What is third party ownership in football?

Third-Party Ownership (TPO) in association football is the ownership of a player’s economic rights by third-party sources. In return they are entitled to a percentage of a player’s future transfer fee.

Why do clubs loan players?

A club might seek to loan out a squad player to make a saving on his wages, or a first team player to regain match fitness following an injury. Some players are loaned because they are unhappy or in dispute with their current club and no other club wishes to buy them permanently.

What does third party ownership mean?

Third-party ownership of players is whereby private investors, it can be an individual, company, or fund, own part of a player’s economic rights.

Why is third party ownership banned?

The Premier League said TPO caused questions to be asked about “the integrity of competition” and also the impact it could have on the development of young players. Because of the fallout from this case, and the issues it raised, the Football Association banned TPO at the beginning of the 2008-09 season.

Can loaned players play against parent club?

Yes. A player on loan can play against its parent club under the UEFA rule, as long as the host club has applied for, and received an express permission from the parent club allowing or permitting their player on loan to play against them.

What is third-party ownership in football?

Third-party ownership is mostly associated with football in South America, where it is extremely common for agents and investors to become involved with clubs and players.

Why do Premier League clubs have to buy out third parties?

Premier League and Football League rules require clubs to buy out any third parties which claim to own the economic rights in a player before their transfers are permitted in the top flight. The ban was introduced at the start of the 2008-09 season following the Tevez affair.

What are the benefits of part-owning a player in football?

Clubs selling a player they only part-own receive less of the transfer fee – but, on the upside, if they are partnering with a company to sign a player, they would pay a lower fee initially. Did you know? That could benefit a club such as Everton, who are struggling to find funds to sign players.

What did Allardyce say about third-party ownership?

The Telegraph newspaper says it has footage from August of Mr Allardyce meeting men claiming to represent a Far East firm where he appears to say third-party ownership rules can be avoided. The 61-year-old has yet to respond to the allegations, while the FA has asked to see the paper’s filmed recordings.