In line with the 2001 Agreement concluded between FIFA and the European Commission, the 2001 edition of the FIFA Regulations on the Status and Transfer of Players (“FIFA RSTP”) witnessed the introduction of the solidarity mechanism. The rationale behind the solidarity mechanism was to ensure a redistribution of a proportion of income to the clubs involved in the training and the education of young players, including amateur clubs.
The solidarity mechanism is intended to foster the training of young players by awarding all clubs that trained the player throughout his career by letting them partake in the possible financial rewards of a transfer of the Player at a later moment in his career. Whereas the solidarity percentage of 5% that applies to every transfer fee may be considered by some to be rather low, the financial returns for a training club may in their turn be sbstential. Keeping in mind the potential windfalls, one would reasonably assume that clubs are fully familiar with the concept of solidarity mechanisms as set out in the FIFA RSTP, be it both in relation to their entitlements under the mechanism and also in relation to their obligations. But there are often questions regarding the solidarity mechanism, and cases on solidarity contribution regularly feature on the agenda of the FIFA Dispute Resolution Chamber. Consequently, it is vital to have some understanding of the jurisprudence developed by the FIFA Dispute Resolution Chamber and the Court of Arbitration for Sport.
Millions of receivables are not claimed every year.
Regulation of the Fifa
In the Fifa regulations concerning the "status and transfer of players", the solidarity mechanisms are regulated in Punkt VII / Artikel 21 . This means:
If a player is transferred before the expiration of his contract, all clubs that have contributed to his training and training receive a part of the compensation paid to his former club (solidarity contribution) . 5% of any compensation paid to the former club shall become payable as a solidarity contribution.
Potential for clubs
In 2015, 13,558 international transfers were made with a total ransfersum of 4,180 million USD. Around 209 million should be paid to the training clubs through FIFA's solidarity mechanism. The analysis of the ECA over several seasons clearly showed that 80% of the solidarity contributions were not requested.
Challenge for clubs
International exchanges on 3rd clubs are often under the perception limit for many clubs and the solidarity contribution is not called for.
Due to the increasing number of tranfers and the increasing number of player fluctuation, it is almost impossible for clubs to have a complete overview of all transfer - where a basic solidarity contribution is in principle.
In practice, the solidarity contribution has to be offset by the training clubs - only 20% of the solidarity contributions are actually paid out!
This is where our service starts. With Transfermonitor.com, you are proactively informed about a change of your former players. We offer you a detailed transfer presentation from your former players, in which you are possibly entitled to a solidarity contribution. With the help of our specially programmed solidarity calculator, you can comfortably claim your contribution and do not miss future claims.