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Lee Ryder

Top European sports lawyer discusses Newcastle United's World Cup compensation for Bruno Guimaraes

One of Europe's best-known sports lawyers David Diaz says that clubs will be casting a watchful eye over their prize assets during the unprecedented World Cup in Qatar.

Diaz and his firm have represented superstars like Neymar and Ronaldo and have connections across the world. And he has given insight into FIFA's plans to look after top stars during the Qatar World Cup.

Newcastle United are set to receive a share of a £200million payout from FIFA to help compensate the Magpies for losing the services of their stars during the tournament. But it is a scheme that Newcastle must first apply for and Diaz says some of the funds may go to some of the players' previous clubs.

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Shedding light on the scheme, Diaz, heads both the Employment & Compensation and Sports Law practice for legal firm Baker McKenzie, told Chronicle Live from Madrid: "I think they will have at least five players that will be likely to play. In addition to the England players you have Fabian Schar and Bruno Guimaraes.

"It protects the club but not against an injury. It protects the club financially for let's say they are effectively going on loan to the national team.

"That's why they mentioned it at the beginning and the combined effects of this and the club protection programme is only compensating that they are playing for the national team and not the club.

"In case of injury there is insurance, there is a cap and it relates to the fixed salary of the player. The overall amount FIFA would spend is limited at around £6m or £7m.

"So sport wise, honestly, that's where the pain is, it is difficult to compensate when somebody gets injured. How much does it cost to lose players? It could be the difference between playing Europa League or Champions League.

"Assuming you had a player like Bruno Guimaraes who could make it to at least the semi-final it is a matter of calculating two weeks before and the number of days and the daily amount.

"It's the amount Newcastle will receive. It's not a lot of money, a drop of ocean. On the other hand if you imagine Bruno makes it to the final or won the World Cup, what would be the increase in his value? Because Real Madrid will be interested by the end of the season to buy him."

Baker McKenzie's David Diaz (Baker McKenzie)

And then there is the condition that the likes of Bruno will be returned in.

Diaz said: "If he got to the final, imagine they win he'd want to celebrate. The longer they are in it, you will get more money but the player's energy gets lower.

"And there chances of injury is higher. So I think the longer they play and go through the higher the risk. $8,500 a day for a player like Bruno is peanuts really."

Diaz works with a host of La Liga clubs and admits the tournament has raised concerns in Spain.

He reflected: "I think it's unprecedented and there is a lot of concern. It is almost like a new league will start when the World Cup is finished.

"Because of the energy some players will have and secondly because of the injuries that might take place. The mindset of the players will be tired and morale of players who expect to make it through and don't get as far as they want.

"So I think it will be a game changer. I was talking with a club in Spain on Monday and they are really concerned about it. They are a team in the middle rankings of Spain with a couple of internationals and if they get the players back at a lower level, that could be hard for them.

"It's not like Newcastle who have six or seven world class players, some clubs have one or two. And for those teams, it will be tough. The big clubs have seven or eight going to the World Cup and you don't know what happens or when their season could end.

"When you are reaching April and the big prizes are at stake - where will the players be mentally? Imagine the clubs who are also playing Champions League quarter-finals and semi-finals. There are many concerns because we have never been here before and it's critical."

Díaz has been a partner at Baker McKenzie Madrid since 2004. He is Director of the Labour and Employment Department and of the Sports practice at the international law firm.

He has extensive experience in sports law and in particular in the football industry – he regularly advises Spanish and foreign clubs on the legal aspects derived from their operations, both in sports matters and in the aspects related to the aspects related to the day-to-day management of such organisations.

David regularly also advises agents and intermediaries, both national and international, in all matters related to the contracting, modification and termination of their and termination of contractual relationships, providing advice on all legal aspects related to the transfer of sports players, agents and intermediaries legal aspects derived from the transfer of players.

He also has extensive experience in advising foreign investors with a potential interest in the European soccer industry on M&A transactions.

He regularly participates in the Sports Law Forum organised by Fundación LaLiga, in the permanent seminar organised by the Association of Football Players organised by the Spanish Footballers' Association (AFE) and ISDE and in other forums of debate and legal analysis such as FIDE. He is also a professor in the Master in Law applied to Football at LaLiga Business School, in the Master in Sports Law at UNIR and in the Master in Sports Law at UNIR.

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