FIFA compensation to boost youth football structures

Mar 12, 2008

DESPITE the continued clamour for the 26,250 euros (sh65m) to be paid by Red Bulls Salzburg to Ibrahim Sekagya’s former Ugandan teams, the principle behind the money embodies another reason for local clubs to invest in young blood.

By Charles Mutebi

DESPITE the continued clamour for the 26,250 euros (sh65m) to be paid by Red Bulls Salzburg to Ibrahim Sekagya’s former Ugandan teams, the principle behind the money embodies another reason for local clubs to invest in young blood.

A host of Ugandan soccer clubs already seem out of their depth running a first team to think about burning their candles in another direction.

However, the potential proceeds inherent in developing quality players who can cut the professional grade in Europe might spark a mass conversion.

For the cold truth is selling talent abroad is and will remain for a while the best potential of inflow for clubs in the Ugandan league.

According to FIFA’s new players compensation schemes, Ugandan clubs stand to earn more than the outright reward they would get for a direct sell of players.

World football governing body’s Training Compensation and Solidarity Contribution schemes stipulate that nurturing clubs should be paid when players they once trained are bought at whatever point in their careers. This only applies when players move from category IV clubs, in which Uganda falls, to higher ranked clubs in categories III, II and I.

Most clubs in Europe are in category I while several in South Africa, Egypt, Tunisia, Morocco and Nigeria are in category II. The Solidarity contribution is the more appetizing of the two.

According to FIFA rules, if a professional moves during the course of a contract, 5% of any compensation, not including training compensation paid to his former club, shall be deducted from the total amount of this compensation and distributed by the new club 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 a player was registered with the relevant club(s) between the seasons of his 12th and 23rd birthday calculated on what FIFA terms the Pro Rata basis as shown in the table.

For instance, if Express FC sold to SC Villa a talismanic Abel Dhaira whom they bought from KCC, before the Jogoos sold him to England’s Arsenal, both the Super Eagles and KCC would benefit.

The two clubs would be entitled to FIFA’s Solidarity contribution for the time they trained him under the age of 23.

If he joined Express at 15, and was sold to Villa five years later from where he joined Arsenal for 3 million euros, the Gunners would have to pay a Solidarity contribution of 5% (150,000 euros) of that figure to the Ugandan clubs.

Express’ portion would be 55% of the total solidarity contribution of 150,000 euros, which is about 82,000 euros.
It is this kind of contribution that Sekagya’s club have released to his former outfits for his training in Uganda between 1992 - 1995.

KAYOFA, Equatorial, KCC FC, and State House; will be accordingly rewarded; the latter getting 32.5 million of the total amount.

This could also mean local clubs which contributed to the training and education of Ugandans in South Africa’s Premier League can lobby for their cut.
Meanwhile, the Training Compensation is paid when a player becomes a professional for the first time to every club which participated in his training and education.

The most that a category IV club(s) would receive for a former player’s annual training costs is 2000 euros multiplied by the actual number of years he trained with them.

The club(s) must however make its claim(s) in thirty days following the registration of the professional with the new association.

The rules add: “If a link between the professional and any of the clubs that trained him cannot be established, or if those clubs do not make themselves known within 18 months of the player’s first registration as a professional, the training compensation shall be paid to the association(s) of the country (or countries) where the professional was trained,” for investment in youth football development programmes.

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