26/10/2022
To: All NPFL Football Clubs.
ATTENTION: All Footballer Stakeholders.
CIRCULAR: CAPITAL FLIGHT AND LOAN AGREEMENTS WITH AMATEUR CLUBS
In a bid to reset the operations of the Nigeria Professional Football League and put it in line with the mandate given to the Interim Management Committee (IMC), we urge ALL CLUBS to refrain from engaging in the unlawful practice of loaning players from Amateur clubs and Football Academies, as this practice is contrary to the provisions of the extant rules of the game. Note that Rule B9.32 of the Framework and Rules of the Nigeria Professional Football League out rightly prohibits this practice by providing that;βNo Club of the League shall enter into a Loan or Temporary Transfer agreement (as the Transferee Club) with an amateur club, a football academy, an individual or any entity other than a professional football club (i.e. a club in the Nigeria Professional Football League or the Nigeria National League).βThis practice, in addition to being illegal, contributes to capital flight from the Nigeria Professional Football League by ensuring that clubs are denied their due reward for developing professional footballers, as they are excluded from benefiting from any future transfer of the player(s) involved under this illegal arrangement. The global football ecosystem has a reward system that favors clubs at every level. Thus, while professional clubs benefit from transfer fees, academies and amateur clubs benefit from training compensation and solidarity mechanisms. However, this disruptive practice only serves to disrupt the system by robbing professional clubs of their due. Furthermore, this practice is also contrary to extant provisions guarding against Third-Party Influence and Ownership of Playersβ Economic Right (TPI/TPO) as contained in Articles 18ibis and 18ter of FIFA Regulations on the Status and Transfer of Players, as well as Rule 9.34 of the Framework and Rules of the Nigeria Professional Football League.Consequent upon the above cited provisions of the laws of the game, ALL CLUBS are directed to desist from this practice, as the league organizers will impose severe sanctions on any professional club that attempts, purports, or continues to carry on this illegal practice of loaning players from Amateur clubs and Football Academies or entering into contracts that encourage the perpetuation of Third Party Ownership of playersβ economic rights.Note also that claims bothering on financial disputes arising from player transfer between clubs do not affect the status of the player involved, as Article 18bis of the FIFA RSTP prevents any person or entity from acquiring the ability to influence the independence of clubs in employment and transfer-related matters. Thus, a transferor club cannot βrecallβ a player already transferred, but can however pursue claims for the enforcement of the contract transferring the player. In a similar vein, Article 18ter FIFA RSTP makes provision against Third-party ownership of playersβ economic rights by providing that;βNo club or player shall enter into an agreement with a third party whereby a third party is being entitled to participate, either in full or in part, in compensation payable in relation to the future transfer of a player from one club to another, or is being assigned any rights in relation to a future transfer or transfer compensationβ.Hence no person or entity can hide under the guise of being agents or player intermediaries to claim ownership of a playerβs economic rights.Consequently, ALL football entities (including Football Academies, Amateur Clubs and Player Intermediaries) are also urged to take note of the above provisions, and ensure continued adherence to existing rules and regulations by refraining from entering into any such illegal and unenforceable contracts in the future.The above is for your information and immediate compliance.
Yours faithfully,
Davidson Owumi
Chief Executive/Head of Operations, NPFL.
CC: TMS Officer, Nigeria Football Federation
