Then there is FIFA’s controversial “Annex 7” amendment. In March 2022, FIFA reacted to the outbreak of war in the region by affording foreign players and coaches in Ukraine or Russia the chance to unilaterally suspend their contracts, initially until June 2022 before extending the provision by a further year, and then again until 2024. Any individuals affected could therefore seek a move elsewhere to continue their careers in a safe country.
FIFA argued this maintained the rights of those involved while also giving the clubs a degree of protection as an act of war may in many cases justify an immediate termination of contract under force majeure, meaning clubs would lose players for nothing. However, Shakhtar challenged the initial ruling, taking FIFA to the Court of Arbitration for Sport over what they believed was a gross infringement on their ability to operate successfully. CAS ruled in favour of FIFA, stating “that the measures adopted were not grossly disproportionate and remained within the sphere of discretion granted to FIFA by Swiss law.”
An inevitable exodus followed. De Zerbi left, eventually to join Premier League side Brighton, and Shakhtar hired Croatian manager Igor Jovicevic — who played at the club for 11 years, winning the UEFA Cup in 2009 — from Dnipro-1 to replace him. FIFA’s ruling left Shakhtar with around 15 players to start the 2022-23 season, a campaign that included a tough Champions League group comprising Real Madrid, RB Leipzig and Celtic.
“We started to bring players back from loan and invite Ukrainian players playing abroad,” Palkin says. “We started contacting former players playing in different championships and invited them here because we could not start a championship and Champions League season.
“We won 3-0 at our main competitor for the championship [Dnipro-1 on May 28] and for the first time in our history, we had 11 Ukrainian players. This championship for us was the most difficult and important in the whole of our history. We had to build everything from scratch and nobody believed Shakhtar would win the championship. Why it is the most important in our history is because we became champions during the war. We will remember this for many, many years.”
Two examples from last summer include Brazilian duo David Neres, who joined Benfica for a reported €15m, and Dodo, who left on loan for Fiorentina with obligation to sign permanently for €14.5m. De Zerbi, meanwhile, joined Brighton in September after Graham Potter took the vacant Chelsea job and has gone on to prove himself one of the brightest coaching prospects in Europe.
Shakhtar now believe they risk losing a further €40m in revenue from the prolongation of Annex 7, prompting Palkin’s fresh legal challenge after talks involving the European Club Association (ECA) acting as an intermediary with FIFA have failed.
“FIFA don’t provide any support for Ukrainian clubs,” he says. “This is the biggest problem, and this is why we try and struggle with them for so long and fight with them. OK, you are giving help to foreign players — and that I understand — what about Ukrainian football itself? What about Ukrainian players? … In all speeches, they always say ‘we are one football family,’ but Ukraine has been out of this football family since the beginning of the war.”
Sources at FIFA have told ESPN that each player’s situation is judged on a case-by-case basis, so players cannot automatically leave on a free transfer. Various adjustments to Annex 7 have also been made with Ukrainian clubs’ financial health in mind. They include the clause that players and staff wanting to use Annex 7 must inform their team in writing by July 1, and those who extended their contracts after March 7, 2022 cannot now suspend their agreements. Sources say FIFA are confident CAS will back their judgement, but Palkin remains defiant.
Nevertheless, sources say Shakhtar have lodged an appeal with the European Commission over the terms of Annex 7 and they are preparing a case at the Swiss Federal Tribunal to contest CAS’ decision.
“We are still in legal dispute with FIFA, we go to court,” Palkin says. “I would like to send a message to those clubs who are trying to sign our players without paying a transfer fee, Shakhtar will file claims for unjust enrichment against players or clubs who have enriched themselves and benefitted by obtaining a financial advantage. We believe these clubs who enrich themselves at Shakhtar’s expense will be obliged to pay restitutions. Those clubs should understand what they do when they decide to sign our players.”
