Volume 27, Issue 3 (2023)
CLR 2023, 27(3): 162-190 |
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Ghanavati J, Javar H, Zoghi Asgharpour S. Analyzing the Concept, Status and Nature of Buy-out Clause in Professional Football Player’s Employment Contract; the FIFA Regulations and Iranian Law Perspective. CLR 2023; 27 (3) :162-190
URL: http://clr.modares.ac.ir/article-20-71468-en.html
URL: http://clr.modares.ac.ir/article-20-71468-en.html
1- Associate Professor in Private Law, Faculty of Law, College of Farabi, University of Tehran, Qum, Iran , ghanavaty@ut.ac.ir
2- Associate Professor in Private Law, Faculty of Law, College of Farabi, University of Tehran, Qum, Iran
3- M.A. Student in International Trade Law, Department of International Trade Law and Energy, Faculty of Law, College of Farabi, University of Tehran, Qum, Iran
2- Associate Professor in Private Law, Faculty of Law, College of Farabi, University of Tehran, Qum, Iran
3- M.A. Student in International Trade Law, Department of International Trade Law and Energy, Faculty of Law, College of Farabi, University of Tehran, Qum, Iran
Abstract: (418 Views)
As for the buy-out clause, if the player pays the buy-out fee, he/she can terminate the contract prematurely without specifying any cause. The current research principally aims to analyze the legal nature of the buy-out clause and what are its legality conditions in FIFA regulations and Iranian law. Regarding the nature of the buy-out clause, different perspectives have been raised. From a perspective, the buy-out clause can be classified as a liquidated damage clause and is subject to prohibition of exorbitant and unfair liquidation damage provision. According to another perspective, the nature of the buy-out clause is a contractual right. The buy-out fee is in consideration for the exercise of contractual rights. Currently, the latter opinion is preferred by FIFA. Under Iranian law, basically, the nature of buy-out is valid and acceptable, but according to the Iranian Football League’s new charter of registration of employment contracts for the season 2023-2024, the use buy-out clause in the contract of Iranian players is prohibited. The findings of the present study with the analytical-descriptive approach indicate that the nature of the buy-out clause is a conditional opt-out right. Termination by this method should be deemed to be based on the parties’ (prior) consent. The player can trigger the buy-out clause and terminate his/her contractual relationship unilaterally and prematurely upon the unconditional and complete payment of the buy-out fee.
Article Type: Original Research |
Subject:
Comparative Law
Received: 2023/09/9 | Accepted: 2023/12/9 | Published: 2023/12/20
Received: 2023/09/9 | Accepted: 2023/12/9 | Published: 2023/12/20
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