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Services for national associations

What kind of compensations can the Association be eligible for?

Each club, which made a contribution to the training and education of the player, has a right to financial compensation. But what happens if one of these clubs ceases to exist? What happens, if the club, illogically, is not interested in receiving financial compensation, i.e., undertakes no action in order to receive it?

In these cases, FIFA decided, that the sums of compensation, which are due to such clubs, must be received by the national association. The association, by providing organizational and often financial support, assisted in the player’s training.

FIFA Regulations on the Status and Transfer of Players state the following:

Annexe 5 art2 p3
“If a link between the professional and any of the clubs that trained him cannot be established within 18 months of his transfer, the solidarity contribution shall be paid to the association(s) of the country (or countries) where the professional was trained...”

Why are the vast majority of the National Associations not receiving the compensation they are eligible for?

This is caused by two main factors:

1. Organizational difficulties

Dealing with the compensation calculations requires constant market monitoring and experience in working within sports arbitration courts. Moreover, compensation payouts are not a stable source of income. As a result, even where the national association delegates compensation cases to in-house lawyers, it is likely, that these lawyers can, in an unsuccessful year, end up without any practical work. Nevertheless, their wages would still have to be paid.

Alternatively, practice shows, that if the in-house lawyer is entrusted to deal with compensation payouts, he does not usually have time to complete it to the highest of standards.

2. Unwillingness

This is an additional factor, which leads to the association not receiving the sum of compensation. At first glance, this contradicts logic, but the representatives of the national associations sometimes manage to find very original reasons for not doing so. Below we give an example of our company’s negative experience in this area.

The best route for the National Association

Taking into account the organizational difficulties, which the association can face and which were mentioned above, working with the solicitor or the legal firm, can be the simplest and most effective solution. In this case, the selection criteria must not only be based upon experience and knowledge of the law, but also upon the organizational ability of the solicitor to process a large volume of information very quickly.

Below we state the advantages of working with our company, which in our view are essential for the national association to consider.


Examples of negative experiences

Please, find below the extracts from the dialogues we have had during our visits to the Associations, who were inclined to accept our help with compensation cases.

Visit to the association A

Legal League:
We propose to assist you obtain sums of compensation, which your clubs were informed of, but in which they showed no interest. These funds can be used for further development of the football in your country.

Federation:
It is very strange that the clubs are not interested. But in any case, we think that we do not have the moral right to receive the money, which belong to our clubs.

Legal League:
But indeed, if you do not take any action, then this money will never reach your country.

Federation:
We will notify the clubs in question and they will undertake the necessary action.

Result: We have reliable information, that none of the funds, mentioned above, were received by the clubs or the federation of this country.

Visit to the association B

Legal League:
We propose to help you obtain sums of compensations, which your clubs were informed of, but in which they showed no interest. These funds can be used for further development of football in your country.

Federation:
We have good personnel, our lawyers regularly attend the necessary FIFA seminars and they can independently deal with these cases.

Legal League:
Indeed, but up to this moment you have received nothing

Federation:
Our new management is working on it

Result: We have reliable information, that none of the funds, mentioned above, were received by the federation of this country.