Regulation and calculation of the training allowance
The training allowance and the calculation of the training allowance are regulated in Article 20 and Annex 4 of the RSTP. It is due when a player concludes his first professional contract and for any international transfer until the end of the season in which he turns 23, both during and after the end of the agreement binding a player to a specific club. The years of training that are taken into account are those from 12 to 21 years, unless the concrete facts show that a player has ended his training period earlier.
In three cases no training compensation is due. Firstly, when the previous club has broken the contract with the player without valid reason. Secondly, when a player is transferred to a category 4 club (see infrastructure). Finally, when a player obtains amateur status. FIFA has included an additional situation for the EU in which no training compensation is due. Particularly when the previous club does not give the player a new contract that has at least the value of the contract the player already had with that club. This rule has its origins in the Bosman judgment, which is discussed in part 3 of this series.
FIFA has developed a four-category system, in which each club is classified based on level and investment in youth training. A fixed amount is linked to each category that must correspond to the amount that a club spends annually on youth training, multiplied by the so-called ‘player factor’. This is the number of players that need to be trained to produce a professional player.
The training allowance is calculated by multiplying the number of years of training at the previous club by the training costs of the new club, as determined by the category within which this club falls. When a player moves from a lower club to a higher club, the training costs of the higher club are taken into account. When a player moves from a higher club to a lower club, the training costs of the lower club are taken into account. To calculate the compensation for the years of training between the player’s 12th and 15th birthday, the 4th category should be used as a starting point.
Once again, an exception has been provided for transfers within the EU. Here the training fee is calculated by taking an average of the category of the selling and recruiting club, at least when the selling club is of a lower category than the recruiting club. This attempts to meet the requirement of the Court of Justice Bosman judgment had stated that the reimbursement should be aligned with the actual training costs.
When signing a player’s first professional contract, each club that has trained the player since his 12th birthday is entitled to a part of the compensation, pro rata to the number of years of training. For any subsequent transfer until the season in which the player turns 23, only the player’s last club is entitled to a training allowance.
An example of the calculation of the training allowance
Confederation — Category 1 — Category 2 — Category 3 — Category 4
AFC — USD 40 000 — USD 10 000 — USD 2000
CAF — USD 30 000 — USD 10 000 — USD 2000
CONCACAF — USD 40 000 — USD 10 000 — USD 2000
CONMEBOL — USD 50 000 — USD 30 000 — USD 10 000 — USD 2000
OFC — USD 30 000 — USD 10 000 — USD 2000
UEFA — EURO 90 000 — EURO 60 000 — EURO 30 000 — EURO 10 000
The table above contains the training costs per category, determined by FIFA in 2018.
A simple example of a calculation, illustrating the above principles:
Player From the season in which he turns 16 to the season in which he turns 21, he plays for a German club B of the 3rd category. Ultimately, he signs his first professional contract in the season in which he turns 22 with a Dutch club C of category 1.
As a result of signing the professional contract, club A and club B are entitled to a training allowance.
Club A is entitled to 4 x 10,000 = 40,000 euros. Even though club A belongs to category 2, between the ages of 12 and 15 the training costs of category 4 should be assumed. Club B is entitled to 6 x ((90,000 + 30,000)/2) = 360,000 euros. Since player
Previous parts: part 1 link