The FIFA world congress agreed to introduce a new international transfer system that will controversially give all professional footballers aged over 23 the right to become free agents after a minimum period of time but their clubs will not receive any money for them.
The new system is expected to come into force by early August and effectively means that player wages are set to become even higher while transfer fees will fall. More players will be available as free agents, particularly high profile ones and clubs will use the money they normally pay for transfers towards more lucrative contracts.
The principles of the new transfer system were accepted by the FIFA congress and its executive committee over the weekend in Buenos Aires and have also won the approval of the European Union, which originally challenged the existing system claiming that it restricted the free movement of players.
Under the new system, all contracts will be for a minimum of one year and maximum of five years. All players aged between 23 and 28 will have to honour contracts for a minimum one year followed by a protected period of two years. Players aged over 28 will have to honour contracts for a minimum one year followed by a protected period of one year.
FIFA is to introduce a controversial proposal of "sporting just cause", enabling players to break their contracts during the protected period. If a player can prove that he has such a cause then he can take his case to a new international football arbitration tribunal due to be set up and argue that he should have the right to break his contract.
"Sporting just cause" has been defined by the organisation as a player who makes less than 10 per cent of first team appearances or a player who has not been paid.
Once all time obligations have been fulfilled then the player is free to go to whichever club he wants to and the original club has no right to hold onto him or try and sell him. There will also be no compensation for the club that initially discovered the player and developed his talent.
All 204 national football associations around the world are to be sent details of the new transfer system over the coming days which initially will only apply to international moves. However, the system is eventually expected to be extended to transfers within countries.
FIFA has promised to review the new transfer system in two years time and admits that changes might have to be made.