1 April 2020
Women in Football board member Liz Ellen appeared on TalkSPORT discussing the FIFA summer transfer window
The world is experiencing a major crisis as industries globally register major losses due to lockdown measures implemented to try and control the coronavirus pandemic.
The football industry has suffered a similar fate, with competitions around the globe suspended indefinitely. UEFA Euro 2020 has also been pushed back 12 months and all football in England below the three divisions that make up the National League have ended, with all results to be expunged. It means there will be no promotion or relegation in these leagues.
The same has happened to devastating affect in the women's game below the Women's Super League and Championship level.
With most key revenue streams affected for clubs, the financial squeeze is being felt as staff, players and management still need to be paid. Non-matchday and matchday staff have also been significantly impacted.
The logistics for when football does return are mind-boggling as some players will be out of contract, fixtures need finalising, promotion and relegation issues have to be resolved, the list is endless.
Women in Football board member Liz Ellen, who is Head of the Sports law practice at Mishcon de Reya LLP, guested on talkSPORT radio to discuss these topics along with the key question: Should FIFA should be allowed to move the summer transfer window?
Hugh Woozencroft, the show's host pointed out that players including Pedro, Willian, Adam Lallana and David Silva, whose contracts are set to expire on 30 June, would be free to move clubs from 1 July - and that they might already have a deal in place with.
Below is a full transcript of the conversation between Hugh, Liz, Daily Mirror columnist Darren Lewis and former Wolves and Charlton striker Chris Iwelumo.
"These are no doubt exceptional circumstances," said Liz. "FIFA are entitled to change their rules but that can lead to them making alterations in the transfer windows, the schedule of International matches. One thing I don’t think they can change though, is the employment contract, which is governed by the law of whichever country they are in. Like in England, it is clear 30 June is the date when these contracts terminate."
Hugh: If you were advising legally a player, whose contract does expire this summer and what they want is to leave even if the season hasn’t finished. Do you think you would legally stand a good chance saying they can walk away?
Liz: I do think they are in strong position. I do sympathise with FIFA, UEFA, the Premier League, all of these leagues are trying to solve an impossible position at the moment but legally whichever road they go down, they are going to come up with disputes. In this particular part, the issue is clear that if a player has a contract that expires on 30 June, than that’s when they expect to be able to leave. Many of them will have contracts that begin with other clubs on 1 July, if they are pre-signed with another club then that contract is already in place.
Chris: The power falls on the players, which I totally agree with, but surely if the club offers the players that are out of contract who don't have a pre-contract, an extended contract, it's down to them to accept or not, but then I am sure all the leagues around the world are simultaneously at a stop at the minute so they all going to be extended. So surely a player with a pre-contract who is signed with a different club can actually then go after 30 June and join that other club in another league that’s already been extended. I don’t think that works, does it?
Liz: None of these situations give a perfect outcome and ultimately common sense and goodwill will determine what happens to any of these scenarios. Clubs will lose some players; they’ll gain some players. I think there will be much greater pragmatism down the leagues where players understand that if they don’t compromise then their clubs may simply go out of business. But at higher levels, when we talk about international transfers for example, then I think the player, the agents, the clubs, they’ll look to be a lot more ruthless in their approach when the opportunity arises.
Darren: Just a follow on from what Chris said, although as you rightly say, if a player's contract ends at the end of June they should feel entitled to move. Surely the whole thing is fraught with chaos. If you've got a situation where leagues have not been completed, for example in the Premier League, where you’ve got nine games left to play. There’s a team who acquire a player from another league who is out of contract and just add them to their squad, given that they have got nine games to play maybe in September or October. Legally I hear what you're saying, it’s just unworkable!
Liz: I agree that this is such a difficult and complex circumstances. For example, a situation where La Liga decides to cancel this season and start their new season as normal in August or September, If you’re meant to be joining one of those clubs then you wouldn’t want to be prohibited from leaving your current club when your contract ends and joining the new club. Alternatively, you may decide that your loyalty is for the current club and you want to see the season out, then if the transfer window doesn’t enable you to move when the close season could be in this country, you’re restricting your future prospects. And that’s why I think that there is obviously opportunity in every situation for players and clubs to come to an agreement on how these scenarios should work. Those would be individual discussions, I don’t think there is a collective rule that can be applied across all the players everywhere because so many different people will find themselves in different positions.
For example, if you are a player who is out of contract this summer and have nowhere else to go, then you may be delighted to have this chance to spend another three months on your previous salary there. Whereas you maybe a player who has ambition to move to a bigger club this summer, you don’t want to be spending those extra three months playing risking injury, risking your future transfer falling through. So, all of these situations have to be dealt with on a one-by-one basis.
Hugh: Liz, it feels like there could be like a minefield ahead, loyalty bonuses due to be paid. Agents I am sure would be trying to agitate for a move if they think they can make a lot of money for their players. Some clubs have asked their players to take a pay-cut. Now you mentioned goodwill could play a major factor in this one and I am sure it will be, but for those players who have been asked to take a pay-cut, legally, have their contracts been broken in a position where some might be able to walk away from a club?
Liz: I think they’ve simply been asked to take that approach that doesn’t lead to breach of the employment agreement. The closest scenario is, I think, where (and it has happened before), you’ve seen clubs going into administration. For example, Portsmouth a few years ago; the players who were at the club had to agree to a reduction in their salaries in order to allow the club to continue. Quite simply if they didn’t all come to agree with this, the club wouldn’t be able to continue. So, there is that example of where players have had to put aside their own personal situations and do something else for the greater good. But this is on a totally different scale.
With thanks to Utkarsh Bhushan, Professional Masters in Football Business candidate at The Football Business Academy.
To listen to the show in full click on the link here.
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