Published in LawInSport, 30 November 2016

It is fairly common to have a penalty clause inserted in a football-related contract (e.g. a player-transfer contract) for the event of non-compliance with its terms. Due to the fact that contractual penalties are not explicitly regulated in the FIFA Regulations on the Status and Transfer of Players (RSTP), Swiss law applies in the majority of the contracts (with an international dimension) and defines / interprets the modalities of such penalty clauses.