Brazil loses in FIFA's third party ruling

After a push by Europe, FIFA has outlawed third-party ownership of footballers, creating headaches in South America - particularly Brazil.

A belated move by FIFA to outlaw the practice of investment companies owning stakes in footballers will hit the Brazilian league hard, with many players' rights part-owned by third parties.

FIFA president Sepp Blatter said world football's governing body would back a campaign by European counterpart UEFA to ban so-called "third party ownership" (TPO), whereby firms have stakes in players' economic rights.

The practice is banned most notably in the English Premier League, but does exist in European leagues, including Spain and Portugal.

And it is very common in South America.

A notably controversial case came with the 2006 transfer to England's West Ham United from Brazil's Corinthians of Argentinian striker Carlos Tevez, whose registration was 'owned' by two offshore companies.

The Premier League fined West Ham over the case and that of compatriot Javier Mascherano -- who briefly joined the Hammers before moving on to Liverpool -- for infringing league rules over their contracts.

As many Brazilian clubs are struggling with debts the third-party ownership practice remains common.

"Of the 20 clubs in the Brazilian top flight, 80 percent of players (rights) belong to businessmen or investment funds," the daily O Globo reported on Saturday.

The paper added that if FIFA abolishes TPO "that will mark the end of an era."

Blatter said on Friday in Zurich that "we took the firm decision that TPO should be banned. But it cannot be banned immediately, there will be a transitional period and a working group... is working on that. It is very important."

UEFA chief Michel Platini had last March called on FIFA to act on the issue.

The transitional period will see a series of meetings to ensure it runs "as smoothly as possible," Brazilian lawyer Marcos Motta, working on studies to end the practice, told O Globo, which saw South American sides as "the big losers" from FIFA's move.


Share
2 min read

Published

Updated


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world