The "Protected Period" of a Footballer's Contract
A regulation seldom spoken of despite its importance
What is Protected Period?
A key component of contracts which FIFA’s Regulation on the Status and Transfer of Players (RSTP) look to uphold is Contractual Stability. The idea behind contractual stability is strengthened by the provision of “Protected Period”.
“Protected Period; a period of three entire seasons or three years, whichever comes first, following the entry into force of a contract, where such contract is concluded prior to the 28th birthday of the professional, or two entire seasons or two years, whichever comes first, following the entry into force of a contract, where such contract is concluded after the 28th birthday of the professional.” (Term 7, RSTP)
A key term to touch upon, to understand the full impact of Protected Period, is the term “Just Cause”.
Article 14 of RSTP states, “A contract may be terminated by either party without consequences of any kind (either payment of compensation or imposition of sporting sanctions) where there is just cause.;”
A professional football player whose club is a member of a FIFA has the possibility to terminate his contract with his club if he is not paid after two months.
Sporting Just Cause has been mentioned in Article 15 of RSTP.
“An established professional who has, in the course of the season, appeared in fewer than ten per cent of the official matches in which his club has been involved may terminate his contract prematurely on the ground of sporting just cause. Due consideration shall be given to the player’s circumstances in the appraisal of such cases. The existence of sporting just cause shall be established on a case-by-case basis. In such a case, sporting sanctions shall not be imposed, though compensation may be payable. A professional may only terminate his contract on this basis in the 15 days following the last official match of the season of the club with which he is registered.” (Art. 15, RSTP)
Consequences of breach of contract during Protection Period
In every instance of Breach of Contract, the party in breach shall pay compensation. This compensation is calculated based on the provisions of Article 20 of RSTP and Annexure 4 in relation to compensation.
Sporting sanctions are imposed on the party in breach when the party has breached the contract during the protection period. Article 17.3 of RSTP further goes into the specifics of the sporting sanctions imposed on the party in breach when the party is the player.
“…This sanction shall be a four-month restriction on playing in official matches. In the case of aggravating circumstances, the restriction shall last six months. These sporting sanctions shall take effect immediately once the player has been notified of the relevant decision. The sporting sanctions shall remain suspended in the period between the last official match of the season and the first official match of the next season, in both cases including national cups and international championships for clubs…” (Article 17.3, RSTP)
Article 17.4 goes into the sporting sanctions which will be applicable for clubs which are in breach.
“…The club shall be banned from registering any new players, either nationally or internationally, for two entire and consecutive registration periods. The club shall be able to register new players, either nationally or internationally, only as of the next registration period following the complete serving of the relevant sporting sanction…” (Article 17.4, RSTP)
The Hakan Çalhanoğlu case
This case is one of the few examples where the player has had sporting sanctions imposed on them due to breach of contract during the protected period.
In 2011, Hakan Çalhanoğlu was registered with Karlsruher SC and also entered into an employment contract with the Turkish club Trabzonspor, where he was promised €100,000 to join Trabzonspor after his contract with Karlsruher SC expired. However, Hakan Çalhanoğlu chose not to move to Trabzonspor when his contract ended, instead extending his Karlsruher SC contract and later moving to Hamburger SV. Hamburger SV then loaned him back to Karlsruher SC, and he subsequently signed with Bayer 04 Leverkusen.
Trabzonspor filed a claim with the FIFA Dispute Resolution Chamber (DRC) in April 2013, alleging that Hakan Çalhanoğlu breached their contract without a justifiable reason by signing with Karlsruher SC instead of joining Trabzonspor. The DRC found in favor of Trabzonspor in January 2016, imposing a four-month ban on Hakan Çalhanoğlu.
Both Hakan Çalhanoğlu and Trabzonspor appealed to the Court of Arbitration for Sport (CAS). The CAS Panel concluded that Hakan Çalhanoğlu did breach the FIFA Regulations by terminating the Trabzonspor Contract without just cause. However, the Panel also found that Trabzonspor did not meet due diligence requirements in the matter. Hakan Çalhanoğlu's appeal was dismissed, and he was required to pay €100,000 to Trabzonspor as reduced compensation for the breach of the Trabzonspor Contract. The suspension imposed by the DRC was reinstated with immediate effect.
Conclusion
The provision of Protected Period allows FIFA, through the DRC to provide an enforcement mechanism to protect parties from breach of contract. With Contractual Stability being protected not only by monetary but sporting sanctions as well, it creates a provision which has teeth and can prevent the abuse of power from both player and club.