The Three Lions Manager Sam Allardyce affectionately called “Big Sam” on a mutual consent was relieved of his post as the Manager of the English senior team after a newspaper sting caught him agreeing a £400,000 deal to advise foreign investors on how to avoid FA rules on Third Party Ownership. He was on a salary of £3 million per annum and was in charge of the National team for 67 days. He has since be replaced temporarily by Gareth Southgate who is also the Manager for the U21 side of the Three Lions.
Questions will further be asked how grievous an offense like this could cause Big Sam his role. Here is what you need to know about the Third Party Ownership.
This, in association football is the ownership of a part or full of a player’s economic or financially rights by third party sources such as football agents, sports management agencies, hedge- funds or other investors. It worth noting that this differs from Co-ownership where the player’s transfer rights are shared with another club.
Third Party Ownership practice us common in Brazil and Argentina where many clubs are insolvent and financially limited. Here businessmen and other investors buys shares in the economic rights of young players and often cover the cost of their training and accommodation. In return they are entitled to a percentage of a player’s future transfer fee.
In April, 2015 the Federation of International Football Association (FIFA) announced the banning of third party ownership and specifically prohibited either clubs or players from entering into economic rights agreements with third party investors. The ban took effect May, 2015.
” Third Party Ownership raises concerns over the integrity of the competition and introduces risks of criminal activities into sports “. European Parliament ; November 2015
At an Annual General Meeting in June 2008, the English Premier League drafted need rules L34 and L35 to outlaw any third party ownership of players from the beginning of the 2008/2009 season stating that third party owners are not permitted to avoid they put it ” materially influence” a club’s policies or the performance of its team. In July, 2015 a Belgian court rejected an appeal against the banning of third party ownership.
Several criticisms have emerged on TPO’s and thus became more vibrant in English football after the arrival at West Ham United of Carlos Tevez and Javier Mascherano from Brazilian club Corinthians in August 2006. One high ranking English official called it ” an edifying trade in young people that rips the heart out of clubs which try to develop players. Gordon Taylor further described it as if it’s like trading in Human beings and it’s destabilizing for outsiders to have a financial interest in a player.
Many defenders of the practice describes it’s a way of sharing the burden of investment in the player. The super agent Pini Zahavi himself associated with TPO’s and the companies that invested in players said ” In England they don’t understand it at all. It’s easier to buy a player who you are unsure about for £10million if you are sharing the risk with a partner. Now if the player becomes top top drawer and is sold for £30 million, then of course then you may feel stupid only to own half. But if the player turns out to be merely average or a failure, if he cannot even be sold, you will say fantastic the disaster was not only mine.
Businessman Kia Joorabchian says it is a way of bringing outstanding players to clubs that would not be able to afford them ordinarily so they increase the competition. It’s a little bit of a loan deal between two clubs except it’s a loan deal between a club and a third party. However, lawyer Jean-Loius Dupont claimed it was illegal after the Premier League introduced rules against third-party ownership. The current FIFA president Giani Infantino has liked it to modern day slavery.
Examples of Third Party Ownership that has transpired previously known the game of football include the following
In 2004 Media Sports Investments Fund (MSIF) bought 51% of Corinthians in a 10year deal. By 2006 MSI was listing as its investments not just Corinthians itself but also the players – Carlos Tevez, Marcelo Mattos, Gustavo Need, Javier Mascherano, Carlos Alberto, Marinho, Raphael Maura and Nilmer. Typically the transfer of Tevez and Mascherano to West Ham United.
In 2007, Anderson transferred from Porto to Manchester United and as part of that deal Porto paid the agent Jorge Mendes a reported £4 million for his share of Anderson’s registration. Mendes was reported to have contributed 20% of £3.75 million Porto paid for Anderson’s from his previous club, Gremio to sign the midfielder in 2006.
In June, 2010; it was reported that Kia Joorabchian had secured a 50% share in the Brazilian midfielder Ramirez then at Benfica, but subjected to transfer from across Europe including the London club Chelsea. The deal was part of an agreement reached with Benfica President Luis Filipe Vieira the previous year at the time of Ramirezes transfer to Benfica from Cruzeiro in Brazil. A further 30% of the player’s right was reportedly owned by Joorabchian’s associate Pini Zahavi. Ramirez moved to Chelsea at a reported fee of £17million with Kia Joorabchian to receive £6million of it.