Unclear bonuses and tax issues: Why footballers should get legal advice from lawyers during and after their careers

Can you tell us more about AKD and the work you do?

‘’Our law firm has a full-service approach. We offer a wide range of legal services, from contract negotiations to tax advice and intellectual property law. We have a multidisciplinary team with professionals complementing legal specialists thus combining legal expertise and in-depth knowledge of the sports and entertainment industries.’’

How can AKD help footballers?

‘’We support footballers during their careers in contract negotiations with clubs or sponsors, but also in conflict situations, for example. We understand that the career of an athlete or artist is often of limited duration, so we also focus on how we can help them in the long term. That’s why we also offer support to footballers after their careers as they pursue new paths in for example football management or entrepreneurship.’’ 

Why is it so important for footballers to get legal advice during their careers?

‘’Footballers live in an environment that constantly changes and where they need to make important decisions quickly. These decisions usually have big financial consequences. While there are many skilled advisors in football, it’s not uncommon to hear about issues with advisors who try to take advantage of the large financial stakes in play unfortunately.’’

‘’As a lawyer – unlike many other advisors – you are bound by professional and ethical rules that safeguard core values such as independence, impartiality, expertise, integrity, and confidentiality. The professional organisation for lawyers in the Netherlands ensures that these values are upheld in practice, with serious consequences for lawyers who fail to do so. This serves as an additional safeguard, ensuring that our team can be trusted to provide the right advice with integrity.’’ 

‘’The advice we provide can be important at various stages. Generally speaking, we focus mainly on the short-term needs of active footballers such as contracts with clubs, agencies, and sponsors. This includes ensuring their rights during transfers and protecting their image and name.’’ 

And what legal advice do you provide to footballers who have just ended their playing careers?

‘’After their active careers, the focus often shifts to setting up businesses or foundations, investments in new projects, or real estate. The aim is to preserve and manage wealth. They must have a team that understands these complex issues and can provide long-term guidance. A concrete example is a former footballer whom we helped to establish a business in sports coaching with the right partners and financiers. Without proper legal advice, there was a significant risk of not handling personal data correctly, for example.’’ 

What is a common challenge you’ve seen many footballers face when ending their careers?

‘’One of the biggest challenges footballers face after their careers is maintaining financial stability and finding a new passion or direction. Many want to start businesses or make investments but are not always well-prepared for the legal and corporate challenges that come with it. It’s not uncommon for footballers to partner with advisors who later turn out to be unreliable. A good long-term plan ensures that former footballers can continue their lives after sports with security and without unnecessary legal risks.’’

The transfer window might be one of the most crucial times in which a footballer needs the advice and help of lawyers. What are the biggest and most common pitfalls for footballers when signing new contracts at football clubs?

‘’The first paragraph of a contract is usually the wage. While the salary is usually quite clear and easy to understand, the bonuses can be much more complex. It follows that bonuses must be described clearly and there must be clear terms and conditions for payout. This prevents misunderstanding or disputes when certain achievements are not measurable or interpreted differently by various parties.’’

‘’Another common pitfall is a vaguely worded or unclear release and transfer clause or invalid optional clauses. This can lead to disagreements when a player wants to switch clubs or when a club is interested in the player. These issues often end up going to the arbitration committee of the National Football Association.’’ 

‘’Finally, tax issues are often complex, especially when a player has income from multiple countries. The wrong structure can result in double taxation or fines from tax authorities.’’ 

Interestingly, you mention income from multiple countries. One of the advantages of AKD is also that you have an extensive international network. How can this help footballers?

‘Footballers usually work all over the world and face international laws and regulations. Our extensive network of partner firms allows us to advise them globally. Whether it’s about tax issues in different countries, negotiating a transfer to a foreign club, or signing a sponsorship deal with one of the major brands, we ensure that our clients have the best legal protection possible.’’ 

Visit AKD’s website to learn more about their expertise in guiding athletes through financial and legal challenges.