What is training compensation?
Training compensation is a financial reimbursement to a player’s training club(s) when they sign their first contract with a professional club and/or on each transfer until his/her 23rd birthday. The amount payable is calculated on a pro rata basis based on the training period spent with each club between the ages of 12 and 21. In the instance of subsequent transfers, compensation is owed to the former club for the time effectively trained at that location.
When does it need to be paid?
Training compensation needs to be paid within a month of the player signing his/her professional contract.
How is training compensation calculated?
The amount is calculated by multiplying the value amount to the level of training (this is determined by country and club) by the number of years spent training between the ages of 12 - 21. Training compensation paid until the age of 23 for training received up until the age of 21.
Why do different clubs have different financial values given to them?
The training costs are designated for each of the six confederations under four categories of clubs based on the financial investment in training players. The training costs are then set for each category and correspond to the amount needed to train one player for one year multiplied by an average “player factor”, which is the ratio of players who need to be trained to produce one professional player. The resulting figure represents the average cost for training one player at a club in a particular training category.
Are there any exceptions or special cases to training compensation?
Yes, there are a few. We will list them but we suggest our visitors to consult FIFA guidelines to understand the specific details. While the training compensation rates are set for specific ages, FIFA sets particular compensation for players between the ages of 12 - 15. Training during these 4 seasons shall be based on Category Four clubs, regardless of level played. The exception is not valid if the player signs a professional contract before the end season of the player’s 18th birthday. If a player terming his/her training period before the age of 21, training compensation is payable until the end of the season in which the player turns 23. The calculation is then based on the years between 12 and the age when it completed.
What about solidarity payments?
In cases when a player is transferred between different jurisdictions when he/she is still in contract, the fee is then negotiable and 5% of this sum is distributed pro rata to all clubs involved in the training period from his/her 12th birthday.
Can you provide me with resources to learn more about training compensation?
Commentary on the Regulations for the Status and Transfer of Players http://www.fifa.com/mm/document/affederation/administration/51/56/07/transfer_commentary_06_en_1843.pdf
Regulations on the Status and Transfer of Players http://www.fifa.com/mm/document/affederation/administration/02/33/57/66/circularno.1418- regulationsonthestatusandtransferofplayers-categorisationofclubsandregistrationperiods_neutral.pdf