New Regulations on Early Contractual Termination in Argentina

New Regulations on Early Contractual Termination in Argentina

This article briefly examines the new regulations passed by the Argentine Football Association in agreement with the Argentine Player´s Union in relation to the early termination of contracts. The new rules are quite important since it establishes the procedure and costs associated to the early termination of employment contracts in Argentina and reduces the costs and levies arising from it.

AFA Bulletin no. 5576, 12 December 2018

 

Argentina, always in the top 3 list of player’s exports since TMS started to offer data, is arguably the country with the highest costs related to the transfer of a football player: over 25% of the transfer value including 15% for the player, 7% for social security taxes, 2% for an AFA fee, 0.5% for the Player’s Union fee and stamp duty that varies depending on the jurisdiction but can reach 1.2%.[1] To this amount, solidarity payments (national and international) are also added.

In the last years, as in many other countries, the use of “buy-out”...

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