Transfer compensation is not always due. In Belgium the answer depends on the status of the athlete.
In Belgium, athletes are subject to their status either by the law of 24 February 1978 on the employment contract for paid sportspeople or by the decree of 24 July 1996 establishing the status of non-paid sportspeople.
The criterion on the basis of which the scope is determined is the salary that the athlete receives. This wage limit for athletes from within the European Economic Area is determined annually by Royal Decree for the period from 1 July to 30 June. For the period July 1, 2017 to June 30, 2018, this wage limit – regardless of whether it concerns part-time or full-time work – is EUR 10,200.00. Wages include fixed wages, competition bonuses, winning bonuses, signing fees, housing and the use of a car or mobile phone.
If the athlete earns more than EUR 10,200.00 / year, the law of February 24, 1978 applies. If the athlete falls below this wage limit, he or she is a non-professional athlete who falls under the aforementioned decree of 24 July 1996. However, there are exceptions for athletes who fall below the wage limit but are still bound by an employment contract. The latter is a consequence of a ruling by the Constitutional Court.
Under Article 3.1 of the decree, the non-professional sportsperson has the right to terminate the agreement between himself and his sports club annually. However, this termination must be done by registered letter and in principle between June 1 and June 30. This period – which must always be one month – can, however, be changed for sports clubs after approval by the Flemish government.
Such termination means that the athlete may freely transfer to another sports club – even as a professional athlete. There are no possibilities of resistance against this.
Article 3§2 of the decree is clear in the case of a regular termination of an agreement between an amateur athlete and his sports club. The payment of any compensation following a transfer is prohibited.
It should be noted that an employment contract for paid sportspeople can only be validly concluded from the end of full-time compulsory education at the earliest. In football, basketball, volleyball and cycling, this minimum age has also been increased to 16 years for a part-time employment contract and to 18 years for a full-time employment contract. Below this age, people are by definition covered by the decree of 24 July 1996.
In conclusion, it can be stated that every amateur athlete and every young athlete who has not yet reached the end of full-time compulsory education can change sports club freely and free of charge every year, provided that a valid termination has been given.
Any provision in a regulation that is contrary to the decree of 24 July 1996 and that aggravates the rights of non-professional sportspersons is null and void.
In certain cases, training compensation may nevertheless be due for young athletes. In addition, the questionable figure of reinforcement is sometimes used in the sports world. The parents hereby undertake to pay a certain amount (compensation) to the sports club if their child does not sign a new contract with the same sports club at the end of compulsory education or upon reaching the age of majority.
When a transfer without transfer compensation is possible
Two situations account for most cases. The first is a contract that has run to its end: once the term expires and no extension is agreed, the player is free and nothing is owed to the former club for the move itself. The second is a clause in the contract that sets the conditions on which the player may leave, whether that is a fixed buy-out amount or a right to leave within a defined window.
Outside those two, a move without payment normally means the parties agreed to it. A club can release a player it no longer wants on the payroll, and that release can be worth more to the club than the compensation it gives up. What matters is that the agreement is recorded, because registration of the player with the new club depends on documents the former club has to provide.
Compensation for training is a separate question and none of this covers it. Even where no transfer compensation is due, a mechanism that compensates the clubs which trained a young player can still apply under the rules of the international federation. In football that mechanism sits in the FIFA regulations. Check it before you assume a move costs nothing.
Questions about this? Do not hesitate to contact us via the contact form or via sport@everest-law.be.