Early termination of player contracts in professional football
Emin Balci • 9 november 2025
A player who hardly plays, a club eager to part ways with an expensive reserve player, or a relationship between club and player that has lost its sporting purpose. These are common situations in professional football. From a legal perspective, terminating a player contract is very different from ending an ordinary employment relationship.
This article briefly explains how Dutch law interacts with the international framework of the FIFA and the KNVB (Royal Dutch Football Association). It focuses on the legal framework governing unilateral termination: situations where either the player or the club seeks to end the contract early, without a transfer of the player taking place.
Anyone seeking to end a player contract mid-term enters a legal playing field where national law and international sports regulations meet an unique intersection of labour law, association law, and sports law.
This article briefly explains how Dutch law interacts with the international framework of the FIFA and the KNVB (Royal Dutch Football Association). It focuses on the legal framework governing unilateral termination: situations where either the player or the club seeks to end the contract early, without a transfer of the player taking place.
Anyone seeking to end a player contract mid-term enters a legal playing field where national law and international sports regulations meet an unique intersection of labour law, association law, and sports law.
Because the KNVB, as the national association, is part of the global FIFA structure, Dutch professional clubs and players are (indirectly) bound by FIFA regulations through their KNVB membership.
Within this international framework, FIFA’s Regulations on the Status and Transfer of Players (RSTP) stipulate that player contracts must, in principle, be respected for their agreed duration (Article 13 RSTP).
Early termination is only allowed if there is a valid reason (just cause
or sporting just cause).
To safeguard the principle of contractual stability, FIFA adds an extra layer of protection: the protected period, during which breaches of contract are sanctioned more severely.
The protected period
Under Article 17(3) RSTP, the first years of a player’s contract receive special protection:
- For players under 28 years of age, the protected period covers the first three seasons or three years after signing.
- For players aged 28 or older, it covers the first two seasons or two years after signing.
During this protected period, FIFA treats any unilateral breach of contract as a serious violation of contractual stability. A player who terminates without valid reason can be suspended for up to four months (or six months in aggravating circumstances).
A club that terminates a contract without valid reason risks a registration ban for two transfer windows. In addition, the new club of a player who breaches his contract may be held jointly and severally liable for compensation under Article 17(2) RSTP.
The protected period is therefore a cornerstone of the system. It ensures that newly signed contracts cannot be terminated without a valid reason and that clubs are not suddenly exposed to sporting or financial instability.
When is there a valid reason?
As mentioned, exceptions to FIFA’s rule against premature termination exist. A unilateral termination is permissible only where there is just cause
or sporting just cause.
Just cause
Just cause exists when one party commits a serious breach of the contract, for example:
- consistent non-payment of salary;
- violation of essential obligations;
- misconduct (e.g., physical violence; discrimination, harassment); or
- circumstances making it unreasonable to expect continuation of the contract.
This concept aligns with Dutch civil and employment law principles (Articles 6:265, 7:671b and 7:671c BW). In such cases, the aggrieved party may terminate the contract without being liable for compensation.
Sporting just cause
Sporting just cause is a special right available only to players. Article 15 RSTP allows a player to terminate the contract at the end of a season if the player has participated in less than 10% of the club’s official matches during that season.
The player must exercise this right within 15 days after the final match of the season. In such case, no compensation is owed to the club.
The purpose of this rule is to prevent players from being 'frozen out' without realistic opportunities for playing time.
In practice, both the KNVB and FIFA apply this provision very strictly. Only in exceptional circumstances is a claim of sporting just cause accepted.
Legal and practical risks
For clubs, unilateral termination without valid reason can trigger significant financial liabilities under Article 17 RSTP.
The amount of compensation is determined based on factors such as:
- the remaining contract duration;
- the agreed salary, and
- any investment made in the player.
In cases of international transfers, the new club can also be held jointly liable for the compensation owed by the player (Article 17(2) RSTP).
Players are exposed to comparable risks, as a unilateral termination without just cause may lead to suspension and substantial financial liability.
Strategic implications for clubs and players
For sporting directors, executives, and club lawyers, understanding this legal framework is essential. How a contract is terminated affects not only the club’s financial position but also its ability to recruit new players.
Choosing the wrong termination route can lead to lengthy disputes. In practice, there are three legally safe options (assuming the player is not being transferred to another club and that either the club or the player seeks to terminate the contract earlier than the end date of the contract):
- Mutual termination: via a settlement agreement in which all claims are waived.
- Termination due to just cause: supported by thorough documentation and clear evidence of contractual breaches.
- Termination due to sporting just cause: available only under the strict conditions of Article 15 RSTP.
Without solid legal grounds, early termination is a high-risk move: both financially and from a regulatory perspective.
Key takeaways:
Because civil and sports law are closely connected, contractual stability is the rule and termination the exception.
Anyone operating in this system, whether a player, club lawyer, or sporting director, must understand the legal boundaries to protect sporting interests without violating contractual obligations.
In a market where a player’s value is determined not only on the pitch but also on paper, one rule always applies:
⚽ You don’t 'win' a contract with strikers, you 'win' with strong legal play.
Het beëindigen van een spelerscontract juridisch iets heel anders dan het beëindigen van een reguliere arbeidsovereenkomst. Een speler die nauwelijks speelt, een club die een dure reserve wil laten vertrekken of een samenwerking die sportief is vastgelopen. Het zijn veelvoorkomende situaties in het betaald voetbal.