FIFA to ban third-party ownership

FIFA president Sepp Blatter has announced that third-party ownership (TPO) in football is to be banned.

The practice of investment companies buying a stake in the economic rights of players is common in European and South American football, although it is already forbidden in the Premier League in England.

However, football's global governing body has now decided to prohibit TPO following a meeting of FIFA's executive committee in Zurich on Friday.

The decision allows for a transitional period and comes following significant pressure from European football's governing body UEFA to introduce new rules surrounding TPO.

UEFA general secretary Gianni Infantino indicated earlier this year that they would take action if FIFA failed to heed their calls for new TPO regulations.

A working group will now be set up to enforce the ban, which could have huge consequences on domestic leagues where TPO is used on a regular basis to allow clubs to buy players with the assistance of outside investors.

FIFA general secretary Jerome Valcke stated that there is no timescale for the ban to implemented, however, he does not expect it to come into effect for three to four years.

UEFA president Michel Platini hailed the announcment as a postive step for the transparency of the game and player freedom.

"I am very happy for football and I am very happy for players that FIFA has followed UEFA's initiative and recommendation to outlaw the practice of third-party ownership," Platini said.

"I have been constantly warning for years that this practice – which is becoming increasingly widespread – is a danger to our sport.

"It threatens the integrity of our competitions, damages football's image, poses a long-term threat to clubs' finances and even raises questions about human dignity.

"The ban is very positive news for player freedom and for the integrity and transparency of the game.

"There will have to be a transition period for the implementation of the ban, but I have faith that the working group that has been established will find the best rules and regulations to eradicate third-party ownership from football as soon as possible."