Small clubs’ efforts to be rewarded through AIFF’s Training Compensation

PANJIM: The All India Football Federation (AIFF) finally came up with a path-breaking plan with the introduction Training Compensation in the AIFF regulations from the current football season (2019-20), which will prove to be the win-win situation to everyone involved in the development of football in India.

The newly introduced article 26 of the amended Regulations on the Status and Transfer of players will give hope and much needed rewards to clubs involved in the development of players especially all the village clubs and clubs plying their trade in the lower division leagues in the State.

Article 26 states that “Training compensation shall be paid to a player’s training club(s): (1) when a player signs his first contract as a professional, and (2) each time a professional is transferred until the end of the season of his 23rd birthday. The obligation to pay training compensation arises whether the transfer takes place during or at the end of the player’s contract. The provisions concerning training compensation are set out in Annexe-4 of these regulations. The principles of training compensation shall not apply to women’s football.”

In simple words, every club involved in grooming and training an individual/ player shall be rewarded for their efforts in training a budding talent by the clubs who shall acquire/sign the talents. This is a huge boost to all the smaller clubs which were continuously thriving in promoting and developing talents.

Young players are beneficiaries of this training at youth academies who play the role of a breeding ground to build a generation of talented footballers. There is a big cost involved to train and nurture a player, (direct and indirect) incurred by these feeder clubs.

And the inclusion of Training compensation is to reward the trainee clubs adequately for their investments in the training and developing the players at an early age.

A player’s training and education takes place between the ages of 12 and 23. Training compensation shall be payable, as a general rule, up to the age of 23 for training incurred up to the age of 21, unless it is evident that a player has already terminated his training period before the age of 21.

Who pays whom? —The new club of the budding player will pay training compensation to player’s former club. It will be paid in two scenarios’ – 1. when a player is registered as a professional for the first time.  2. when a professional is transferred between two clubs in India (whether before or at the end of the contract). 

In order to calculate the training compensation the clubs have been categorized in four categories. Category 1: Clubs participating in the Indian Super League (ISL)— Rs 2,00,000; Category II: Clubs participating in the I-League —Rs 1,50,000; Category III: Clubs participating in 2nd Division League — Rs 75,000; Category IV: All other clubs which are participating competitions/ Leagues Competition Management System —Rs 50,000.

Eg: If X plays for Club D (Category IV) from 12-15 years (4 years) and then acquires transfer to Club C (Category III)  then Club C will have to pay Club D a sum of Rs 2,00,000 (50,000 x 4 years).

If  X then plays for Club C (Category III) from 16-17years  (2 years) before moving to Club B (Category II), then Club B will have to compensate Club C with Rs 1,50,000 (75,000 x 2 years) and so on.

The Article 27.1 states that “If a professional player is transferred before the expiry of his contract, any club that has contributed to his education and training shall receive a proportion of the compensation paid to his former club (solidarity contribution). The provisions concerning solidarity contributions are set out in Annexe-5 of these regulations.”

The newly amended constitution will also help the state associations swell to gain some revenue out of the transfers.

The annexe 4.6 states that, “1. An administration fee amounting to 4% (four percent) of any training compensation amount paid under this Annexe shall be payable to the AIFF by the new club.”

Of the 4% (four percent), 2% (two percent) will be distributed equally between the concerned State Association(s) and with concerned District Association(s) with which the professional was registered and trained.”

GFA President Churchill Alemao states, “It’s a good move by AIFF as no state associations had such provisions. The training compensations will help smaller clubs who are constantly developing the players in Goa and across India. AIFF has taken right steps as this will motivate all the clubs henceforth and everyone will be rewarded for their efforts in developing the talent.”

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