Overview
- The reform was reported on Saturday and Sunday and will enter into force on 1 January 2027, applying to contracts signed from that date and to renewals but not to existing deals.
- Under the new rules, compensation for contract termination will be calculated case by case using factors such as remaining contract value, unpaid wages, the estimated cost to replace the player, salary and current playing time.
- The change was driven by high-profile transfer disputes, most notably Julián Álvarez’s blocked move from Atlético de Madrid, which media reported featured a release clause around $580 million.
- FIFA says the aim is to stop clubs from setting disproportionate buyout numbers that effectively trap players while preserving fair compensation for clubs that can show real losses.
- The reform follows months of talks with player agents, clubs and federations and could reshape how clubs and players set and negotiate release clauses and transfer valuations in future windows.