A contractual dispute has emerged between Naxxar Lions and Brazilian footballer Gabriel Costa Gonçalves, with the player formally rejecting the club’s attempt to activate a unilateral contract extension clause and signalling his intention to leave the club at the end of his original agreement.
Malta Sport is in possession of documentation exchanged between the parties relating to the dispute, including legal correspondence sent on behalf of the player to Naxxar Lions and copied to the Malta Football Association.
In a legal response sent to Naxxar Lions, Costa’s representatives argued that the club’s extension option is invalid under FIFA regulations and established Court of Arbitration for Sport jurisprudence.
According to the player’s legal team, the club informed Costa of its intention to exercise the extension option on 11 May 2026, one day after the conclusion of the 2025/26 season and after the player’s contract had effectively reached its original expiry date. The player’s lawyers contend that such timing is incompatible with FIFA principles governing unilateral extension clauses.
The legal notice further argues that the extension clause failed to provide the player with any meaningful increase in remuneration for the proposed extension period. On the contrary, Costa’s representatives claim that his overall financial package would effectively be reduced following Naxxar Lions’ relegation to the Challenge League.
Costa’s legal team cited FIFA Dispute Resolution Chamber decisions and CAS jurisprudence, maintaining that unilateral options must be exercised within a reasonable period before a contract expires and should not place one party entirely at the mercy of the other.
The player has therefore formally rejected Naxxar Lions’ position and confirmed that he does not intend to continue with the club beyond the original contractual term. His lawyers also reserved the right to pursue the matter before FIFA’s Football Tribunal should the dispute remain unresolved.
The case could now develop into a significant contractual dispute within Maltese football, particularly as it concerns the validity of unilateral extension clauses and the protections afforded to players under FIFA regulations. For the moment, both sides appear firmly entrenched in their respective positions as the matter potentially heads towards international football’s legal bodies.
At the time of publication, Naxxar Lions have maintained their position that the extension option was exercised in accordance with the employment agreement, whilst the player’s representatives continue to challenge its validity.
