FIFA Solidarity and Compensation Payments

FIFA Solidarity and Compensation Payments

Training Compensation Guidelines (Feb. 2021)

These regulations deal with the status and eligibility of Players as well as the rules applicable whenever Players move between clubs belonging to different National Associations and when a player transfers between clubs from the same Association who was trained by clubs outside the Associations jurisdiction.

Compensation Payments:

• Came into force September 1st 2001
• An ITC (International Transfer Certificate) must be issued without conditions to any player who has reached the minimum working age in the country requesting the cert
• An ITC is not required for players under 12
• Player's 'passport' (playing history) must accompany the ITC

Compensation: Who gets what & how?

• Training compensation is paid to all clubs who've trained the player from age 12 to 21
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,
2. each time a professional is transferred until the end of the calendar year of his 23rd birthday.

All compensation in EU / European Economic Area (EEA) is based on costs of the country in which the training club is located After that however, when a player moves from a lower to a higher category club, the calculation shall be based on the average of the training costs of the two clubs.

The obligation to pay training compensation arises whether the 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 the FIFA Regulations on the Status and Transfer of Players. The principles of training compensation shall not apply to women’s football.

Compensation: How it's calculated

• The amount is calculated by multiplying the figure corresponding to the category of training (all countries have categorised their clubs) by the number of years of training provided between age 12 and 21
• To ensure that training compensation for very young players is not set at unreasonably high levels, the training cost for players for the seasons between their 12th and 15th birthdays (i.e. four seasons) shall be based on the training and education costs of Category Four clubs. This exception shall, however, not be applicable where the event giving rise to the right to training compensation occurs before the end of the season of the player’s 18th birthday.

Compensation: The Categories

• The FAI has submitted three categories:
Category 2 – SSE Airtricity League Premier Division Clubs
Category 3 – SSE Airtricity League First Division Clubs
Category 4 - All other clubs and the 12-15 age-group, irrespective of the club's category
Only England, France, Germany, Holland, Spain and Italy have Category One clubs

Compensation & Solidarity Payments • Compensation Payments conclude when a player's training is completed
Thereafter, Solidarity Payments are applicable if a player is transferred during contract between different juristictions and when a player transfers between clubs from the same Association who was trained by clubs outside the Associations jurisdiction.

Solidarity Payments

If a transfer occurs between different jurisdictions when a player is in contract and when a player transfers between clubs from the same Association who was trained by clubs outside the Associations jurisdiction, the fee is then negotiable and 5% of this amount is then distributed pro rata to all clubs involved in his training since the season of his 12th birthday.

Solidarity Contribution - Payment breakdown

When a professional moves during the course of a contract, 5% of any compensation, with the exception of Training Compensation, paid to his Former Club shall be deducted from the total amount of this compensation and distributed by the New Club as a solidarity contribution to the club(s) involved in his training and education over the years (calculated pro rata if less than one year) he was registered with the relevant club(s) between the Seasons of his 12th and 23rd birthdays, as follows:

• Season of 12th birthday: 5%
• Season of 13th birthday: 5%
• Season of 14th birthday: 5%
• Season of 15th birthday: 5%
• Season of 16th birthday: 10%
• Season of 17th birthday: 10%
• Season of 18h birthday: 10%
• Season of 19th birthday: 10%
• Season of 20th birthday: 10%
• Season of 21st birthday: 10%
• Season of 22nd birthday: 10%
• Season of 23rd birthday: 10%
• Total = 100%

Compensation: Payment calculation

• The responsibility to calculate the payment rests with the New Club at all times, irrespective of whether it is training compensation or solidarity payment
• To enable the processing and execution of payments, the relevant Association must submit the player's 'passport' on FIFA International Transfer Matching System (ITMS) with the ITC

NOTE: It is important to note that FIFA shall not hear any case subject to these regulations if more than two years have elapsed since the event given rise to any dispute.

For all queries relating to Training Compensation Guidelines, please contact