Termination of contract without fair cause in football: consequences and penalties

Breaking a contract in professional football is not like giving up a common job. When a player or a club terminates a contract without just cause, economic and sports consequences are activated that can change the course of a race or paralyze the activity of a club during windows of entire transfers.

Article 17 of the RETJ is the rule governing these consequences. Diarra case (C-650/22) of October 2024, the regulatory framework is in transition: FIFA adopted a interim regulatory framework amending several aspects of the calculation of compensation and the burden of proof.

In this article I explain everything: the types of termination, the consequences for players and clubs, how the compensation is calculated, what changed with the Diarra case, and what remains in force without modifications.

What this article covers

The 4 types of termination of contract in the RETJ
Art. 17: consequences of breaking up without just cause
Calculation of compensation: principle of “positive interest”
Compensation in favor of the player vs. compensation in favour of the club
Sports sanctions: the player (4-6 months) and the club (2 windows)
The protected period and its impact
Solidarity responsibility of the new club
The Diarra case and the interim regulatory framework (existing since January 2025)
Practical examples

The 4 types of termination in the RETJ

Before entering into the consequences, it is necessary to understand that the RETJ contemplates four forms of early termination of a contract, each with different consequences:

Type	Article	Consequences
Reasonable cause	Article 14	None. Without compensation or sports sanctions, it applies when one of the parties can no longer reasonably be expected to continue the relationship.
Unpaid wages	Article 14a	The player terminates with justified cause if they owe him 2+ months salary. Club pays compensation to player According to art. 17, p. 1. No sports sanctions to the player.
Justified sports cause	Art. 15	The player played less than 10% of the official matches in the season. No sports sanctionsbut compensation may be required.
No Justifiable Cause	Article 17	Compulsory compensation + possible sports penalties (if termination occurs during the protected period).

Article 13 establishes the basic principle: a contract between a professional player and a club may be terminated only on expiry or by mutual agreement. Any termination outside these circumstances is analyzed under articles 14, 14bis, 15 or 17, depending on the circumstances. And article 16 adds an additional restriction: a contract cannot be unilaterally terminated during a period of competition.

Art. 17: the consequences of rupture without just cause

When a contract is terminated without justifiable cause — either by the player or by the club — RETJ Article 17 establishes three sets of consequences:

1. Compulsory compensation (Ap. 1)

In all casesthe party who fails to comply must pay compensation to the party concerned. " positive interest": the compensation must place the injured party in the position in which it would have been found if the contract had been normally fulfilled.

The new wording of Article 17, paragraph 1 (provisional regulatory framework in force since January 2025) provides that the compensation is calculated taking into account the injury suffered, in accordance with the principle of positive interest, in consideration of the particular facts and circumstances of each case, and with due regard to the legislation of the country concerned."

What changed with the interim frame? Prior to the Diarra case, Article 17 listed specific calculation criteria (remuneration of the existing and new contract, remaining contract time, amortized club expenses, if within the protected period, and the "specificity of sport"). eliminated those specific criteria The intention is to calculate the compensation in an "objective and transparent" manner without the elements that the EUJ considered problematic.

2. Sports sanctions (Ap. 3 and 4)

Sports sanctions are the most feared consequences — and those that distinguish sports law from ordinary labour law. They apply only when termination occurs during the protected period.

Penalties to the player (Ap. 3)
Restriction of 4 months to play any official game. In aggravating circumstances: 6 months. Sanctions are suspended between the last game of a season and the first of the next (except if the player participates in an international competition with his selection in that period). Outside the protected periodThere are no automatic sports sanctions.

Penalties to the club (Ap. 4)
Prohibition of registering new players (national and international) during 2 registration periods It applies if the club terminated during the protected period, or if the new club induced the player to fail. The club can only re-register after full compliance with the penalty.

3. Solidarity responsibility of the new club (Ap. 2)

The new player club can be declared Responsible for solidarity payment of compensation if it is established that induced the player to breach his contract.

Key change in the interim framework: Before the Diarra case, there was a presumption of induction by the new club (the new club had to prove that it did NOT induce the player). reverses the burden of proof: it is now the complaining club (the previous club) that must prove that the new club induced the player to fail. The same applies to the imposition of sports sanctions on the new club for induction (ap. 4).

The protected period: the concept that changes everything

The protected period is a central concept of the RETJ which determines whether termination without just cause generates sports penalties in addition to compensation.

When the contract was signed	Duration of protected period
Before the player meets 28 years	3 full seasons or 3 years from the entry into force of the contract (whichever occurs first)
After the player meets 28 years	2 full seasons or 2 years from the entry into force of the contract (whichever occurs first)

The protected period restarts When a contract is renewed extending its duration, this is important: if a player renews at 3 years, the protected period clock starts from zero.

What didn't change with Diarra: The Diarra case did not delete The explanatory notes of the interim framework are clear: "this letter does not call into question the existence of a protected period or the threat of a sports penalty against a club or player for a break of contract during the protected period." What was temporarily suspended were certain disciplinary enforcement measures linked to Article 17.

How compensation is calculated: practical scenarios

Stage 1: The club terminates and the player has no new contract

Example: A Turkish club unilaterally terminates the contract of an Argentine player without justifiable cause. The player had 2 years more contract with a salary of €10,000 per month. He does not find new club.

Player compensation: The starting point is the residual value of the terminated contract. If you had 24 months × € 10,000 = € 240,000. Other contractual benefits (prims, bonuses, etc.) that you would have received may be added to this.

Scenario 2: Club quits and player already signed new contract

Example: Same case as the previous one, but the player signs with a Greek club for € 8.000 monthly, 18 months.

Reduced compensation: Residual value of the terminated contract (€ 240.000) minus what the player will win in the new contract during the remaining period of the previous one. The new contract covers 18 months to € 8.000 = € 144,000. But only the 24 months remaining from the original are compared, so it is deducted € 144,000. Reduced compensation: € 96,000.

If the termination was by Dues due (art. 14bis), the player is also entitled to a additional compensation of 3 to 6 monthly wages (€ 30,000 to € 60,000 in this example). The total compensation can never exceed the residual value of the terminated contract.

Scenario 3: Player terminates without just cause

Example: A Brazilian player, with 2 years remaining in a Mexican club, decides to go unilaterally to a European club that offers him the triple salary.

Compensation to the club: It is calculated according to the principle of positive interest, considering the damage suffered by the club. The criteria that the Football Court has historically used include: the residual value of the contract, the value of the player's new contract, the unamortized signing expenses and the replacement cost. The new club can be held jointly responsible if it induced the player to leave.

Sports sanctions: If the termination occurred within the protected period, the player faces 4 months without playing (or 6 in aggravating circumstances).The new club may receive prohibition of registration by 2 windows if it is proven that it induced the player.

Within the protected period
Compensation + Sports penalties (4-6 months for the player, 2 windows for the club). Maximum consequences.

Outside the protected period
Only compensation: No automatic sports sanctions. Disciplinary measures may be imposed if the termination was not notified in advance (15 days after the last game of the season).

The Diarra case and the interim regulatory framework

On 4 October 2024, the Court of Justice of the European Union delivered a judgment in the case C-650/22 (Diarra)challenging specific elements of Article 17 of the RETJ and the STI procedure as potentially contrary to the free movement of workers within the EU.

In response, FIFA — in consultation with FIFPRO, ECA, WLA and UEFA — adopted a interim regulatory framework on 22 December 2024, in force since 1 January 2025. This framework amends specific aspects of the RETJ while continuing the dialogue on a long-term reform.

What changed

Appearance	Before (pre-Diarra)	Interim framework (since January 2025)
Calculation of compensation	Specific list of objective criteria (remuneration, time remaining, amortised expenditure, protected period, sport specificity)	General principle of "positive interest": injury suffered + facts and circumstances of the case + legislation of the country
Solidarity responsibility of the new club	Presumption by the new club (should prove that it did NOT induce)	Burden reversal: the previous club must prove that the new club induced the player
Sports penalty for induction to the new club	Presumption similar to solidarity	Burden reversal: the previous club must test the induction
Definition of “justified cause”	No explicit definition in the text	It is codified: "any circumstance in which one of the parties can no longer reasonably and in good faith be expected to continue the contractual relationship"
CTI and contractual disputes	In practice, STIs were not blocked by disputes, but regulatory clarity was lacking	It is expressly clarified that no association can invoke a contract dispute to block the issuance of a STI

What DID NOT Change

The explanatory notes to the interim framework are emphatic in that several fundamental principles were not affected for the Diarra case:

FIFA’s legitimacy to issue binding global rules on contractual stability
The principle that contracts must be carried out (art. 13)
The concept of a protected period and related sports penalties
The possibility of contractually agreeing on the amount of termination indemnity
The need for STI for international transfers

Temporary suspension of certain disciplinary measures

On 25 November 2024, the chairman of the FIFA Disciplinary Commission issued a letter temporarily suspending certain disciplinary measures linked to provisions affected by the Diarra judgment.

Disciplinary measures against players involved in the execution of article 17 compensation
Disciplinary measures against trainers by Article 6 of Annex 2
Disciplinary measures against clubs based on joint responsibility under article 17, paragraph 2

Important: This suspension is temporary The sanctions already imposed were not affected, and the possibility of imposing new sports penalties for termination during the protected period remains in force — what was suspended are the enforcement measures specifically linked to the provisions challenged by the judgment.

What you need to do before you quit

If you're a player and you want to quit

Determine if you have justified cause 14). If they owe you 2+ months of salary, Art. 14bis gives you a clear path — but first you must enter into writing within 15 days.
Check if you're there. inside or outside the protected period. Sports sanctions apply only inside.
If you played less than 10% of the matches, evaluate article 15 (justified sports cause).
Not terminated during a period of competition (Article 16) — may be an aggravating circumstance.
Check with a sports lawyer before sending any notice.

If you're a club and you want to quit

Evaluate if there is a justified cause. Document any conduct of the player who bases it.
Please note that terminating without justified cause during the protected period can generate prohibition of registration 2 windows.
If you terminate without cause, the compensation to the player is calculated on the residual value of the contract.
If the player is pregnant, on maternity leave or parental leave, termination is presumed without just cause (art. 18quater) with aggravated compensation.

This guide is based on the RETJ July 2025 edition, the interim regulatory framework adopted on December 22, 2024, the Explanatory Notes on the interim regulatory framework, and the Commentary on the RSTP of FIFA. The interim regulatory framework is of a transitional nature and can be modified as a result of the ongoing dialogue between FIFA and its interest groups. This guidance is informative and does not replace the advice of a lawyer specialized in sports law.

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Termination of contract without fair cause in football: consequences and penalties