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Last year, @BlondinJacques of #FIFA joined us @FootballMBA to talk about #TMS. After his session, it was clear to me reforms in the transfer system can improve competitive balance & increase investment in youth development. So I chose to look into it more for our sports law class
This week I am wrapping up a report about the transfer regime w a focus on training rewards and how reform can help level the playing field between big and small clubs.
Below some of my takeaways so far
Below some of my takeaways so far
I spent the last 72 hours reading @FIFAcom transfer market & intermediaries reports, CAS rulings, and other legal docs on the status & transfer of players.
And came across some shocking stats:
Training Compensation & Solidarity Payments: $75.5m
Intermediary Commissions: $654m
And came across some shocking stats:
Training Compensation & Solidarity Payments: $75.5m
Intermediary Commissions: $654m
At @WFSummit, @GarciaSilvero confirmed in 2018 only 19% of the amounts due in training comp & solidarity payments were actually paid to training clubs.
And it has become clear that the gap between the rewards due and the actual amounts paid is growing consistently every season.
And it has become clear that the gap between the rewards due and the actual amounts paid is growing consistently every season.
In a move to increase transparency in the transfer market and ensure payments are made to the training clubs, #FIFA has announced the creation of its Clearing House, an entity in charge of processing payments related to training rewards between clubs all around the world.
FIFA will create a fund to support training rewards. The fund will be financed by an additional 1% levy on transfer fees. This could come into effect in 2022, but, the details on how the system will work and how the training costs will be calculated are to be determined.
To close the increasing gap between top clubs within top leagues and the rest of the 
world, further changes are needed.
A 2018 report by @EU_Commission recommended increasing the solidarity mechanism percentage and creating a âluxury taxâ on transfers beyond a certain amount.
world, further changes are needed. A 2018 report by @EU_Commission recommended increasing the solidarity mechanism percentage and creating a âluxury taxâ on transfers beyond a certain amount.
The impact of #COVID19 will lead to more modest transfer fees, and more than ever it'll be key thatstakeholders ensure a more efficient distribution of resources.
Clubs training players MUST be compensated so investing in development & education of players can stay a priority.
stakeholders ensure a more efficient distribution of resources.Clubs training players MUST be compensated so investing in development & education of players can stay a priority.
