By Andrew Warshaw and Samindra Kunti
September 18 – FIFA have sanctioned Belgian second-tier club FC Seraing with a two-year transfer ban and a fine of $155,000 after it was revealed that investment fund group Doyen had added €300,000 to the club’s budget in exchange for 30% of some players’ rights.
In December 2014 the FIFA Executive Committee banned the practice of TPO, but allowed for a transitional period from January 1 to April 2015 to appease clubs and players, who protested over the possible consequences of the new rule.
Earlier this year Seraing had joined Doyen in challenging FIFA and UEFA with a complaint that outlawing TPO went against a number of EU competition regulations. The claim was also centered around the argument that TPO came into effect “against the advice and opinion of the vast majority” of those consulted by FIFA itself.
The Brussels Court of First Instance supported FIFA’s and UEFA’s stance that TPO is detrimental to the game and squashed the claims of Doyen and Seraing.
The practice of economic rights of players being shared amongst private investors and investment funds was widespread in South America and southern European countries but growing concern over money streams and actual transfer fees led to the ban.
FIFA stated in a press release that “in the case of FC Seraing, the Disciplinary Committee found the club to have breached articles 18bis and 18ter of the Regulations on the Status and Transfer of Players by having sold part of the economic rights of several players to a third party and by having entered into contracts that enabled the third party to have influence on the club’s independence and policies in transfer-related matters.”
Earlier this year Seraing had joined Malta-based investment fund Doyen in challenging FIFA and UEFA with a complaint that outlawing TPO went against a number of EU regulations. The claim was centered around the argument that TPO came into effect “against the advice and opinion of the vast majority” of those consulted by FIFA itself.
The Brussels Court of First Instance supported FIFA’s and UEFA’s stance that the TPO is detrimental to the game and booted the claims of Doyen and Seraing.
FIFA and UEFA have compared third-party investors to loan sharks, who force players to move clubs solely for profit-taking.
UEFA’s head of legal affairs Alasdair Bell told Insideworldfootball back in July: “The activities of these people are more akin to loan sharking than any form of investment.
“It’s nonsense to suggest TPO allows smaller clubs to be competitive. If anyone ever saw one of these so-called TPO investment arrangements, what you’d see are all kinds of penalties written into deals.”
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