In the world of professional football, the development of young players is one of the fundamental pillars for the growth of the sport and for the sustainability of clubs, both large and small. Recognizing this importance, FIFA established training compensation in the Regulations on the Status and Transfer of Players, and regulates it in detail in Annex 4.
What does Annex 4 of the Regulations regulate?
Annex 4 focuses exclusively on training compensation and establishes the rules that determine when, how, and to whom this concept should be paid. According to the regulations, training compensation is paid to the club or clubs responsible for the player’s training and education when the following situations occur:
When a player registers as a professional for the first time.
With each transfer of a professional player until the end of the calendar year in which he turns 23.
This means that the obligation to pay is triggered not only with the first professional contract, but also with subsequent transfers, provided the player falls within the aforementioned age range.
How is the compensation amount determined?
The calculation is based on the training costs determined by FIFA for each association and club category. Annex 4 indicates that the amount must reflect the investment made in a player’s development between the ages of 12 and 21. The average annual cost a club invests in training a player, multiplied by the number of years of training at each club, is used as a reference.
For example, if a player was at a training club from the age of 14 to 17 (four seasons), that club will receive proportional compensation for those specific years.
The document also establishes that the amount may be reduced if it is proven that the training in question did not meet the expected standards.
Importance of the Player’s Passport
The player’s passport is the key document for determining training clubs. This document includes all periods of a player’s registration with clubs since the year they turned 12. Thanks to this detailed history, it is possible to identify which clubs are eligible for compensation.
Annex 4 makes it clear that the obligation to issue and update this passport falls on the national associations. Furthermore, when a transfer occurs, the receiving club must receive this passport before completing the player registration process.
Payment of Compensation: Timing and Conditions
Annex 4 stipulates that compensation must be paid to the training club or clubs within 30 days of the player’s registration with the new club. This provision aims to avoid delays and ensure that training clubs receive the funds in time to reinvest in their training structures and programs.
Furthermore, if there are multiple training clubs, the compensation is distributed proportionally according to the training period each club has provided to the player.
Special Cases and Exemptions
Annex 4 does not explicitly mention the exclusion of women’s football in this version of the regulations (unlike previous versions). This means that, in principle, the system applies to all eligible professional players, regardless of gender, unless national associations indicate otherwise or there are additional specific provisions.
It also clarifies that training clubs may waive the compensation, but this must be reflected in writing.
Contrast with the solidarity mechanism
Although Annex 4 only addresses training compensation, the general regulations mention the solidarity mechanism, regulated in Annex 5. This mechanism is activated when a professional player is transferred before the end of his contract and aims to distribute 5% of the transfer fee among the clubs that participated in his development between the ages of 12 and 23.
It is important to emphasize that both systems have similar objectives—rewarding training efforts—but operate independently and with different rules.
Conclusion: Protection and Incentive for Training
The training compensation system described in Annex 4 is a vital tool for incentivizing clubs to invest in the development of young talent. Through this mechanism, clubs that train and educate players receive direct financial recognition, helping to sustain the football pyramid and ensure continuity in the training cycle.
Thus, Annex 4 reinforces FIFA’s mission to ensure equity and sustainability in the global development of football, protecting smaller clubs and fostering real opportunities for young players around the world.