Footballers completing their transfer activities either on or prior to deadline day move are being urged to not forget the “mundane” points of a deal.
Work permits, image rights and even, where your children go to school, are all elements of a last-minute move that can be pushed to the side when football talent is handed a multi-million-pound contract with moments to go before the window slams shut.
Despite the pressure a footballer might be feeling to get a deal done quickly, legal experts at Knights suggest it’s important all potential ramifications are considered.
Family Partner at Knights, Vandna Sharma, said:
"If you consider those moving into the UK from abroad, there’s going to be a big impact on the everyday elements that support their livelihood – whether that’s where they live, what tax they pay or whether any pre-nuptial agreement they have with their spouse is valid here. It’s important all these things are assessed properly.
“Football is constantly changing so it’s important you think both long and short term when it comes to the impact. Are your children moving with you? If so, where do they go to school? Are you going to rent or buy a property here? If you’re planning on getting married here, have you ensured it’s compliant with English law? There are so many things that can easily be forgotten so it’s important you have the right advisors in place to ensure nothing is missed.
“To add, if you are looking to move and relocate the family, players will be thinking whether that is the right approach for them or whether interim arrangements need to be considered if they are separated. If they don't see the children, what arrangements are going to be put in place and, if they are relocating the family, where are the children going to be legally resident or go to school? Transfer deadline day ends the week schools go back so time is quite short to ensure your children aren’t impacted too widely.”
Senior Associate, Daniel Baker, adds:
“There are all sorts of matters and issues that footballers and their families need to consider at the time of transfer. There's naturally a lot of focus on the commercial side and what they're going to be paid in terms of salary but it’s important to scrutinise all details of the contract and proposal.
“There’s a growing tendency, certainly at the elite level, with certain clubs looking to re-structure remuneration by heavily incentivising pay though a more elaborate and detailed bonus scheme instead of the traditional basic salary offer. For example, bonus milestone triggers might be met on qualification for certain competitions or league placements. If presented with offers from different clubs, it’s vital a player and their agents take the time to consider all components of the deal’s structure and particularly considering whether a recalibrated emphasis on remuneration through incentivisation schemes would be economically acceptable.
“The detail of what the contract says is super critical, but there are also bits and pieces around it which the player may not be thinking about – such as insurance. Most clubs will provide some sort of basic level of cover, but I’d say it’s also prudent for players to consider private critical injury cover (such as protection against career ending injury) for instance. A football career has a limited timespan so it’s good practice to ensure you’re covered for all eventualities.
“On image rights many clubs will want to use and exploit a players’ image and likeness for commercial purposes, and it is important both sides are clear on their intentions in this regard. The player will need to consider whether they should, if they have done so already, assign their image rights to a dedicated image rights company. We’d encourage all players to take advice to ensure that they have an appropriate image rights structure in place which will suit their needs.
Sharma adds:
“When it comes to image rights and looking at the income from that, it’s important to work out how that is going to be applied for a player’s family and ensuring that, it doesn't just run away with them.
"For example, it might be prudent to consider renting for a little bit and getting established in a new country before any decisions are made that might have a longer-term impact. Many footballers are young so it’s important they have the right support system in place to make savvy decisions which don’t negatively impact them should their circumstances change again at short notice.”
Concluding, Baker said:
“Players cannot ignore the more mundane elements of a transfer deal. Understandably, the focus is on what's the salary going to be and the length of the contract, but you’ve really got to consider everything.
“Footballers with multiple nationality options should carefully undertake a pre-transfer assessment of establishment and citizenship decisions. There are certain countries that have restrictive rules in terms of dual citizenship / work permits and this was recently shown to be a complex issue in the Netherlands. Here a number of Dutch-born players sought to represent countries such as Indonesia and Suriname at international level. However, concerns arose as to the players potentially acquiring a new nationality with consequences under Dutch law – particularly in relation to the individual’s work authorisation and immigration status.
“So, there are matters such as those which might appear to be mundane and administrative, but they can have very far-reaching consequences. So again, that really is the benefit of having an extended network of professionals - not just the agent but lawyers, accountants and tax advisors.”
If you need advice on the legal, family, immigration or commercial considerations of a football transfer, contact Daniel Baker or Vandna Sharma today.