Solidarity payment, also known as the so-called solidarity mechanism.
Why were presidents of clubs like Stal Szczecin or Arka Gdynia interested, or at least should have been interested, in Grzegorz Krychowiak's transfer to FC Sevilla?
Well, the pride in the fact that a player who trained in their youth groups and junior teams moved to a recognized European club is not the only reason. This transfer meant a tangible financial benefit for the clubs, due to the FIFA regulation known as the solidarity mechanism, according to which clubs where the transferred player played between the ages of 12 and 23 are entitled to a total of 5% of the transfer fee.
In the first post about the process of changing club affiliation by players, I mentioned that the blog will address issues related to player transfers, as well as directly with the solidarity mechanism. What is this mechanism all about? Well, it aims to ensure profits for the clubs that, in a way, "raised" the player in football terms.
The solidarity mechanism is addressed in Article 21 and Annex 5 of the Regulations of the Status and Transfer of Players (RSTP), as mentioned in the blog before1) Regulations of the Status and Transfer of Players. The premise of the mechanism is discussed in Article 21 of the RSTP, which states that if a professional player is transferred before the expiration of their contract, any club that contributed to their education and training will receive a proportional share of compensation paid to their previous club (solidarity contribution). This raises the immediate question of which clubs should be considered "contributing to the education and training of the player"?
The answer to this question can be found in Article 1 of Annex 5 of the RSTP. These are the clubs where the player was registered between the ages of 12 and 23. There are essentially two conditions for calculating the solidarity contribution. Obviously, the player must move to a new club during the validity period of their contract with the previous club (there must be a transfer, the process of changing clubs by the player was described here). Additionally, the player must move from a club belonging to a different association than the acquiring club, meaning international transfers, such as transfers from the French league to the Spanish league.
As mentioned, the total amount due to the clubs that trained the player is 5% of the transfer fee, distributed to the clubs where the player was registered in the seasons between the ages of 12 and 23, according to the following proportions:
- Season in which he completed his 12th year:
5% (meaning 0.25% of the total compensation)
- Season in which he completed his 13th year:
5% (meaning 0.25% of the total compensation)
- Season in which he completed his 14th year:
5% (meaning 0.25% of the total compensation)
- Season in which he completed his 15th year:
5% (meaning 0.25% of the total compensation)
- Season in which he completed his 16th year:
10% (meaning 0.5% of the total compensation)
- Season in which he completed his 17th year:
10% (meaning 0.5% of the total compensation)
- Season in which he completed his 18th year:
10% (meaning 0.5% of the total compensation)
- Season in which he completed his 19th year:
10% (meaning 0.5% of the total compensation)
- Season in which he completed his 20th year:
10% (meaning 0.5% of the total compensation)
- Season in which he completed his 21st year:
10% (meaning 0.5% of the total compensation)
- Season in which he completed his 22nd year:
10% (meaning 0.5% of the total compensation)
- Season in which he completed his 23rd year:
10% (meaning 0.5% of the total compensation)
So, for example, the club where the player played in the season when he turned 12 is entitled to 5% of 5% of the transfer fee. Therefore, if the transfer fee was 1,000,000 euros, the club where the player played in the season when he turned 12 is entitled to 2,500 euros. If the player played in the same club for 5 years, from the age of 12 to 17, the percentage due sums up and amounts to 35% of 5% of the transfer fee. In the specified case, it would be 17,500 euros.
Returning to the example of Grzegorz Krychowiak mentioned at the beginning, assuming the media reports of 6 million euros that Sevilla was said to have paid for the Polish midfielder are true, and relying on the same sources to establish the player's club affiliation, the amounts due from the solidarity mechanism should be approximately as follows. Stal Szczecin, where the player was registered in the seasons 2003/04 and the autumn round of the 2004/05 season, when he turned 13 and 14 years old, should receive an amount of around 22,500 euros 2)in the 2004/05 season, the player changed clubs, so the amount for that year is divided between Stal and Arka. Arka Gdynia, where the Polish representative was registered in the spring round of the 2004/05 season and the 2005/2006 season, should receive an amount of 37,500 euros.
It is also important to note that the solidarity mechanism will apply to each subsequent transfer of the player. Therefore, if the media reports about the interest in Krychowiak from Premier League and Bundesliga clubs and the release clause reserved in the player's contract at the level of 30 million euros turn out to be true, Polish clubs can prepare for a substantial cash injection.
The claim for payment from the solidarity mechanism, according to Article 2(1) of Annex 5 of the RSTP, becomes due within 30 days from the date of the player's registration. However, if payments are conditional 3)contract clauses linking additional compensation to the sporting results of the new club or the player, their due date is within 30 days of the realization of such payments.
This raises the question of whether there is any substitute for the solidarity mechanism when it comes to domestic transfers? Well, the payment for solidarity is not the only one that the acquiring club is obliged to pay to the player's previous clubs. These clubs are entitled to compensation for training (under certain conditions specified in the relevant regulations), and in the case of domestic transfers, an equivalent for the training. However, since these mechanisms differ from the described solidarity mechanism, a separate post will be dedicated to them.
Photo by GonzaloMMD / Foter / CC BY-SA