Professional football contracts: legal essentials and key clauses

When a new football signing is announced, the true significance lies in the contract behind the scenes. A football contract is crucial to both player and club, setting out the foundation of their relationship as an employer and employee. It includes elements such as the agreed salary, contract duration, and clauses that outline the responsibilities and expectations of each respective party. Understanding these elements is critical for anyone involved.

Financial

As an employment agreement, a professional football contract establishes a base salary and how it will be paid, whether weekly, monthly or on an alternative basis.  The amount can vary from contract to contract depending on the club's finances and the respective player's skill and desirability.

An illustration of this in practice is shown by the difference between the highest-paid player in the Championship (the second tier of English football), Matty Longstaff, who earns £24,000 per week, compared with Manchester City's Kevin De Bruyne (who plays in the Premier League, the top division in English football) who receives £400,000 weekly.

Aside from the core salary, the contract may set out the terms under which a player receives a bonus. At a club level, this could be an increase in salary if the team wins matches, qualifies for a tournament or gets promoted. Individually, bonuses could involve an increase for scoring, assisting or, in the case of a goalkeeper, keeping a clean sheet.

Contracts can also include a signing-on bonus and/or a loyalty clause as an incentive to remain at the club. Pierre-Emerick Aubameyang received £18.2 million just for joining Arsenal FC in 2013 and Kylian Mbappe not only had a €100 million signing on fee, but was also promised a substantial loyalty bonus in 2022 to remain at Paris Saint-Germain.

Contract duration

The duration of a contract is a significant point for both parties. On average, most contracts are between three and five years long and are influenced by factors such as a player's skill, age, and the club's financial position.

Longer-term agreements have, however, become more common, with examples like Chelsea FC's seven-year contract with Cole Palmer and Manchester United FC's six-year contract with Harry Maguire. Both players even have an option in their contract to stay an additional twelve months should they wish, providing a framework for future negotiations.

Transfer provisions

Release clauses are found in most Premier League contracts and allow players to transfer to another club if a stipulated fee is met. Enzo Fernández, for example, had a release clause of €105 million, which Chelsea FC activated to secure his transfer from Benfica. These clauses can also be tailored to more specific situations, such as the clause in Robert Firmino's 2016 contract with Liverpool FC. This was exceptional, as it allowed him to be released to any club except Arsenal, a significant rival to the Reds at the time.

Separately, buyout clauses give players the power to leave their contracts in an alternative manner to termination. These are more common in La Liga but can be found in some Premier League agreements. Manchester City FC's Erling Haaland is an example of this, being party to a £200 million buyout fee in his 2022 contract. Most contracts will include either one or both of these clauses along with any loan provisions and their relevant recall options. These additions allow for a player's career progression and the protection of both parties' interests.

Intellectual property and sponsorship clauses

Intellectual property clauses address the use and ownership of a player's likeness and image rights. These often go hand in hand with sponsorship clauses and are used by a club for marketing and promotional purposes. These rights mean players must pose for social media posts, feature in adverts and wear set kits with sponsorship when asked to do so.

Traditionally, however, football boots and gloves are exempt from this rule, allowing players to pursue their own personal sponsorship.

The aforementioned rights can be used at the club's discretion for digital content outside of social media.

In 2020, Zlatan Ibrahimović questioned who authorised using his name and likeness in the FIFA game. EA Sports responded that these rights were obtained through an agreement with his club, AC Milan; Zlatan had likely signed his image rights to AC Milan, which was then reflected in the club's agreement with EA Sports.

Expectations

Players often have set expectations regarding their training, conduct and match appearances in their contracts. These will include maintaining their physical fitness and abiding by the rules of the game (e.g., not wearing jewellery during matches and complying with their manager's orders).

To enforce expectations on conduct, contracts often include a gross misconduct clause with grounds for termination if a player engages in prohibited behaviours. Such behaviours include gambling, excessive drinking and insubordination. An example is Mario Balotelli, who, after a tumultuous time playing for Milan FC, had a good conduct clause inserted into his 2014 agreement with Liverpool. This meant the contract would be terminated if his behavioural conduct did not meet their expectations.

Likewise, a contract will also set out the expectations and obligations of a club, such as carrying out medical examinations, providing insurance coverage for injuries, providing suitable training facilities, and giving a set period of holiday leave. There may also be an agreement to allow players to play for their international teams when necessary.

Contact our sports law solicitors today 

Our solicitors specialise in a wide range of sports law areas. We provide straightforward legal advice on contracts, governance, regulatory requirements, commercial property, employment law, image rights, trademarks, and branding.

We work with clubs and players at all levels of the game, including men's and women's teams, academies, and professional leagues.

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