On Tuesday, FIFA announced that it had "punished four clubs for breaches of third-party ownership rules," according to Gabriele Marcotti of ESPN. TPO, which became illegal under FIFA rules in May '15, "is the practice of a club selling a share in a player to a third party -- usually a fund or a wealthy individual -- which then cashes in when said player is sold on." Using fictitious names, here is "how a typical example might play out:" Deportivo Ladrones agree to buy striker Carlos Craque from Fakechester Rovers for $2M but, "instead of putting up the money themselves, they only pay half the money and borrow the other million from a third-party investor called Mr. TPO." Mr. TPO and Deportivo Ladrones agree that, if Craque is sold in the future, "they will split the proceeds." And that is "exactly what happens," two seasons later, when Craque joins Bayer Schnitzel for $4M. Deportivo Ladrones and Mr. TPO "each get" $2M. FIFA banned the practice, under pressure from UEFA, "for a number of reasons." TPO "limits the choice available to players and clubs." The potential conflict of interest "is huge, especially when there are close ties between an agent and a third-party owner -- or, as has happened, when they're one and the same -- as is the potential for money-laundering." And then there is the "most obvious fact of all: Clubs stop being competitive entities and become vehicles for speculators." Reporting on TPO is "difficult for a number of reasons." It is not a "captivating topic and, in any case, most clubs and agents jealously guard contract information." In some countries, particularly those in South America, "it helps keep plenty of lower division clubs afloat." Meanwhile, it was "commonplace in Portugal for a long time and, in Spain, La Liga President Javier Tebas has lobbied to overturn the ban and replace it with some regulated form." Time will tell, "just as it will with so many other FIFA-related matters, whether they're for real." But what Wednesday's fines show, at least, "is a willingness not to tolerate clubs flouting the rules right under everybody's noses." It "sends a message." And "that's a start" (ESPN, 3/30).
