Termination of Employment via Buy- Out Clauses in Football Contracts in the Netherlands (Eiting/FC Volendam case)

This article discusses buy-out clauses in employment agreements of professional football players at Dutch football clubs. In this regard, the author will discuss the validity and enforceability of buy-out clauses. The recent proceedings between Carel Eiting (Eiting) and his (now former) club FC Volendam (Volendam) regarding the interpretation of a buy-out clause will be looked at in particular. In that matter, parties agreed on a buy-out clause with additional terms attached that had to be fulfilled first before termination by payment of an in-advance agreed amount (i.e. amount equal to “all expenses made” by the club in respect of the player) was allowed. The different interpretation of the agreed buy-out clause led to two consecutive arbitration proceedings with different toutcomes, shortly before the closure of the Dutch transfer window in the summer of 2023. The rulings will be analysed and commented upon by the author.