Fifa, football’s global governing body, has announced details of Fifa Clearing House, which will seek to ensure that smaller clubs get a fairer share of fees when selling players they have developed themselves.
Fifa’s Regulations on the Status and Transfer of Players (RSTP) were introduced in 2001. The governing body said that while the original objectives and principles of the transfer rules remain sound, the “prevailing circumstances and worrying trends” of the current transfer market indicate that these objectives have not been fully achieved or are being undermined.
President Gianni Infantino has repeatedly expressed his desire to introduce fundamental changes to the transfer market and Fifa said one of the key worrying trends that has emerged is the effective payments associated to the existing Training Rewards mechanisms.
According to Fifa, the gap between the solidarity contribution and training compensation rewards due to “training clubs” and the actual training rewards paid by “engaging clubs” to these training clubs is growing every season.
With this in mind, it is hoped the Fifa Clearing House will effectively ensure the payment of the Solidarity Contribution and Training Compensation amounts to training clubs, with the potential to increase the amount of money distributed to these teams by up to four times.
Fifa Clearing House is set to be a separate entity under the full control of Fifa and will be in charge of processing payments related to Training Rewards between clubs. Fifa would calculate the Training Reward payments and communicate them to Fifa Clearing House, which would act as a central counterparty in these payments and perform required checks.
The Clearing House would ensure that money paid by the new club is correctly distributed to the training clubs based on a global electronic player passport system and in compliance with national and international financial regulations.
Fifa estimates that around $400m (€359m) a year will be paid through the new entity, comprising more than 14,000 transactions. Fifa is opening a tender process for companies to submit proposals to support the establishment and operation of the Clearing House.