Key Clauses

1. Salary – The remuneration package a player receives is an important clause, however there are also other details to consider for players and agents in relation to remuneration:

• Whilst the salary will be specified in the contract, there are certain events which may impact the salary. It is important to note whether the salary will increase or reduce at any point during the contract? If so, players and their agents should be aware as to exactly what will trigger an increase or reduction in the player’s salary during the contract.

• Bonuses – These can be performance related or incentive based. Provision is made at clause 8.2 of Schedule 2 of the contract for a player to receive bonuses and incentives under a club scheme. These details have to be included in the contract or attached to it. It is important for players to be aware what bonuses they are entitled to, what triggers the bonus payments and exactly when will the bonuses become payable. There may be certain conditions in relation to the bonus, for e.g. does the player still need to be at the club at the time the bonus payment becomes payable for the bonus to be paid?

• For e.g in the case of Kylian Mbappe, there was a reported loyalty bonus inserted into his contract. The clause would be activated if Kylian Mbappe was still a PSG player on 1^st August 2023, with the first part of the loyalty bonus payment becoming due from PSG.

• If there are any other payments that the Club will be paying the player.

2. Duration – This is an important clause stipulating the length of the contract. Whilst this may seem like a straightforward clause, there are many variables to consider for players and agents other than the agreed fixed term:

• Is there an options clause to extend the contract? Consideration will need to be given as to whether this is in unilateral form, i.e. In favour of one party or whether both the club and player have the option to extend the contract.

• Is there an automatic extension clause in the contract? This relates to the contract automatically extending upon the expiry of the fixed term based on a specific event happening. If so, this clause needs to be carefully drafted to ensure that it is specified in clear terms.

• For e.g. in the case of Kylian Mbappe, there was a unilateral extension clause inserted into the contract he signed in the summer of 2022, which gave him the sole right to exercise a one year extension to 2025, with the said deadline being 31 July 2023.

• Will the same terms apply during the extended term of the contract or will there be different terms?

3. Image Rights – The standard form employment contract will include provisions that allows clubs to use the players’ image for club commercial activities. Players may be required to make appearances and undertake other promotional activities as part of the clubs commercial obligations with sponsors. This will be set out in clause 4 of the contract.

For high profile players, the club will enter into a separate image rights contract and the player will receive a separate income for this. This contract is entered into at the same time as the playing contract. A key consideration in assigning the image rights to the club is whether this will have any limitations on the player partnering with commercial brands in their personal capacity.

4. Club’s obligations towards the player – This should be specified in the contract. The obligations of the club will include arranging medical treatment for the player, allowing the player to represent their national team when required and ensuring that a safe work environment is provided.

5. Player’s obligations towards the club – These obligations will include attending matches, a duty to keep fit, participate in training, maintaining professional conduct to avoid harming the club’s reputation and maintaining professionalism.

6. Release Clauses – This is an undertaking from a club to accept a transfer offer for a player if it receives a bid over a certain amount and potentially with additional qualifying conditions such as failing to qualify for the Champions League or having been relegated. It is important to know the conditions surrounding the release clause, if any, for it to be activated. For e.g. in the 2023 summer transfer window, Chelsea attempted to activate the release clause of Crystal Palace player, Michael Olise. However, Chelsea reportedly did not know the conditions of the release clause in the contract, which had to be activated by the player himself by notifying Crystal Palace of the interest of the buying club. As Chelsea went directly to Crystal Palace first, the release clause was not activated.

7. Termination – The rights of the player to terminate the contract are set out in the termination clause. It is important that there is not a wide scope for the club to terminate the contract and that termination provisions are also included for the player.

Before entering into a contract with your club, get in touch with BR Sports so we can review the same and ensure that your rights are protected.