Brazil bans third party ownership in line with FIFA rules

Third-party ownership of footballers will become illegal in Brazil from May 1, the country's domestic governing body CBF) said in new transfer regulations published on Tuesday.

The move aims to bring Brazil into line with a FIFA ban on the practice that comes into effect on the same day.

Third-party ownership occurs when the transfer rights of players are wholly or partially owned by the player or a company, instead of only the player's club.

The practice is already illegal in some European leagues but common in Portugal, Brazil and other South American countries, where investors buy up players in the hope of making a profit when they are sold to big name clubs.

Brazilian football is bankrupt with the top 20 teams owing more than five billion reals ($1.89 billion) and clubs and investors say the practice keeps clubs alive by injecting cash into the game.

Some fund managers have said they will seek a way around the ban, perhaps by buying small clubs who loan their best players out to give them a shop window.

Existing contracts will be recognised but any deals signed between now and May 1 involving a third party will only be valid for one year, the Brazilian Football Confederation said.    

($1 = 2.6425 Brazilian Reals)

(This image is used for representational purposes only)

Photograph: Paulo Whitaker/Reuters