After the Ban: The Financial Landscape of International Soccer After Third-Party Ownership
Hall, W. Tyler
In September 2014, the Fédération Internationale de Football (FIFA)—the worldwide governing body of soccer—declared its intent to ban the contentious practice of third-party ownership (TPO). A TPO agreement is between a soccer club and a third party—an investment fund, corporation, sports agent, or private investor—by which the third party purchases an economic stake in future profits from the sale of one or more players at the club. The third party believes the player has the potential to improve and be sold to another club for a high enough fee to make a profit on the initial investment. The profits made selling economic stakes in future transfers are a crucial resource for cash-strapped soccer clubs around the world.