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Edit article Solidarity Contribution in case of international transfers

  • Subjects: Publications, Status and Transfer of Players, Solidarity Contribution,

    Territory: FIFA - Fédération Internationale de Football Association



    Which occasion?

    Solidarity contribution is applicable in case of an international transfer or loan.

    Regulations on the Status and Transfer of Players 2010 (hereinafter RSTP). Article 21:

    'If a professional is transferred before the expiry of his contract, any club that has contributed to his education and training shall receive a proportion of the compensation paid to his former club (solidarity contribution).

    The provisions concerning solidarity contributions are set out in Annexe 5 of these regulations.'

    The same applies in case of an international loan. RSTP Art. 10, paragraph 1:

    'A professional may be loaned to another club on the basis of a written agreement between him and the clubs concerned. Any such loan is subject to the same rules as apply to the transfer of players, including the provisions on training compensation and the solidarity mechanism.'

    The age of a player is not relevant as long as he is transferred or loaned before the expiration of a his contract and compensation is being paid to his former club. 1 1 DRC, 1 April 2011, 04112858 paragraph 11
    .

    It is also impossible to set aside the obligation to distribute solidarity contribution by means of a contract concluded between the clubs involved in a player’s transfer.2 2 DRC, 11 March 2011, 3112691 paragraph 10

    When due?

    RSTP Annexe 5, Article 2 paragraph 1.

    The new club shall pay the solidarity contribution to the training club(s) ..... no later than 30 days after the player’s registration or, in case of contingent payments, 30 days after the date of such payments.

    Who pays?

    The new club has to pay. The new club has to deduct 5% of the total compensation. For instance if a the former club and the new club have agreed to a Solidarity Fee of 100.000 the new club has to deduct 5.000 and pay not more than 95.000 to the old club. If the new club and the former club wish to agree to a compensation amount 'after deduction of the solidarity fee' they should agree to such explicitly in the transfer or loan agreement.

    In the event the new club forgets to deduct the solidarity contribution, the former club will have to reimburse the solidarity contribution. It is not entitled to keep it. DRC 7 April 2011, 711826:

    13 . Hence, the Chamber referred to its well-established jurisprudence applied in similar cases, in accordance with which the player’s new club, i.e. FC N, is ordered to remit the relevant proportion(s) of the 5% solidarity contribution to the club(s) involved in the player’s training in strict application of art. 1 and 2 of the Annex 5 to the Regulations. At the same time, the player’s former club, i.e. Y, is ordered to reimburse the same proportion(s) of the 5% of the compensation that it received from the player’s new club, i.e. FC N. '

    Who claims?

    • The clubs that the player was registered with the between seasons of his 12th and 23rd birthdays and,
    • the association(s) of the country (or countries) where the professional was trained, if a link between the professional and any of the clubs that trained him cannot be established within 18 months of his transfer.

    Only if a player has been registered with a club, contribution can be claimed by an FA. For unaccountend (unregistered) periods between the age of 12 and 21 no contribution can be claimed. See DRC 8 August 2011, 811829:

    20 . On the basis of the aforementioned wording, the members of the Chamber were eager to emphasise that the Regulations clearly and unambiguously request for the player to have been trained in football during the period of time in which no link between the professional player and any of the clubs that trained him can be established. Only such understanding can properly reflect the aim and the ratio legis of the solidarity mechanism, which is to reward the clubs investing in the football training and education of young players. In other words, if prior to enter into football a player practised no sport at all or another sport, training cannot be compensated within the football structures.

    21 . As a result, the Chamber unanimously concluded that contrary to the Claimant’s position, it is an association’s responsibility not only to demonstrate that no link could be established between a professional and a club, but also to give evidence that the player had actually been trained in football during the relevant period of time, if it intends to claim part of the solidarity contribution.

    Keep in mind trained 'in football' means within the official football tree. Training with unofficial 'academies' does not count.

    The club who has not received his share of the solidarity contribution within 30 days, has until 2 years after the registration of the player to claim it's share.

    The association is entitled to claim the solidarity contribution as soon as 18 months have elapsed since the registration of the player for the new club. It will have six months to do so, as this right will prescript two years after registration. However, if the association has irrefutable evidence that one of its affiliated clubs that is entitled to solidarity contribution no longer exists, the solidarity contribution should be paid immediately to the association and not only after 18 months. If the association claims the solidarity contribution and an entitled club then appears, the claim of the association will obviously lose any effect. Commentary article

    How much?

    RSTP Annexe 5, Article 1:

    If a professional moves during the course of a contract, 5% of any compensation, not including 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. This solidarity contribution reflects the number of 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% (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).

    Last update by: Matthijs Lambregts on March 25, 2013 16:12