SA losing millions in FIFA compensation

SA losing millions in FIFA compensation

SA losing millions in FIFA compensation

South African football is losing out on millions of Rands from world governing body FIFA due its outdated regulations relating to the domestic transfers of young players.

On Friday, SAFA published a report on development compensation and solidarity payments, as sanctioned by the FIFA Clearing House (FCH) in 2018.

This relates to monies that kick in when a player is registered as a professional for the first time, and the statement suggested they were making progress on the local front to get Premier Soccer League clubs to reimburse development teams each time a player they groomed was transferred before turning 23 years old.

However, according to Inqaku COO Jason Anderson, many youth clubs are losing out on compensation during domestic transfers of young players and this is something that requires urgent intervention.

"[The FCH] won't pay training compensation automatically, or solidarity for South African-only [transfers]," Anderson told SABC Sport.

"For a player that turns professional or is transferred domestically, where there is no international component - like a player developed in South Africa and signs a PSL contract, as it stands today, unfortunately, SAFA's Regulations on the Status and Transfer of Players, which govern that domestically, are not enforceable.

"But it is something that needs to be addressed and when it's addressed properly then, once again, all of that money can flow automatically and it can be completely transparent on exactly how those clubs should be compensated - when and how much."

It™s estimated that FIFA, through the FCH, will allocate around R6.4-billion to 10 000 clubs each year and, if a fraction of that amount goes to SA, this would be a game-changer.

"The Clearing House has the potential to be a real game-changer in that space, in ensuring clubs are compensated in the way FIFA has designed these rules and the way they deserve," he explained.

"If that can happen, obviously it's money that's needed, when we talk about training compensation it's a few thousand dollars for each year that the player trained at a club.

"A few thousand US dollars to a local or rural South African club is game-changing money to that club - they can buy kit, transport and equipment they need to continue operating and producing high-level talent.

"So, that's a big part of our ambition and aspirations in this space, to enable that flow of money that hasn't existed in the past."

By Mazola Molefe