The "first option" for a player.
Today's entry will focus on the clause known as the "first option" for a player. I used quotation marks because the clause of priority in contracting a player, commonly used, functions under the above-mentioned, incorrect name. I have already written on the blog about the nomenclature used in relation to transactions in professional sports, proper contracts of the buy-sell type, and why I consider it inappropriate (here).
The "first option" clause, or more correctly, the priority clause for contracting a player, is often used in agreements concerning changes in the club affiliation of football players, most commonly in temporary transfers. According to the regulations of both FIFA and the PZPN, a player transfer between clubs can be either definitive or temporary (I wrote about the concept of transfers here).
A temporary transfer means that the club where the player is registered (the transferring club) enters into an agreement with another club (the acquiring club), under which for a strictly defined period, not longer than the duration of the contract with the transferring club and not shorter than until the next transfer window, the player will represent the acquiring club. In such a situation, if the duration of the contract with the transferring club is longer than the contract with the acquiring club, the player returns to the transferring club after the expiration of the agreement. It should be added that just like in the case of definitive transfers, the player's consent is absolutely necessary to conclude a temporary transfer agreement.
Temporary transfer agreements can bring benefits to both the transferring and acquiring clubs. The former, at least partially, shifts the obligation to pay the player's salary to another entity, and the latter can benefit from the services of a player whose definitive transfer would not be economically feasible for the club. The player, on the other hand, gains the opportunity to rebuild form and have regular appearances. However, temporary transfers often serve another purpose. They allow clubs to determine if the player will adapt to the new club and prove useful to the team. In such circumstances, when the player meets the expectations of the acquiring clubs, they often reserve the aforementioned "first option" to acquire the player.
The clause allows for the unilateral conclusion of a definitive transfer agreement by submitting a relevant statement by the acquiring club. Such a clause should specify the time, form, and manner of submitting a declaration of exercising the option to contract the player, as well as the amount of compensation due to the transferring club. With a properly constructed clause, the acquiring club that submits a declaration within the specified period to exercise the "first option" is entitled to sign a contract with the player. And here we come to the crucial issue, which, as recent events in the transfer market in Poland have shown, not all clubs remember: the change in club affiliation must be approved by the player, as he is always a party to the professional sports contract.
There are no legal obstacles for such consent to be given when concluding a contract with the player at the time of signing a temporary transfer. Therefore, the player may give consent to enter into a contract with the club after the loan period on specified terms if the club exercises the "first option." Such assurance can also be provided in a separate document. However, if the club has not secured itself in the indicated manner, the effectiveness of the "first option" clause depends on reaching an agreement with the player. If the player does not consent to signing a contract with the club, the club has no possibility of keeping the player. It is worth remembering this when drafting a temporary transfer agreement.
Fot: markus spiske via Remodel Blog / CC BY