Professional footballers in the Czech Republic needed extra protection in case their club goes into bankruptcy. The Czech insolvency law put footballers at a disadvantage as they are often considered as unsecured creditors in contrast to other creditors who might be paid first in the insolvency proceedings.
In that respect, players are often victims of their club's bankruptcy. Long-term loss of income causes difficulties for them. 'The threat of a bankruptcy for a professional club in the Czech Republic is substantial', says Karel Poborsky, the chairman of CAFH. 'The principle is to pay back what players are entitled to when they are faced with non-payment by a club.'
In cooperation with a Czech insurance company - Cesk?podnikatelsk?pojistovna, Vienna Insurance Group - an insurance contract payout is based on a player's basic income up to a maximum of around € 800 (20,000 CZK) a month. This is paid under specific conditions for a maximum cover duration, i.e. 9 months.
The insurance is reassessed each year and with regard to membership of the Czech Association of Football Players, the first year's insurance is free of charge for all association members.
Czech footballers had been calling for insurance to be set up for when their club enters an insolvency process for a long time now. This insurance product is designed to cover situations arising from bankruptcy of first and second league football clubs. The insurance is provided when a club is incapable of paying its players basic wages, stipulated by contract. Players are entitled to the payout on the basis of a legal bankruptcy decision issued by an insolvency court.
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CZECH REPUBLIC: Insurance Czech players in case of club insolvency
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