersons, 15 player representatives appointed at the proposal of players’ associations, and 15 club representatives appointed at the proposal of member associations, clubs, and leagues. For the purpose of exercising any jurisdiction conferred upon it, the chamber is duly constituted if it consists of a judge when the value of the dispute is lower than USD 200,000 (or its equivalent in another currency). For a matter whose equivalent is or higher than USD 200,000 (or its equivalent in another currency), or if the matter is legally complex, at least three judges may

adjudicate. The chamber has jurisdiction in the following subject matter: disputes between clubs and players in relation to the maintenance of contractual stability, disputes between clubs and associations regarding training compensation, solidarity mechanism, EPP disputes, and ITC issues. This chamber possesses the widest jurisdiction in relation to international transfer.

The Players’ Status Chamber (PSC)

The chamber is comprised of a chairperson and one deputy chairperson, and other members deemed necessary by the FIFA Council, appointed at the proposal of member associations, confederations, players, clubs, and leagues. The chamber adjudicates on disputes between clubs over transfer fees or registration that are not related to the training compensation/solidarity mechanism, and disputes that do not fall within the jurisdiction of the DRC. The Players Status Chamber also approves the international transfer of minors, the first registration of a player outside his association, and provides a limited minor exemption (“LME”) to associations. The Chamber is said to be properly constituted if proceedings are presided over by a single or three judges when the matter is deemed to be complex.

Agent Chamber

The chamber is composed of a chairperson, a deputy chairperson, and the necessary number of members as decided by the FIFA Council, proposed by member associations, confederations,

players, clubs, leagues, and football agents. The Agents Chamber has jurisdiction to hear and decide disputes involving football agents, clients, and intermediaries as defined in the FIFA Football Agents Regulations (FFAR). It includes all football agent licensing and representation disputes. The Chamber is well constituted when presided over by a Judge or three judges in complicated cases.

Proceedings at the Football tribunal can be started through the Transfer Matching System in matters such as Training compensation, Solidarity mechanism, or through the FIFA legal Portal. Generally, a cause of action should not exceed two years; however, there are other time limitations. A claim is to be submitted with evidence and submissions by the applicant, and a response and a counterclaim should be submitted within the limited time provided. Further, upon review of submissions without prima facie complications, the FIFA Secretariat can make suggestions that would be binding on parties if accepted or there is no exception within ten days.

After submissions are made and the time elapses, it will be communicated by the FIFA Secretariat to the parties, and decisions can be given based on the written submissions of the parties; however, the Chairperson of the chamber could decide to in exceptional circumstances, that a case is suitable for oral hearing. Deliberations may be held electronically or in person and kept confidential.

After proceedings, the operative part of the decision of the tribunal is communicated to the parties. However, where the decision imposes sporting sanctions against a party, it shall be communicated with the grounds. Further, a party can apply to know the grounds of decisions within 10 days after the decision has been communicated, and after paying the procedural costs as required, else the decision would be binding with no recourse for appeal.

Court of Arbitration for Sports

The Court of Arbitration for Sports is an independent arbitration body recognised by FIFA through its statutes and rules, and its decisions are binding on FIFA and its associations. Primarily, the Court of Arbitration is a court of appellate jurisdiction with regard to disputes from transfers. However, it holds original jurisdiction in matters which parties have agreed upon in writing to be adjudicated by it.

A panel is said to be well constituted if it includes one or three arbitrators, either of original matter or appeal from the FIFA Tribunal. If three, each party nominates one, and a third is appointed by the President of the relevant Division and confirmed by the President. However, in the case of a Sole arbitrator, it is appointed by the President. A party should appeal within 21 days of getting notified of the grounds of the Football Tribunal decision. The process is begun by the claimant with a Statement of Appeal, and the respondent replies with a Statement of Appeal.

Thus, the CAS Panel of arbitrators conducts a full de novo review of the case, meaning it can review all the facts and legal arguments presented in the first instance, and is not limited to legal errors. The Court either annuls, replaces, or remits the decision of the Football Tribunal. CAS appeal rewards are generally to be pronounced within three months after the file is transferred to the Panel.

CAS decisions are final and binding on parties.

Exceptions to CAS Finality:

Though according to FIFA statutes and rules, CAS is the final and apex court as regards football issues, there are exceptions. Awards of CAS can be appealed and challenged at the Swiss Federal Tribunal. These appeals are to be only procedural and due process issues, which include: Improper constitution of the tribunal, jurisdictional challenge, ruling beyond the parties’ claims, violation of the right to be heard or equal treatment, and awards incompatible with Swiss public policy. This appeal has to be done not more than 30 days after CAS has declared awards to the parties.

Further, decisions of CAS can be challenged at the Court of Justice of the European Union (CJEU). Decisions that can be challenged have to be related to economic freedoms, which include Labour and competition laws. It accepts appeals to any judgment by CAS that is contrary to articles 101–102 of the Treaty on the Functioning of the EU (TFEU). Notable cases that have been challenged at the CJEU are the Bosman case and, recently, the Diarra case.

Another alternative body of adjudication is the European Court of Human Rights (ECHR), which accepts appellate jurisdiction on cases that deal with human rights aspects of sports, such as due process, access to justice, or discrimination.

Conclusion

In conclusion, the process of international player transfers is a fascinating and evolving concept. Laws, institutions, and participants continually navigate the changing landscape, balancing international and national regulations alongside global trade. We are hopeful that key innovations will emerge to ensure that all participants are treated fairly and rewarded for their contributions to this system and, ultimately, to the beautiful game of football.

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