Introduction

Whether you are a professional football club looking to capture the signature of the next superstar or a child finally making their dream a reality, understanding training compensation and solidarity payments can play an important role in the decision-making process.

What are Training Compensation and Solidarity Payments?

Training compensation and solidarity payments are mechanisms designed to reward and incentivise clubs for developing young talent. These economic principles were introduced by Fédération Internationale de Football Association (FIFA)  and are embedded in the FIFA Regulations on the Status and Transfer of Players (“RSTP”). It is vital to note that these payments are payable by the club(s) not the player.

Article 20 RSTP Training Compensation

What is it?

The provisions concerning training compensation are set out in Annexe 4 of RSTP but in summary it is a fee paid to a player’s training club(s) when the player signs their first professional contract and/or when they are transferred between clubs of different associations.  This helps ensures that those hours spent on the training ground and the efforts of the club(s) in developing the young star are compensated as the club(s) played their respective part in the player’s development. Without this principle, club(s) could spend an enormous amount of time and put resources into developing a player who then signs for another club without reaping any reward for their efforts.

When is it payable?

Training compensation, as a general rule, is payable if:

  • The player signs their first professional contract before the age of 23.

  • The player transfers between clubs of different associations before the end of the season of their 23rd birthday.

  • The obligation to pay training compensation arises whether the transfer takes place during or at the end of the player’s contract.

The calculation of training compensation involves several factors:

  • Obtaining details of where the player trained between the ages of 12 to 23 as that is the period of time considered to be when the players training and education takes places.

  • The cost category of the clubs involved (training costs differ depending on the country and the club’s financial status but each club should fit into one of the categories which has a financial value).

  • The period during which the player was registered with the training club(s), typically from the age of 12 to 21.

Training compensation is calculated on a pro-rata basis, reflecting the actual training costs incurred by the clubs which usually involves multiplying the value of the category the club is in by the time spent at the club with consideration of the likely costs incurred by a respective club. FIFA’s regulations provide a detailed formula, which is adapted by the FA to suit the local context.

Article 21 RSTP Solidarity Payments

What is it?

The provisions concerning solidarity contributions are set out in Annexe 5 of RSTP but in summary solidarity payments are another form of financial remuneration aimed at promoting and rewarding youth development. These payments are made to all clubs that have contributed to the training and education of a player over the years. They are triggered when a player is transferred between clubs of different associations for a fee.

When is it payable?

According to the FA’s rules:

  • Solidarity payments are distributed if the player transfers before the expiration of their contract.

  • A percentage of the transfer fee (5% as per FIFA regulations) is allocated to the clubs involved in the player’s training and development, from the age of 12 to 23.

The distribution of solidarity payments is as follows:

  • 5% of the transfer fee is set aside for solidarity payments.

  • This 5% is then distributed among the clubs based on the period the player was registered with them, calculated from the season of the player’s 12th birthday until the season of their 23rd birthday as follows:

– Season of 12th birthday: 5% (i.e. 0.25% of total compensation);

– Season of 13th birthday: 5% (i.e. 0.25% of total compensation);

– Season of 14th birthday: 5% (i.e. 0.25% of total compensation);

– Season of 15th birthday: 5% (i.e. 0.25% of total compensation);

– Season of 16th birthday: 10% (i.e. 0.5% of total compensation);

– Season of 17th birthday: 10% (i.e. 0.5% of total compensation);

– Season of 18th birthday: 10% (i.e. 0.5% of total compensation);

– Season of 19th birthday: 10% (i.e. 0.5% of total compensation);

– Season of 20th birthday: 10% (i.e. 0.5% of total compensation);

– Season of 21st birthday: 10% (i.e. 0.5% of total compensation);

– Season of 22nd birthday: 10% (i.e. 0.5% of total compensation);

– Season of 23rd birthday: 10% (i.e. 0.5% of total compensation)

The distribution is proportional, ensuring that clubs that contributed more to the player’s development receive a larger share.

Implementation in the UK Context

FA Regulations and Compliance

The FA implements FIFA’s regulations on training compensation and solidarity payments with specific adaptations so clubs in the UK are required to comply with these regulations, ensuring that youth development is adequately rewarded.

The FA’s rules mandate that:

  • Clubs maintain detailed records of player registrations and training durations.

  • All relevant documentation is submitted promptly when a transfer occurs, to facilitate the calculation and distribution of payments.

Challenges and Considerations

While the principles of training compensation and solidarity payments are clear, their implementation can sometimes be complex. Challenges include:

  • Disputes over the accuracy of training durations and costs.

  • Variations in training costs between clubs of different financial standings.

  • Ensuring compliance with both FA and FIFA regulations to avoid penalties.

How we can help.

Understanding and navigating these financial mechanisms is crucial for all stakeholders involved in the professional development of football players. The FIFA Disciplinary Committee may impose disciplinary measures on clubs or players that do not observe the obligations set out in RSTP. Therefore, if you are a player whose move is being stalled due to issues with these payments, or you are a club and believe you are entitled to compensation for your role in a players development, please do not hesitate to contact us and we can advise you further. Call 0845 287 0939 or get in touch by email.

You can also visit the FIFA website and use their training calculator tool. Training rewards calculator (windows.net) .