FIFA change rules to prevent more cases like Julián Álvarez.

FIFA want to ensure situations like Julián Álvarez’s are not repeated. That is why world football’s governing body is changing the rules on contract termination. The new Article 17, which will come into force on 1 January, is intended to make the system fairer for players whose clubs refuse to negotiate a transfer.

The amendment

From 1 January 2027, FIFA will revise Article 17, which regulates release clauses and breaches of contract. Once it takes effect, the new regulation will require competitions to adjust their contracts to a model in which the amount for the unilateral termination of a player’s contract is reasonably proportionate to the circumstances of the transfer.

The Álvarez case

The objective is to stop either side from using a disproportionate amount to effectively prevent a player from leaving. The change comes after several transfers broke down because of high release clauses or because certain clubs refused to negotiate the sale of a player who wanted to move, as happened this summer with Julián Álvarez and Atlético Madrid.

The “Lass Diarra” case

The main purpose of this new rule is to reduce disputes between clubs and players when contracts are terminated, as happened in the well-known “Lass Diarra case”. Players’ representatives have supported the change introduced by FIFA. Until now, compensation was decided case by case, with no defined methodology or clear criteria for fixing the exact amount, which led to highly uneven outcomes.

The amendment

FIFA, the governing body of world football, have therefore decided to modify the article to make it more transparent, objective and predictable. The parties can now agree compensation within the contract, guaranteeing full compensation for the damage suffered. The new rule covers two situations: contracts that include a clause and those that do not. For contracts with a clause, compensation will be equal to the agreed amount unless it is clearly excessive and unfair. Contracts without a clause are more complicated, 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.