Read Andrew Smith’s article which has been published on LawInSport.
This article considers the operation of Article 21 of the FIFA Regulations on the Status and Transfer of Players (RSTP), which provides as follows:
“If a professional is transferred before the expiry of his contract, any club that has contributed to his education and training shall receive a proportion of the compensation paid to his former club (solidarity contribution). The provisions concerning solidarity contributions are set out in Annexe 5 of these regulations.”
This summary guide addresses the following issues regarding solidarity payments:
- The extension of the solidarity payments regime to certain domestic transfers.
- What solidarity contribution is payable, to whom and in what proportions?
- Can clubs agree who shall bear the financial burden of the solidarity contribution?
- Loan agreements.
- ‘Cash plus player’, or ‘player swap’ deals.
- ‘Buy out’ clauses.
- The timeframe for making solidarity payments.
- Disputes regarding solidarity payments.
- Key takeaways