Academic journal article The International Sports Law Journal

The Training Compensation System

Academic journal article The International Sports Law Journal

The Training Compensation System

Article excerpt

1. Introduction

Football clubs became obliged to pay training compensation with the introduction of the FIFA Regulations for the Status and Transfer of Players in 2001. The basic rule is that a club owes compensation to all clubs which contributed to a player's training if that player signs his first contract as a professional before his 23rd birthday, or if the player transfers before his 23rd birthday. The Regulations were amended in 2005. Several modifications were made but the training compensation itself remained in existence.

The Dispute Resolution Chamber (DRC) is the organ charged with issuing decisions in the case of disputes involving training compensation. The DRC has issued a number of such decisions in this area in the interim. A discussion follows below on how the training compensation system works, based on the FIFA Regulations for the Status and Transfer of Players and the DRC's decisions. It will focus to a large extent on cases where compensation is due and calculation of the extent of this amount. These themes will be addressed after discussing the DRC's working methods.

2. The Dispute Resolution Chamber

In each case, the Dispute Resolution Chamber first determines whether it is competent to issue a decision. This occurs on the basis of the Rules Governing the Procedures of the Players' Status Committee and the Dispute Resolution Chamber (DRC) and the Regulations for the Status and Transfer of Players. (1) It is also determined which version of the Rules Governing the Procedures of the Players' Status Committee and the Dispute Resolution Chamber (DRC) applies. (2) The DRC is empowered to issue a decision in the case of a dispute about training compensation between clubs which belong to different football associations. (3)

Should it be confirmed that the DRC is indeed the correct body, it is then determined which version of the Regulations for the Status and Transfer of Players applies. A new version of these regulations came into effect on 1 July 2005. The regulations of 2001 apply to issues submitted to FIFA before this date. The regulations of 2005 apply in all other cases. (4) Several amended articles apply from 1 January 2008, but the articles involving training compensation have not been amended. (5)

The DRC issues decisions based on the facts and evidence provided. (6) Any party deriving a right from an alleged fact shall carry the burden of proof. (7) Appeals against DRC decisions can be submitted to the Court of Arbitration for Sport (CAS). (8)

3. When is there an entitlement to training compensation?

3.1 National

FIFA regulations cover training compensation in international cases. These generally concern a club which must pay compensation to a club which is a member of a different football association. The rules governing national transfers are drawn up by the national football associations. These rules must however be approved by FIFA.9 In the Netherlands, the KNVB regulates the training compensation due in national transfers in the Regulations on General Transfer Provisions, Training Compensation and Solidarity Contribution [Reglement overschrijvingsbepalingen algemeen, opleidingsvergoedingen en solidariteitsbijdrage].

3.1.1 The KNVB and the Regulations on General Transfer Provisions, Training Compensation and Solidarity Contribution

The Regulations on General Transfer Provisions, Training Compensation and Solidarity Contribution were established during the KNVB association's meeting on 15 June 1987. Amongst other things, these regulations cover training compensation which must be paid by a club which is a member of the KNVB to other clubs which are also members of the KNVB. According to this regulation, training compensation is due to the clubs for which the player is authorised to play during his training period if a player is younger than 22 and has played in five binding matches of the first eleven of a professional football club, or if a player younger than 22 has signed a player's contract with a professional football club. …

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