In football, co-ownership refers to a player, owned by two different clubs. However, his registration to play is only for one club. This joint ownership commonly practices in some countries. Argentina and Chile are some of the countries that adopted this system.
How the Rules of Co-ownership Works
In Italian football, co-ownership is very common, particularly before the 2014 – 2015 season. It is similar to a regular transfer, but until the contract of the player expires, the selling club will keep the participation rights. For co-ownership to work, the player's contract needs to have a remaining two years before expiration. It ensures that both clubs can enjoy this joint ownership.In co-ownership, the selling club still keeps 50% rights of the value of its player. The receiving club will only get 100% value of the player, once the contract expires. It is possible to terminate the agreement, provided that both parties involved agreed. This practice is sanctioned by the Italian Football Federation International Organizational Regulations, under participation rights.
Understanding Co-ownership
Co-ownership works by being owned by two clubs. However, the player is only assigned to play for one team. Both the clubs will decide where the player can play next season. The clubs will also share 50 – 50 splits of the rights of the value of the player.Joint ownership is often practiced by a bigger club association. If the club has a player that lacks the skills, half of his contract his sold to a mid-table side. The player is sent to the mid-table to develop his playing skills and eventually earn financial interest.
It is known that co-ownership is motivated for financial reasons. Nevertheless, all clubs, including the player, can benefit financially with the partnership. The player can develop his technical skills, while at the same time being owned by two clubs.