When a football player signs their first professional contract, the new club is obligated to pay training compensation to the clubs that contributed to the player’s training and development from the age of 12. The amount depends on when and how long the player was at each “training club,” the player’s age, and the category/level of the respective clubs^[1].

Training compensation is also triggered every time the player transfers to a new club as a professional, up until the end of the year in which the player turns 23, although compensation is calculated up to age 21. Compensation is paid from the club signing the player to the last club where the player was registered^[2].

Exceptions to the Right of Training Compensation

A club is not entitled to training compensation if^[3]:

• a) The releasing club unilaterally terminated the contract without just cause,
• b) The player transfers to a lower-level club (e.g., 3rd division or lower in Norway),
• c) The player resumes amateur status, or
• d) The releasing club did not offer the player a professional contract or show genuine interest in continuing the relationship.

Solidarity Payments

According to FIFA’s Regulations on the Status and Transfer of Players (RSTP), when a club pays a transfer fee for a player, up to 5% of that amount must be distributed to the clubs where the player was trained between the ages of 12 and 21^[4].

The rules on training compensation and solidarity payments are also included in the Norwegian Football Association’s transfer regulations (§§ 14–21 and annexes) and apply both nationally and internationally.

The purpose of training compensation and solidarity payments is to reward the clubs that invested in the player’s training and development. This system motivates clubs to invest in youth development, and as a result, many clubs recruit players at a very young age hoping for both athletic and financial returns.

Transfers on the International Football Stage^[5]

In 2022, there were over 20,000 international transfers, including 2,843 players who were bought out of contracts (with transfer fees). A total of $6.50 billion USD was spent on transfer fees. Of these, 54% involved players aged 18–23.

During the summer 2023 transfer window, 10,125 international transfers were recorded, with 1,985 players bought out of contracts. A total of $7.36 billion USD (!) was spent, with 53% involving players aged 18–23. This shows that training compensation and solidarity payments can represent significant financial contributions for clubs involved in player development.

Despite the regulated obligation to pay training compensation and solidarity payments, statistics show that only a fraction has been paid in accordance with the rules. In 2022, $73.1 million USD was paid in solidarity payments, while “only” $12.1 million USD was paid in training compensation.

Due to the large discrepancy between actual payouts and entitled claims, many disputes have ended up before FIFA’s Dispute Resolution Chamber (DRC). In 2022 alone, 1,715 claims were submitted related to solidarity payments and 604 claims related to training compensation—a significant number considering total transfers. The number of cases could likely have been even higher had all clubs been fully aware of their rights and claims.

Clubs’ unwillingness to pay training compensation and/or solidarity payments, and disputes over entitlement or amounts, have long contributed to a high number of DRC cases.

FIFA Clearing House: Background and Launch

To address these challenges and reduce the number of disputes, FIFA decided as early as 2018 to establish a FIFA Clearing House (FCH). After several delays, the FCH was officially launched in autumn 2022, effective from November 15 of that year.

About the FIFA Clearing House: Function and Practice^[6]

The purpose of the FCH is to create greater transparency and ensure that clubs more reliably receive compensation according to the rules. The FCH acts as an intermediary for payments triggered by contract signings and/or transfers.

To support the FCH’s purpose, clubs and national football associations are required to use an electronic player registration system that keeps data such as amateur/professional status and club history updated. If a player changes from amateur to professional domestically, or transfers nationally as a professional, this information and documentation must be sent to FIFA, which then determines whether compensation is triggered according to the FIFA RSTP.

International transfers are registered in FIFA’s Transfer Matching System (TMS) along with all documentation. FIFA then determines if compensation is due.

If compensation is confirmed under the RSTP, a provisional Electronic Player Passport (EPP)^[7] is uploaded to the database and made available to clubs and federations. If a club believes a player was registered with them but is not listed in the EPP, they can request inclusion through their national federation.

Clubs can then review the provisional EPP and provide documentation of any errors—for example, whether a club waived compensation or fulfilled its obligations under the RSTP to maintain its claim.

If the EPP is contested, FIFA will evaluate and update the EPP if necessary. In cases of factual or legal complexity, the dispute is transferred to the FIFA DRC for arbitration.

Once the EPP is finalized, an automatic calculation of compensation is performed and may be appealed to CAS.

The final EPP and calculation basis are sent from FIFA (via TMS) to the newly established independent FCH, which collects the amount from the club that signed the professional contract. The compensation is then distributed to the entitled clubs as defined in the EPP and under FIFA RSTP.

Impact and Advantages of the FIFA Clearing House

Most cases involving training compensation and solidarity payments are not legally or factually complex. The creation of the FCH is expected to significantly streamline the process. It will also ensure that clubs contributing to a player’s development are more reliably compensated under the applicable regulations. This is especially beneficial for smaller clubs that may lack the necessary expertise or resources to assert their rights.

Cases with factual and/or legal complexity will still be handled by the FIFA DRC, ensuring legal protection—especially for clubs with sufficient resources to pursue their claims.

The FCH has only been operational for one year, and its full impact has not yet been evaluated. Still, for many smaller clubs, this “innovation” appears to be a positive development.

Need Assistance?

If your club needs assistance regarding training compensation or solidarity payments—or is unsure whether it may be entitled to compensation in connection with a transfer—Advokatfirmaet SME is happy to offer a no-obligation consultation.

[1] FIFA RSTP Art. 20 and Annex 4 [2] Ibid [3] Exceptions regulated in FIFA RSTP Annex 4, Art. 2.2 and 6.3 [4] FIFA RSTP Art. 21 and Annex 5 [5] Data from FIFA Global Transfer Report 2022 and FIFA International Transfer Snapshot 2023 [6] Procedures set out in FIFA Clearing House Regulations (Oct. 2022 edition) [7] EPP: An electronic document containing a player’s history (federation affiliation, amateur/professional status, and all clubs registered with from age 12)