Solidarity Mechanism in Football/Soccer
Solidarity Mechanism in Football/Soccer
⚖️The Solidarity Mechanism in the FIFA Regulations on the Status and Transfer of Players:
The Solidarity Mechanism is a legal concept established by FIFA in its Regulations on the Status and Transfer of Players (RSTP), whose purpose is to guarantee financial compensation to clubs that have participated in the training and education of a professional player.
It is expressly regulated in Article 21 and developed in Annex 5 of the RSTP.
📜Legal basis:
Article 21 of the RETJ states:
“If a professional player is transferred during the term of a contract, any club that has contributed to his training and education shall receive a share of any compensation paid to the previous club (solidarity mechanism). The distribution and payment of this compensation shall be made in accordance with Annex 5.”
Annex 5 sets out the conditions, the applicable percentage, and the criteria for distributing the payment among the training clubs.
⚙️How the system works:
The Solidarity Mechanism operates exclusively in international transfers of professional players—that is, when the move occurs between clubs from different federations affiliated with FIFA—and only if the transfer involves the payment of financial compensation. it is important to emphasize that even if the transfer takes place between clubs belonging to the same association or federation, it would still be applicable in exceptional cases when the training clubs belong to a different association or federation, as this would add the international dimension required for this right to be enforced.
The system stipulates that up to 5% of the total transfer fee must be allocated to the clubs that participated in the player's training between the ages of 12 and 23.
📊Percentage distribution:
FIFA distributes this 5% according to a progressive scale:
·Age of the player during training
·Percentage of the total transfer fee allocated per year
·From 12 to 15 years old 0.25% for each year
·From 16 to 23 years old
·0.50% for each year
·The sum of the percentages corresponding to all training clubs cannot exceed 5% of the transfer fee.
🧾Practical example:
Let's imagine that a player was trained at Big Dream Sports Club between the ages of 12 and 18, and is now transferred from Club A (Spain) to Club B (England) for €10 million.
Five percent of the transfer fee, or €500,000, is reserved for the solidarity mechanism.
Big Dream Sports Club will receive the portion corresponding to the years the player was in its youth academy:
That is, from the ages of 12 to 15, the training club will receive €25,000 (based on 5% of 5% of the total value established in this case for solidarity compensation) for each year, which would be a total of €100,000.
And for the ages 16, 17, and 18, the training club will receive €50,000 (based on 10% of 5% of the total value established in this case for solidarity compensation) for each year, which would be a total of €150,000.
In total, Big Dream Sports Club will receive:
€100,000 for years 12, 13, 14, and 15 of the player's training and €150,000 for years 16, 17, and 18 of the player's training, for a final total of €250,000 in compensation derived from the solidarity mechanism.
🌍Processing and execution:
Annex 5 of the RETJ establishes the payment procedure, indicating the different scenarios that we can see below:
1. In cases not subject to the FIFA Clearing House Regulations, the new club must pay the training club or clubs the solidarity contribution in accordance with the above provisions, no later than 30 days after the player's registration or, in the case of partial payments, 30 days after the date of such payments.
2. In cases not subject to the FIFA Clearing House Regulations, it is the responsibility of the new club to calculate the amount of the solidarity contribution and distribute it in accordance with the player's career history, as recorded in the player's passport. If necessary, the player shall assist the new club in fulfilling this obligation.
3. In cases subject to the FIFA Clearing House Regulations, the solidarity contribution shall be paid in accordance with those regulations.
4. An association shall be entitled to receive the percentage of the solidarity contribution which would in principle be due to one of its affiliated clubs, if it can provide irrefutable proof that the club where the professional was trained and educated no longer participates in organized soccer or no longer exists, in particular due to bankruptcy, liquidation, dissolution, or loss of affiliation.
This compensation shall be allocated to youth football development programs of the association or associations concerned. The Disciplinary Committee may impose disciplinary measures on clubs that fail to comply with the obligations set out in this annex.
Payment under the solidarity mechanism must be made by the new club (the acquiring club) to the previous club, which is obliged to distribute the sums proportionally among the training clubs in accordance with the player's history as recorded in FIFA's Transfer Matching System (TMS).
In the event of non-compliance or dispute over percentages or beneficiaries, the FIFA Dispute Resolution Chamber (DRC) has jurisdiction to resolve the matter.
⚖️Legal and practical purpose
The Solidarity Mechanism serves a dual purpose:
Financial recognition for training clubs for their contribution to the player's development.
A redistributive instrument that allows for financial balance in the football ecosystem, benefiting entities that, although small, have invested in talent development.
This mechanism complements the Training Compensation (regulated in Articles 20 and Annex 4 of the RETJ), but differs from it in that it is activated in every international transfer for consideration, whether it is a permanent transfer or a loan during the player's professional career, and not only when they sign their first professional contract.
Conclusion.
The Solidarity Mechanism is a key tool in international sports law, aimed at promoting the sustainability of the training system and economic justice among clubs.
Thanks to this regulation, a player's professional success not only benefits the big clubs, but also those who participated in their development from the lower categories.
