Requirements for transfer fee, training and education compensation and solidarity funds
The world of football is characterized by frequent player transfers and large financial transactions. With nearly 17,000 international transfers annually worth over seven billion euros, legal challenges often arise related to the payment of transfer fees, training compensation and solidarity funds. The law firm SMEs Sports Lawyers has extensive experience in assisting clubs in such cases and ensures fair treatment in national and international forums.
What are transfer fees, training and education compensation and solidarity funds?
Transfer Fee
A transfer fee is the financial compensation a club pays to another club to acquire a player’s contract. Disputes may arise if:
The transfer fee is not paid in full or within the agreed deadline.
There is disagreement about the terms of the transfer agreement.
Training and Education Compensation
Training compensation is a payment intended to ensure that clubs which have invested in developing young players are compensated when the player signs their first professional contract or transfers to a new club. This can lead to disputes if:
Training compensation is not calculated or paid correctly.
Clubs disagree about the player’s age or development period.
Solidarity Payments
Solidarity payments represent a percentage of the transfer fee and are distributed among the clubs that contributed to the player’s development between the ages of 12 and 23. Issues may arise if:
Payments to former clubs are not made.
There is disagreement over the distribution of the funds.
How are disputes handled?
FIFA’s Role
FIFA has established dedicated committees to handle claims related to transfer fees, training compensation, and solidarity payments. The most relevant bodies include:
Dispute Resolution Chamber (DRC): Handles disputes between clubs and players with an international dimension.
Players’ Status Chamber (PSC): Deals with conflicts between clubs related to international transfers.
Appeals to CAS
If a party disagrees with FIFA’s decision, the case can be appealed to the Court of Arbitration for Sport (CAS). CAS provides a final and binding ruling based on sports regulations.
Typical challenges
Missing Payments
Transfer fees, training compensation, and solidarity payments may be withheld, often due to disputes over terms or the financial situation of the club.
Miscalculations
Calculating compensation and solidarity payments can be complex, especially in the case of international transfers.
Delayed Processes
Disputes can be prolonged, which may cause challenges for a club’s finances and planning.
How can Advokatfirmaet SME hjelp?
The sports lawyers at the law firm SME offer expert assistance to clubs facing claims or disputes related to transfer fees, training compensation, and solidarity payments. We assist with:
Negotiation and legal advice: Ensuring that transfer agreements comply with national and international regulations.
Representation in disputes: We represent clients before FIFA’s committees, CAS, and national bodies.
Dispute resolution: Helping to achieve effective and fair outcomes, whether through mediation or legal proceedings.
Do you need assistance with matters related to transfer fees, training compensation, or solidarity payments?
Contact the law firm SME for a non-binding consultation. Our team of experienced sports lawyers is ready to help you.
Contact us today
Contact us today
Whether you are a professional athlete, club manager or advisor – we are ready to help you. Contact us for a no-obligation conversation about how we can assist.
