۱- Introduction

۲- The solidarity in the football & the European Union law

۳- Current FIFA solidarity compensation framework in football—critical analysis

۴- Review of alternative approaches to solidarity compensation in football

۵- Conclusion

References

Abstract

The present article discusses key problems related to suitability of the existing solidarity compensation system for the current transfer market in football. It briefly explains the origin, current wording and applicability of the FIFA solidarity framework, adopted in 2001 and consisting of ‘solidarity contribution’ and ‘training compensation’ systems, as well as its consistency with the EU law. Article demonstrates key deficiencies of the FIFA solidarity framework, resulting in the competitive imbalance between football clubs participating in organized football and lack of the efficient, systemic encouragement for training and development of youth players by football clubs. Furthermore, this article includes a review of de lege ferenda proposals aimed to eliminate major flaws of the current framework, enhance solidarity and competitive balance between football clubs as well as to reduce disproportionalities in respect to financial gratification for training clubs of professional football players.

Introduction

The concept of solidarity covers a wide range of aspects connected with the operations of the football market. It varies from the principal theme of this article, i.e., the solidarity compensation framework within the football transfer system, consisting of ‘solidarity contribution’ system (Article 21 and Annex 5 of the FIFA Regulations on Status and Transfer of Players, ‘RSTP’) and ‘training compensation’ system (Article 20 and Annex 4 of the RSTP), through other arrangements of football governing bodies (‘FGBs’), such as UEFA homegrown players’ rule and/or UEFA Financial Fair Play scheme, to rules on the collective selling of media and broadcasting rights to football competitions, tournaments and events. Although such mechanisms differ significantly in terms of their scope, subject matter and/or impact on the functioning of the football market, the point of intersection, i.e., the aim pursued by all such arrangements to the regulatory framework, remains the same—to enforce the competitive balance and solidarity between football clubs and leagues. This article aims mainly to explain the current solidarity compensation framework in the football transfer market adopted by FIFA in 2001. In particular, it presents the perception of the solidarity compensation framework from the European Union (‘EU’) law perspective, includes a brief analysis of the FIFA rules on solidarity contribution and training compensation mechanisms, and addresses key deficiencies of such a framework, preventing FGB from achieving the pursued aims: to serve as an efficient mechanism to distribute the income generated by the biggest football clubs, as well as a systemic encouragement for training and development of youth players by football clubs. Moreover, the analysis contains several suggestions on possible amendments of the solidarity compensation mechanisms in order to adjust them to the realities of current-day football and eliminate their major flaws.