"No more Alvarez cases": the FIFA rule changes

From 1 January 2027, FIFA will amend Article 17, which governs release clauses and breaches of contract. Once it comes into force, the new regulation will require competitions to adapt their contracts to a model in which the price for the unilateral termination of a player's contract is reasonably proportionate to the circumstances of the transfer.

The aim is to stop either party using a disproportionate sum to effectively block a player's departure. The change follows several transfers collapsing because of high release clauses or because some clubs refused to negotiate the sale of a player who wanted to leave, as happened this summer with Julián Álvarez and Atlético Madrid.

The main aim of this new rule is to curb disputes between clubs and players when contracts are terminated, as happened in the well-known "Lass Diarra case". Players' representatives have backed the change introduced by FIFA. Until now, compensation was assessed on a case-by-case basis, with no defined methodology or clear criteria for the exact amount, leading to wildly uneven outcomes.

FIFA, world football's governing body, have therefore decided to amend the article to make it more transparent, objective and predictable. The parties can now agree compensation contractually, guaranteeing full compensation for the damages suffered. The new rule covers two scenarios: contracts that include a clause and those that do not. For contracts with a clause, compensation will equal the agreed sum unless it is manifestly excessive and unfair. Contracts without a clause are more complex, because the amount is calculated on the basis of the following criteria: the residual value of the contract, unpaid remuneration, the value of the services provided by the player, the loss of a potential transfer, replacement costs and other proven damages.