Author: Dr. Esteban Carbonell O’Brien 🇵🇪
Lawyer

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Published and translated by the firm Winter – Dávila & Associés
Paris, 5 Mars 2024                                                                 

Summary

In this article we will make a brief analysis of the controversy that Club Universitario de Deportes is having with Héctor Chumpitaz’s academy, from which the academy demands the fulfilment of the payment of economic rights according to the agreement signed with Club Universitario, for the transfer of the player Piero Quispe.

Keywords: Controversy, economic rights, agreement.

Abstract

In this article a brief analysis will be made of the controversy that the University Sports Club is having with the Héctor Chumpitaz Academy, of which said academy requires a Payment of Economic Rights according to an agreement signed with the University Club, for the transfer of player Piero Quispe.

Keywords: Controversy, economic rights, agreement.

Introduction

At the end of December 2023, Piero Quispe left the team he loved to move to Pumas UNAM and, at the age of 22, cemented his first experience abroad. Born in 2001, Quispe built his football career in the Hector Chumpitaz group, the academy of Captain America, then moved on to smaller branches of Club Deportivo Universitario. After a good performance, he joined the main team of the student team at the beginning of January 2021.

After signing the agreement with the oriazules, the Héctor Chumpitas Academy has taken over the right to transfer Piero Quispe on a percentage basis, as both institutions have signed an agreement. However, two months after the transfer, the academy recently sent a letter demanding that Universitario be transparent about the transfer fee and allow the corresponding payment to be made.

Concept of rights in football

With the advent of global football investment funds, the terms “federative rights” and “economic rights” have become fashionable. Both refer to the employment contract that binds the player to the football club to which he belongs. The main difference relates to the ownership of the club’s assets: while the playing rights belong 100% to the club and cannot be transferred or sold, the economic rights can be divided between several agents or investment funds.

Federation rights arise when a player is registered with the national federation of each country. From now on, players will be able to represent their club in all tournaments. When that player’s contract expires and he does not transfer to any other team, the federation will remain “closed” until the future transfer is completed. At this point, he will receive his sporting licence again, allowing him to compete legally.

Economic rights, which are rights related to the economic value that a player can represent, can be transferred to another agent, to another club or even owned 100% by an investment fund. This is possible because its main characteristic is that it is divisible, which means that many investors buy parts of it to benefit from future player transfers.

Analysis of the case

After winning the Liga 1 Player of the Year award and winning the national championship with Universitario de Deportes in 2023, Piero Quispe was transferred to the Mexican team Pumas UNAM for one and a half million dollars. Two months after starting operations, the Héctor Chumpitaz Academy, an athlete training centre, demanded the payment of 40% of the economic rights for the transfer.

In the Chumpitaz group’s official document addressed to Jean Ferrari as the club’s administrator, it asked for the settlement of the footballer’s property rights to be respected.

Notarial letter sent by Grupo Hector Chumpitaz SAC to the club Universitario de Deportes. Source: larepublica.pe

In their letter, the organisation specialising in the training of young talent revealed details of Quispe Córdova’s transfer to Universitario in February 2019. According to the group, an agreement was reached and 100 per cent of the federal and registration rights were transferred, as well as 60 per cent of the economic rights, with them keeping the remaining 40 per cent under their control.

And this is where the problem arises, as the Hector Chumpitaz Academy guarantees that this percentage corresponds to the future sales of a current member of the Peruvian national team.

As detailed in the letter, the sports company is requesting an “immediate” transfer of $600,000 plus “interest accrued from the date your client (the University) signed the transfer agreement”.

Conclusions

In conclusion, on the basis of the concepts of rights explained above, I consider that it would not be appropriate to comply with the payment of economic rights, which is requested by the Academia Héctor Chumpitaz; since, according to the Regulations for the Status and Transfer of Players – FIFA (in force since September 2001) in its articles 17. 2, 18 bis and 18 ter, which regulate the “economic rights” linked to players, as well as the related contracts, indicate that it is strictly forbidden for clubs and players to transfer to a third party the right to claim compensation for unilateral termination of the employment contract, in accordance with article 17.2.

Furthermore, it should be emphasised that, in the said regulations, clubs are prohibited from entering into any agreement giving other clubs, and in particular third parties, the right to influence and/or interfere in the sporting activities or transfer of players to whom they are linked.

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