The revised 2027 FIFA Regulations on the Status and Transfer of Players (RSTP) represents the biggest overhaul of the global transfer system since 2001, following the landmark 1995 European Court of Justice ruling in the Bosman’s case.

Following the ruling of the Court of Justice of the European Union (CJEU) in the case of Lassana Diarra that several provisions of the FIFA RSTP, specifically Article 17, violated Article 45 on freedom of movement and Article 101 on restriction of competition under the Treaty on the Functioning of the European Union (TFEU). FIFA adopted an interim version of the RSTP with effect from 1 January 2025 in response.

It then established a committee comprising representatives of FIFA, FIFPRO, the European Football Clubs Association (EFC), and the World Leagues Association (WLA), with the constructive participation of UEFA and CONMEBOL, to propose amendments to bring the transfer system into alignment with the Court’s decision. After months of negotiations, on June 10, 2026, the Bureau of the FIFA Council approved a new RSTP set to enter into force on January 1, 2027. 

This article sets out the key changes introduced by the revised 2027 FIFA RSTP and their implications for agents, clubs, and the transfer system as a whole.

KEY CHANGES IN THE REVISED 2027 FIFA RSTP

1. The Ban on Bomb Squads

One of the key changes is the prohibition of the practice of isolating unwanted players from the squad, commonly known as the “bomb squad.”This has been a common practice in football, especially when clubs want to force out players they no longer want. Chelsea did exactly this with Axel Disasi, Raheem Sterling, and others.

Under Article 17 of the revised FIFA RSTP, a club found guilty of isolating a player from the rest of the squad faces a penalty of up to six months of that player’s salary.

This means clubs alienating players from training now risk sporting sanctions. In addition, no club may:

a) abuse the registration or deregistration of a player as a means of pressure;

b) withhold a passport from a player;

c) unduly evict a player from their home

2. Players to Receive 5% of Their Transfer Fee

This is the most significant reform of the transfer system. Despite the high increase of the transfer fees over the years, with transfer market projected to witness its first €1bn transfer by 2031, the selling clubs have been the one to pocket all the money recoup from selling the player, with the player receiving nothing out of the product that his talents generate.

Read: The €1bn Bank of America Projection and What It Means for Football Agents. 

Article 21bis of the revised 2027 FIFA RSTP states that any player earning EUR 150,000 per year or below will be entitled to receive 5% of the total fixed transfer fee, paid directly by the selling club, whenever the player is transferred internationally.

To illustrate: if a player earns £100,000 annually and is sold for £3 million, he is entitled to 5% of that fee. This represents £150,000 paid directly to him, regardless of what he earns at his new club. 

3. Calculation of Compensation and Liquidated Damages Clauses.

One of the laudable reforms in the 2027 FIFA RSTP is the granting of contractual freedom for parties to include liquidated damages clauses from the outset of a contract.

A liquidated damages clause allows the parties to agree in advance on the amount of compensation payable if a specified breach or premature termination occurs. This is fundamentally different from a buyout clause. Read our article on understanding the difference between liquidated damages clauses and buyout clauses.

For players earning EUR 150,000 per year or less, the breaching party must pay compensation equal to the residual value of the breached contract, unless exceptional circumstances justify a lower amount. Where the parties have not agreed on a compensation amount, the player is entitled to claim full compensation, accounting for the residual value of the contract and the damage suffered.

While clubs receive full compensation for the damage caused, taking into account the value of the player’s services of the player, a lost transfer fee or value, replacement costs, and any other damage caused. 

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