Soccer clubs and players will be free to negotiate indemnifications

In case of international transfers, the indemnifications will have no limits. In national transferences, however, this compensation can reach 2 thousand times the player’s wage.
08/02/2011 00h10

The Plenary has approved, on Tuesday, the text of deputy José Rocha for the Provisional Presidential Decree 502/10, to which he has incorporate new rules of professional relationship between athletes and sports entities provided in the Bill 5186/05, of the Executive.

The soccer players’ contracts shall provide for indemnifications for the athletes and the club, with values freely agreed, but with limits. If the player is transferred to other club during the term of the contract, or if he resumes activity in other club in a 30 months term, the indemnification will be of up to 2 thousand times the average amount of the wage, in case of national transfers. For the international transfers, there will be no limit, according to provided in the text approved of the Provisional Presidential Decree 502/10.

The club shall pay compensation to the player in case the contract is terminated due to lack of wage, dismissal without reason or due to other hypothesis provided in the labor legislation. This compensation will be of, at the minimum, the total of the monthly wages that the athlete was entitled until the expiration of the contract. And at the maximum, of 400 times the monthly wage.

Businessmen
To prevent the action of unscrupulous businessmen, the writing of deputy José Rocha determines that are empty of full right the clauses of contracts signed with agents that imply demand, aiming commission, of part or total of indemnification received from the clubs in transfer.

The contract, also, cannot establish obligations considered abusive or disproportional, or establish rules on the management of the athlete's career under training and under 18 years old.

Surrogacy
The text of José Rocha intends also to cover the speculative negotiations of players, known as “surrogacy”. After a national transference, the new club can only transfer the athlete abroad after three months. If even so it wants to make the transaction before this term, it shall pay, to the former club, the indemnification clause amount for international transfer set in the player’s original contract.

Solidary Responsibility
The clubs’ managers shall answer, in a solidary and unlimited manner, for the consequences of the illicit acts they practice. The same applies to the acts of reckless management, or the ones contrary to what the entity bylaws provide.

Social Welfare
Another change of the senators in the Pelé Law approved by the Plenary specifies that the payments due by the clubs to the Federation of Professional Athletes Association (FAAP) and to the Brazilian Federation of Soccer Professional Athletes (Fenapaf) shall be monthly.

These payments vary from 0.2% to 0.8% of the monthly wages of the athletes and of the national and international player’s transfers amounts.

The resources shall be used for the social and educational welfare services of the professional athletes, former athletes and athletes under training.