Editor’s note: Rhys Lenarduzzi is a final semester Bachelor
of Law (LL.B) and Bachelor of Philosophy (B.Phil.) student, at the University
of Notre Dame, Sydney, Australia. As a former professional athlete, then
international sports agent and consultant, Rhys is interested in international
sports law, policy and ethics. He is currently undertaking an internship at the
T.M.C. Asser Institute with a focus on Transnational Sports Law.
In 2019, training
compensation and solidarity contributions based on FIFA’s Regulations on the Status and Transfer
of Players (RSTP) amounted to US$ 75,5 million. This transfer of
wealth from the clubs in the core of the football hierarchy to the clubs where the
professional players originated is a peculiar arrangement unknown in other
global industries. Beyond briefly pointing out or reminding the reader of how these
systems work and the history behind them, this blog series aims to revisit the
justifications for FIFA-imposed training compensation and the solidarity
mechanism, assess their efficacy and effects through a case study of their
operation in the African context, and finally analyse the potential impact of upcoming
reforms of the FIFA RSTP in this context.
First,
it is important to go back to the roots of this, arguably, strange practice. The current transfer system and the legal mechanisms constituting
it were largely the result of a complex negotiation between European football’s
main stakeholders and the European Commission dating back to 2001. The conclusion
of these negotiations led to a new regulatory system enshrined in Article 20 and
Annex 4 of the RSTP in the case of training compensation, and at Article 21 and
Annex 5 in the case of the solidarity mechanism. Before paying some attention
to the historical influences and how we arrived at these changes, as well as the
justifications from the relevant bodies for their existence, let us briefly recall
what training compensation and the solidarity mechanisms actually are. More...