What are federative and economic rights of the football player?

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When football player signs a contract with a club two kinds of rights are created – the federative and the economic ones.

Federative rights belong solely to the club and give them the right to have that player playing for them while the contract lasts. Economic rights arise when players have a contract with a club. If you’re out of contract player (free-agent) you don’t have federative rights thus you don’t have economic rights. These rights state that the club has to be compensated if the player is transferred before his contract expires. When you see the headlines player X is transferred to club A for XY euros means that his economic rights were valued at XY which is the amount of money his former club was willing to let him go for and to revoke the contract between them.

For example; Radamel Falcao‘s recent move to Mónaco from Atlético Madrid for approx. £50 million. This is how much the economic rights of the player are valued in order to release him from the contract he has with Atlético.

Football players must authorize the selling of his own economic rights if the club wants to, otherwise the agreement to sell a share of them will be considered null and void. Venture FC will be scouting the world for the best undiscovered talent and will buy shares of the economic rights expecting to sell them in the future with a great profit. Players will be available to the Venture FC community to be invested just like in a kick-starter project.

This blog post does not give any legal advice; its sole intention is to provide some information about what kind of rights arise when players sign a contract with a club. Please contact a sports lawyer if you need advice.


About the author:

Hugo Castro, co-founder of Venture FC – Kickstarter for football players, 3-time entrepreneur, former Portuguese football club CFO. Worked also in media and banking on sales, management and marketing roles.


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