Miami, Fla. (Wednesday, April 24, 2019) – Kenneth Russo
The FIFA Regulations on the Status and Transfer of Players (the “RSTP”) establish rules concerning the status of players, their eligibility to participate in organised soccer, and their transfer between clubs belonging to different member associations across the globe. Two elements spelled out in the RSTP are for a club to be compensated for training and development costs if one of its players signs a contract in another country.
It all begins with the trading of a player (known in the fútbol world of course as a “transfer.”) So typically a club is interested in acquiring a player who is playing for another club (or a player who is under contract with a club desires to move to another club and that other club desires to hire that player.) The players are under contract, and most clubs have a transfer fee, either a hard number written into the contract (usually only for big names like Ronaldo or Messi – you may have heard of the term “release clause”) or (more commonly) the current club has the legal option to negotiate the amount of a transfer fee. Simple enough, eh? Now, if there are training or compensation fees, it gets a bit more complicated.
The essence of the training compensation rules is this: when a player registers as a professional for the first time in a country other than the one where he did his training, the club with which he registers is responsible for paying training compensation to every club that contributed to his training, starting from the season of his 12th birthday through the season of his 21st birthday. Moreover, training compensation is due on a player’s subsequent international transfer through the season of his 23rd birthday to his immediately prior professional club.
The basic premise of solidarity payments is that it applies any time that a professional player is transferred (whether on a temporary loan or on a permanent transfer) from a club in one FIFA member association (i.e., a federation) to a club in another federation during the course of his contract, a fee not to exceed five percent of the transfer fee is to be withheld and paid by the club receiving the player proportionally to the club(s) involved in that player’s training during the years between his 12th and 23rd birthdays. Unlike training compensation, which is only paid for players who have not yet reached the end of their age-23 season, solidarity payments continue for the duration of a player’s professional career, any time the player is transferred between federations while under contract and a transfer fee is paid.
For a more in-depth look at these important FIFA regulations, please use the following link to my web page:
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