International football transfers can move extremely quickly, often with only a matter of days between initial discussions and the player formally putting pen to paper to finalise the transfer. The player and their agent or representatives will understandably be most concerned with wrapping up the deal and swiftly relocating the player so they can start settling in at their new club. However, there are many other legal issues and considerations to bear in mind.
Tax and wealth structuring
Footballers moving to the UK must carefully consider tax and wealth management due to changing regulations, particularly with the expected shift in the 'non-dom' tax regime by April 2025. Players should also focus on structuring their wealth effectively, accounting for asset protection and long-term financial goals, while ensuring adherence to global tax laws.
- Tax advice: With ever-increasing player turnover, players joining clubs in England from overseas will not necessarily do so with the expectation of remaining in England forever. At present, players coming to live in the UK but maintaining that their 'permanent home' is elsewhere will likely be classified as non-UK domiciled for UK tax purposes and, with the benefit of planning, be able to keep the majority of their non-UK wealth outside the scope of UK taxation. However, proposed changes, likely to be implemented with effect from April 2025, mean the current UK 'non-dom' tax regime will be changing to a residence-based system that will present new challenges to players and their advisors. It is also important to consider the interaction of the UK tax regime with the tax regime of the player's nationality and/or the country where their previous club(s) was, so as to avoid any unintended foreign tax charges.
- Wealth structuring: Careers in football are short but can generate significant wealth within a condensed timeframe. Players are therefore well advised to consider their long-term financial objectives while at the height of their earning power. Players may prioritise safeguarding and preserving their assets for future generations, protecting against changing personal circumstances or potential divorce risk, while also ensuring tax efficiency and compliance in other relevant jurisdictions. Depending on the needs of the family and the nature of their assets, family wealth holding structures may range from simple contractual arrangements to more complex trust or corporate structures.
- Succession planning: It is not uncommon for heirs to fight over how inherited wealth should be managed and spent – and wealth generated in the world of professional sport can present particular challenges (such as international asset-bases, image rights, and confidentiality concerns). Families that agree how to manage their wealth, both now and for future generations, are far more likely to preserve their wealth and their business interests. As a minimum, we strongly recommend players put in place UK Wills to ensure that, if the worst were to happen, any assets devolving under the law of England and Wales would pass in accordance with their wishes and in a tax efficient manner to provide the most benefit to loved ones. Beyond that, however, we also recommend that players consider more comprehensive succession plans, and possibly implement a form of family charter or constitution to set out rules and guidelines to govern family members' entitlement to the family wealth.
Relocation to the UK
Relocation to the UK is an exciting prospect for any international sportsperson. With it comes not only a change in playing environment but also a host of considerations to ensure a smooth transition both professionally and personally. This guide aims to outline key areas that footballers should address when moving to the UK.
- Location: Location is key, particularly when settling in a new country. Proximity to training facilities, sports venue and lifestyle amenities such as shops and restaurants are critical for comfort and convenience. Consider travel times and transportation options available as these will impact your daily routine and quality of life. An experienced property agent with local expertise can help with your search – the club will also likely have trusted contacts which they can refer you to.
- Renting vs buying: The choice is significant, with each option having pros and cons. Renting offers flexibility and is ideal for short-term stays and familiarising yourself with an area. Buying can provide stability and a long-term investment. This might be more suitable if planning a longer stay or establishing a family residence in the UK. You will likely be liable to pay stamp duty land tax if you buy, but may also need to pay if the rent is high enough.
- Privacy and security: Seek properties that offer enhanced privacy and security features like gated entries or advanced home security systems. These considerations are paramount for preserving your personal space away from public attention while ensuring you feel secure in your new environment.
- Type of ownership: Consult legal professionals to advise you on the type of ownership. Freehold ownership is more common with houses and essentially means owning the property outright, including the property, the ground and subsoil beneath it and airspace above it. Leasehold, on the other hand, is how apartments are usually owned. You will often only own the internal envelope of the property (ie up to the ceilings, down to the floor), whereas the landlord will own the structure and common parts such as stairs and hallways. The landlord will want to retain a high level of control, meaning that you will usually need to obtain their permission to things such as altering the apartment.
- Assembling a property team: A buying agent can be invaluable when it comes to deciding where to live, using their knowledge of the local market to spot appropriate homes aligned with your needs. A surveyor will then be able to assist in evaluating the physical state of the property, including whether it is structurally sound and if any works are needed. It pays to engage your lawyer early in the process prior to securing your property – this allows you the time to consider the structuring of your process, receive advice where required and also give selling agents confidence of your seriousness and ability to move quickly when bidding on in-demand properties. Having a team in place early on can really make the process more smooth.
Reputational and privacy challenges
International footballers moving to England for the first time can encounter a number of reputational and privacy challenges. Taking proactive steps to limit the impact of these challenges is crucial.
- Existing online reputation: Footballers sometimes have a pre-existing reputation online and/or their private information may have been previously published without their knowledge. Once transferring to England, a previous reputation (and all information available online) will follow a footballer and may be the basis of media stories or other focus that shapes the narrative around them. Before completing a transfer to an English club and moving to England, a footballer may wish to engage specialists to conduct an online audit of all of the information that is available about them online and is accessible within this jurisdiction. Once a comprehensive audit is carried out, a plan can be devised with the help of PR advisers and specialist media lawyers on how to tackle (e.g. remove or counter) any negative narratives and/or unwanted private information that is accessible online.
- Social media: Social media has become an almost crucial part of the off-field public engagement that a footballer has with his fans. However, the use of social media can amplify mistakes or misstatements, making them public and permanent. When making public statements or posts, cultural differences between England and the footballer's home country need to be born in mind. Actions or statements can easily be misconstrued and perceived differently where there is a cultural difference and this could lead to negative publicity. To minimise any issues, footballers should change the settings on any personal social media profiles to private and avoid posting more than is necessary. A conversation with a friend or teammate is better had via private channels such as private messages or texts rather than in public comments. Photos are better shared with family or friends via private channels. It should be presumed that anything posted, even in a profile with private settings, can end up being leaked to the media. If a footballer does want to engaged with fans through a public social media profile, it is advisable that he engages experts to help to run the profiles and create and post the content on his behalf. This will minimise the risk that posts will cause any negative impact. Social media is unfortunately also a platform where anonymous 'trolls' may harass footballers for no apparent reason. The team running a footballers' public social media account should keep a record of all abusive and/or threatening messages received by individuals. If there is a persistent course of conduct seek advice from lawyers about action that might be taken against the perpetrators.
- Media attention: Footballers often find themselves under considerable media scrutiny, with both their on-field performances and off-field lives being of interest to the public and press. Once a negative narrative has been created about a footballer, the media often seek to perpetuate that narrative and look for any excuse to do so. It is important that footballers engage PR advisers and/or specialist media lawyers as soon as they become the focus of negative stories. PR adviser will advise on the best course of action that can be taken to change the narrative. This may sometimes include publishing a statement to counter allegations and set the record straight. Media lawyers can advise on any potential claims or regulatory complaints where the media have stepped over the line. Given their wealthy status compared to the vast majority of the population, footballers who are in the public eye are also often the target of paparazzi, who are keen to photograph every aspect of a footballer's life with a view to selling those photos to the media. Footballers who are targeted by paparazzi should engage specialist media lawyers who can advise on whether there are any potential claims, such a claim for misuse of private information or harassment.
