Third Party Ownership: First Order of Business

My white paper is about the practice of third party ownership in the game of soccer and the need for it to be eliminated.  Third party ownership is when an outside investor purchases a stake in a player’s economic rights.  Once that player is transferred, the third party owner get his percentage worth of the new transfer fee. For example, I could purchase a 50% stake in a player in Brazil for $1 million.  After a couple of years of performing well, he could be transferred to another team in Europe for a transfer fee of $4 million.  Since I have a 50% stake, I would receive $2 million dollars of the $4 million.  My initial investment of $1 million has grown by 100% and provided me with superior returns.  This sort of trading of a player’s value is interesting, but it causes trouble for the sport.  Recent controversies and new rules being implemented have put the practice on the chopping block, and I am recommending UEFA, Europe’s governing body of soccer, should be the first to ban the practice outright.  The allowance of third party agreements does not support the integrity of the game, and puts the sustainability of teams, clubs, and competitions in jeopardy.  If you are a soccer fan, this paper will inform you of some of the behind the scenes issues with third party ownership you probably never knew existed.  You will also be able to learn about some of the new financial regulations occurring in Europe and some of the implications they may have.  Overall, third party ownership is a controversial practice that seems to benefit some upfront, but causes more harm in the long run.


One thought on “Third Party Ownership: First Order of Business

  1. Pingback: Is Third-party ownership good or bad for football? | Time Added On


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