You are Welcome to our inaugural Knowledge Sharing Series
Today our topic will be Training Compensation (TC) & Solidarity Contribution (SC)/Solidarity Mechanism (SM):
Benefits for Football Clubs/Academies
#Right2WinSeries
1

There is a huge gap in the transfer market that is rarely discussed which is seriously damaging for grassroots. The gap btwn the amount of money due to clubs for training players during their development yrs & the payments received by these clubs is growing
#Right2WinSeries
2

It has become such a problem that FIFA is setting up a mechanism whereby the governing body will take charge of processing all training rewards payments. With the introduction of the FIFA Clearing House which will be rolled out soon by @FIFAcom
#Right2WinSeries
3

This guide focuses on TC & SC, which are governed respectively by Articles 20 and 21, and Annexes 4 and 5, of FIFA RSTP https://resources.fifa.com/mm/document/affederation/administration/02/55/56/41/regulationsonthestatusandtransferofplayersapril2015e_neutral.pdf
#Right2WinSeries
4

FOCUS
1.Introduction
2.What is Training Compensation?
3.What is Solidarity Contribution?
4.Calculation of TC
5.Calculation of Solidarity Contribution (Mechanism)
6. How to benefit from TC&SC
7.Safeguards/checklist for grassroots clubs
8.Conclusion
#Right2WinSeries
5

Introduction
TC & SC, sometimes jointly referred to as “Solidarity Payments” are used for the distribution of money within the football community and in particular to reward clubs that have invested in the training and development of young players.
#Right2WinSeries
6

Academies/Grassroot clubs are usually in the category of clubs that solidarity payments seek to reward for discovering and nurturing talented footballers who develop and sign up professional contracts. Get what is due to you instead of depending on players
#Right2WinSeries
7

Solidarity payments is a practical means of cushioning the implication of the ban on individual ownership of players i.e many grassroots teams are owned by coaches or individuals who deserve reward 4 their investments in the training & development of players
#Right2WinSeries
8

When a player becomes a (successful) professional, the clubs that trained him automatically get compensated for the period they trained that particular player and also a share of transfer fees.
#Right2WinSeries
9

What is TC?
Training compensation shall be paid to a player’s training club(s): (1) when a player is registered for the first time as a professional, and (2) each time a professional is transferred until the end of the season of his 23rd birthday.
#Right2WinSeries
10

The obligation to pay training compensation arises whether the player’s transfer takes place during or at the end of the player’s contract. The provisions concerning training compensation are set out in Annexe 4 of RSTP regulations
#Right2WinSeries
11

Method of Calculation of TC: FIFA sets categorization for these payments based on the geographic region and the caliber of the club signing the player considering the costs that would have been incurred by the new club if it had trained the player itself
#Right2WinSeries
12

When a player first registers as a professional the TC payable is calculated by taking the training costs of the new club multiplied by the number of years of training, in principle from the season of the player’s 12th bday to the season of his 21st bday
#Right2WinSeries
13

For subsequent transfers of the player to other clubs, TC is calculated based on the training costs of the new club multiplied by the number of years of training with the former club.
#Right2WinSeries
14

Training Cost
In order to calculate the compensation due for training and education costs, associations are instructed to divide their clubs into a maximum of four categories in accordance with the clubs’ financial investment in training players.
#Right2WinSeries
15

The training costs are set for each category and correspond to the amount needed to train one player for one year multiplied by an average “player factor”, which is the ratio of players who needed to be trained to produce one professional player.
#Right2WinSeries
16

The designation of a category for a particular club is determined by how much it spends on Youth Development, as assessed by the applicable FIFA Member Association
#Right2WinSeries
17

Practical Example
Eddie trained with Right2Win Sports Academy in Nigeria from age 12 and signed for Samba FC (Category II – CONMEBOL) at age 18 and at 21, he moved to Bury FC (Category I – UEFA):
#Right2WinSeries
18

For TC to Right2Win Sports Academy for first professional contract with Samba FC:
USD30,000 x 6 years = USD180,000 as training compensation to Right2Win SA from Samba FC
(if two or more clubs, the funds would be shared pro rata)
#Right2WinSeries
19

For Training Compensation to Right2Win Sports Academy for subsequent move from Samba FC to Bury FC:
USD90,000 x 6 years = USD540,000 as training compensation to Right2Win SA from Bury FC
#Right2WinSeries
20

For TC to Samba FC for subsequent move to Bury FC:
“In the case of subsequent transfers of the professional, TC will only be owed to his former club for the time he was effectively trained by that club” i.e. –
USD90,000 x 3 years = USD270,000 to Samba FC
#Right2WinSeries
21

TIMEFRAME FOR PAYMENT OF TC
The deadline for payment of TC is 30days following the registration of the player with the new association (Annex4,Article 3(2)RSTP) Despite this timeframe most clubs don’t always pay TC until claims are demanded by Training Clubs
#Right2WinSeries
22

DISPUTES REGARDING THE AMOUNT OF TC
The [FIFA] Dispute Resolution Chamber (“the DRC”) may review disputes concerning the amount of TC payable and shall have discretion to adjust this amount if it is clearly disproportionate to the case under review
#Right2WinSeries
23

What is ‘Solidarity Contribution?
A portion (5%) of transfer fee (i.e. when player is transferred before his contract expires) distributed to the clubs that trained the player between the ages of 12 – 23 years (solidarity Mechanism).
#Right2WinSeries
24

E.g Eden Hazard move from Chelsea to Madrid benefited his previous clubs too in form of SC according to @CIESsportsintel Lille got €3.25m and Tubize €0.75m being part of the 5% of €100m transfer fee received by Chelsea.
#Right2WinSeries
25

To date, a training club has been entitled to SC only if the player transfer took place between clubs from two different countries. (International Transfer). Goodnews Starting from 1 July 2020 SC will also accrue to domestic transfer
#Right2WinSeries
26

E.g If Nigerian Wilfred Ndidi moves from Leicester City to Arsenal for any fee as from the next summer transfer window whether definite or loan, provided that the training clubs are affiliated to different association they will share 5% of the transfer fee
#Right2WinSeries
27

Method of Calculation of Solidarity Contribution (Formula): inline with the formula set by @FIFAcom current Regulations on Status and Transfer of Players 2020 image below is the method to be adopted in calculating SC
#Right2WinSeries
28

SC Calculation
E.g.: Eddie is now 25 years old and has moved from Bury FC to Euro FC for £10million.
Let's see what comes to his training clubs
Right2Win Sports Academy, Samba FC and Bury FC
#Right2WinSeries
29

Points to Note for Making Claims for Training Compensation and Solidarity Contribution
#Right2WinSeries
30

Maintain affiliation with your State FA/NFF
Only clubs which are properly affiliated to a national FA are authorised to claim TC, that only such clubs can refer to (are governed by) the set of rules of the FIFA and especially to the Regulations
#Right2WinSeries
31

Keep records (that will serve as evidence for the Player Passport):
Player registration forms
Official league/competition licenses
Player’s Academy/Club identity card
International passport, if available
Amateur player contract, if possible
#Right2WinSeries
32

The “Player Passport” (This is not traveling International Passport). The Passport will provide assistance to clubs and relevant regulatory bodies in tracing the sporting history of players and complying with their payment obligations.
#Right2WinSeries
33

A player’s passport contains the relevant details of the player.
The player passport shall indicate the club(s) with which the player has been registered since the season of his 12th birthday. below is Eddie's Sample Passport
#Right2WinSeries
34

If a birthday falls between seasons, the player passport shall indicate the club with which he was registered during the season following his birthday
#Right2WinSeries
35

Claims for training compensation and solidarity contribution are made via the FIFA Transfer Matching System (TMS); however, claims by amateur clubs without TMS access are submitted through the national association.
#Right2WinSeries
36

Where a player’s training history cannot be proved or ascertained
An association is entitled to receive the training compensation which in principle would be due to one of its affiliated clubs, if it can provide evidence
#Right2WinSeries
37

that the club in question with which the professional was registered and trained – has in the meantime ceased to participate in organised football and/or no longer exists due to, in particular, bankruptcy, liquidation, dissolution or loss of affiliation.
#Right2WinSeries
38

This compensation shall be reserved for youth football development programmes in the association(s) in question.
#Right2WinSeries
39

While we will be on standby to attend to some questions from our followers on the topic today we appreciate @FIFAcom @kelechinnorom @donfiazo of @myron_sports, @KCJine @Nasmilo @thirdsonmedia1 whose resources and materials made this possible.
Until next time
#Right2WinSeries
40