Article 17 does not enable a player or club to unilaterally terminate the contract without “Just Cause” but rather, it declares each and every unjustified unilateral termination to be a contractual breach giving rise to a liability to pay compensation.
Where a player is ordered to pay compensation, his new club is deemed under the transfer rules to be jointly and severally liable for any compensation payable, regardless of whether or not that new club is at fault.
While this joint and several liability position tends to favor players, as highlighted by the Matuzalem award discussed below, a major issue arises where the new club is in financial distress, and liability for compensation falls solely on the player.
Article 17 also imposes sporting sanctions for breaches during the “Protected Period”. The “Protected Period” is defined as three entire seasons or years (whichever comes first) from the date the playing contract was entered into by a player under 28, or two seasons/years for players 28 and over.
A breaching player shall receive either a 4 or 6 month playing suspension and clubs in breach (or which induce breach) shall be banned from registering new players for two registration periods. Any club that signs a breaching player will be presumed to have induced the player’s breach unless the club can satisfy the judging authority to the contrary.
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