This guidance is applicable to all clubs in the National League System, as well as grassroots (except for their ability to register professional players).
FIFA Training Rewards
Training Compensation
The training compensation system is aimed at encouraging clubs to invest in training and educating young players through the payment of training rewards upon a player becoming a professional. Clubs that recruit ‘ready-made’ players rather than investing in training and educating young players are made to reimburse the clubs who train the players that become professional as they are seen to be benefiting from the training and education provided by those training clubs.
Training Compensation shall be paid to a player’s training club(s):
(1) when a player is registered for the first time as a professional, and he has previously been registered with a club(s) affiliated to a different National Association
In this case, the registering club is responsible for paying TC within 30 days of registration to every foreign club with which the player has previously been registered starting from the calendar year of his 12th birthday to the end of the calendar year of his 21st birthday. The clubs will be listed in the player passport which can be obtained from The FA. The amount payable is calculated on a pro rata basis according to the period of training that the player spent with each club.
(2) each time a professional is transferred between clubs in different National Associations until the end of the calendar year of his 23rd birthday
In this case, TC will only be owed to his former club for the time he was registered with them.
Training Compensation is not due if the player is transferred to a Category 4 club (Step 2 and below); or a player previously registered as a professional reacquires his amateur status on being transferred.
Solidarity Contribution
If a professional is transferred (or loaned) for a fee before the expiry of his contract, the registering club must withhold 5% of the remuneration paid to his former club, and distribute it amongst any club(s) that contributed to his training between the calendar years of his 12th and 23rd birthdays, as follows:
Calendar year of 12th-15th birthdays: 5% of 5% of any compensation
Calendar year of 16th-23rd birthdays: 10% of 5% of any compensation
The compensation will be calculated on a pro rata basis where the player was registered for less than a year.
The registering club shall pay Solidarity within 30 days of the player’s registration or, in case of contingent payments, 30 days after the date of such payments.
The requirement to pay Solidarity applies when the transfer (or loan) takes place between clubs in different National Associations, or when the transfer (or loan) takes place between clubs affiliated to the same Association but the player has previously been registered for a club(s) belonging to another Association.
In some cases, both Training Compensation and Solidarity will be due.
It is imperative that clubs conduct thorough due diligence on all signings, particularly players under the age of 23 who you wish to register as a professional and who have previously registered with a club in another National Association (even if he is joining you from another English club). In these circumstances, you will likely inherit the obligation to pay training rewards, and it would be prudent to be aware of these liabilities before finalising a registration.
Clubs may also be potential beneficiaries of training rewards. In either case, it is important that clubs understand the system which FIFA operates in order to identify and notify clubs involved in training rewards, and to engage with the process, even if you intend to waive your rights to compensation which may be due to your club. This system is the FIFA Clearing House (see separate article).