Academies to get major financial boost as AIFF implements training compensation and solidarity contribution

The All India Football Federation (AIFF), in line with FIFA regulations, has implemented a system of ‘Training Compensation’ and ‘Solidarity Contribution’ which will be applicable to player registration and transfer of professional domestic players from the 2020-21 season onwards.

When a player signs his first professional contract, the club would have to pay a certain amount as ‘training compensation’ to academies or clubs in which he has trained during his formative years. This fee will have to be paid each time he switches clubs until the end of his 23rd birthday, for training incurred up to the age of 21.

For example, if a player moves to club Y at the age of 18, Y must pay all the academies he has played in, a training compensation. Similarly, when he moves on from Y before his 23rd birthday, his new club must pay compensation to Y as well (more detailed explanation on this below).

The club must transfer the amount within 30 days of registration to each club with which the player has previously been registered and has contributed to his training starting from the season of his 12th birthday. 

The amount payable is calculated on a pro-rata basis according to the period of training that the player underwent with each club.   

AIFF has divided the clubs divided into four categories and has set a fee for each category.

Categories	Clubs	Fee (INR)
Category I	Clubs participating in the Indian Super League	2,00,000
Category II	Clubs participating in the I-League	1,50,000
Category III	Clubs participating in the 2nd Division League	75,000
Category IV	All Other Clubs which are participating in Competitions/ Leagues registered on AIFF Competition Management System	50,000

Let us now look at how the training compensation is calculated. 

The training costs for players for the seasons between their 12th and 15th birthdays (i.e. four seasons) shall be based on the training and education costs of category 4 clubs (INR 50,000). 

Suppose a player, whose age is 12, gets inducted into a Category III academy (ex: Mohammedan Sporting SC) and spends five seasons in that academy. When he is 17, he joins a Category I academy (ex: FC Goa Academy). At 18, he signs a professional contract with a Category I club (ex: ATK MB FC). So the amount that needs to be paid by the acquiring club (ATK MB FC) would be: (50,000 * 4) + 200,000 + 200,000 = 600,000. 

Mohammedan will receive INR 400,000 whereas FC Goa will get INR 200,000. 

After playing two seasons with ATK MB FC, the player joins Chennaiyin FC (just as an example). Then Chennaiyin will have to pay ATK MB 400,000 (200,000*2). Subsequently, after spending two seasons with Chennaiyin, he is transferred to NEROCA FC. Then NEROCA will pay Chennaiyin 150,000 since it is a category II club and the player has spent only one season before his 21st birthday with the Marina Machans. 

Additionally,  an administration fee amounting to four per cent of any training compensation amount shall be payable to the AIFF by the acquiring club each time he is transferred. 

Solidarity Contribution

If the player is transferred before the expiry of his contract, any club that has contributed to his education and training shall receive a percentage of the compensation. There is no age limit to this. So if the player who is aged 30 moves to a new club involving a transfer fee, the buying club will pay a certain percentage of the transfer fee as a solidarity contribution to the club(s) involved in his training and education over the years. 

This solidarity contribution reflects the number of years (calculated pro rata if less than one year) he was registered with the relevant club(s) between the seasons of his 12th and 23rd birthdays, as follows:

• Season of 12th birthday: 5% (i.e. 0.25% of total compensation)

• Season of 13th birthday: 5% (i.e. 0.25% of total compensation)

• Season of 14th birthday: 5% (i.e. 0.25% of total compensation)

• Season of 15th birthday: 5% (i.e. 0.25% of total compensation)

• Season of 16th birthday: 10% (i.e. 0.5% of total compensation)

• Season of 17th birthday: 10% (i.e. 0.5% of total compensation)

• Season of 18th birthday: 10% (i.e. 0.5% of total compensation)

• Season of 19th birthday: 10% (i.e. 0.5% of total compensation)

• Season of 20th birthday: 10% (i.e. 0.5% of total compensation)

• Season of 21st birthday: 10% (i.e. 0.5% of total compensation)

• Season of 22nd birthday: 10% (i.e. 0.5% of total compensation)

• Season of 23rd birthday: 10% (i.e. 0.5% of total compensation) 

Taking a cue from the example in training compensation; Mohammedan, ATK MB, Chennaiyin, and NEROCA are liable to get solidarity contribution every time the player signs for a new club wherein a transfer fee is involved, until the end of his career.

So if a player gets transferred for INR 100,000 the solidarity contribution fee will be INR 5000 (5 per cent of transfer fee). 

Hence Mohammedan Sporting will get 30 per cent (5*4 + 10) of 5000 i.e. 1500. FC Goa will get 10 per cent of 5000 i.e. 500. Whereas, ATK and Chennaiyin will get 20 per cent of 5000 each i.e. 1000 respectively. NEROCA FC will also get 20 per cent since he’s spending two seasons before he is 23 there. So they get INR 1000 (20 per cent of 5000) as well.

Exceptions

However, the training compensation will not be applicable if the player is transferred to a category IV club (a club that does not participate in I-League, Indian Super League (ISL), 2nd Division).  Or, a professional player reacquires amateur player status on being transferred. Or, the former club terminates the player’s contract without just cause (without prejudice to the rights of the previous clubs). 

The players’ career history from the 2019-20 season will only be considered. His history before that season will not be taken into account. Moreover, the principles of training compensation shall not apply to women’s football for now.

The AIFF Disciplinary Committee may impose disciplinary measures on clubs or players that do not observe the obligations.