FIFA - Informe 2024 de la Cámara de Compensación

FIFA Clearing House: the first 24 months

NOVEMBER 20242

Contents 01 . Foreword 3 02. Executive summary 6 03. Introduction 9 04 .

T raining rewards: a recap 12 4.1 T raining compensation 13 4.2 Solidarity mechanism 14 4.3 Changes in the training-reward system 15

05. FIFA Clearing House entity 18 06. From electronic player passport to payment 20 6.1 Integration of domestic systems and provision of registration information 21 6.1.1 Process 21 6.1.2 Results 22 6.2 Electronic player passport 25 6.2.1 Process 25 6.2.2 Results 28 6.3 Compliance assessment and onboarding 32 6.3.1 Process 32 6.3.2 Results 36 6.4 Payments 39 6.4.1 Process 39 6.4.2 Results 39 07 . Disputes and sanctions 44 08. Developments and what's next 46 09 . Methodology 493 01 . Foreword01. Foreword 4 Dear readers, We are delighted to present the first edition of the FIFA Clearing House Report, coinciding with the 24-month anniversary of the FIFA Clearing House’s entry into operation on 16 November 2022. The Clearing House is an ambitious initiative established by FIFA with the aim of changing and shaping the international transfer system and the football regulatory landscape. The first objective of the Clearing House is to make sure that clubs that contribute to the training and education of players in the early years of their careers are rewarded financially. The advent of the Clearing House introduced a new system of automatic entitlement to replace the previous model, which involved direct payments between clubs and the submission of legal claims to FIFA, and under which most of the money (around 80%) was lost. The new system represents a huge improvement. A training club no longer has to track its former players to be aware of its entitlements: following the introduction of

to replace the previous model, which involved direct payments between clubs and the submission of legal claims to FIFA, and under which most of the money (around 80%) was lost. The new system represents a huge improvement. A training club no longer has to track its former players to be aware of its entitlements: following the introduction of the electronic player passport review process, a player’s exact career history is declared and the exact amounts to which a club is entitled are calculated. During these first two years, the first objective has been achieved, and the “lost” money has now been “found”. The second objective of the Clearing House is to process payments of training rewards, while promoting transparency and financial integrity among football clubs. For that purpose, an independent financial institution was created: FIFA Clearing House SAS (FCH), which is based in Paris, fully financed by FIFA and regulated by the French banking supervisory authority (Autorité de contrôle prudentiel et de résolution). Despite initial challenges, significant progress has been made: every month, hundreds of clubs complete the onboarding process, and payments totalling dozens of millions of USD are processed via FCH. The first objective of the Clearing House is to make sure that clubs that contribute to the training and education of players in the early years of their careers are rewarded financially. ”01. Foreword 5 This report provides a comprehensive insight into the first 24 months of the operations of the Clearing House. This includes a numerical breakdown, as we truly believe that “only what gets measured, gets done” and that improvement comes only when the reality is properly measured. The report also showcases best practice and the individual experiences of clubs and member associations, who are key players in the success of the Clearing House project. There are still important challenges ahead and areas for improvement. FIFA and FCH have already begun working on the necessary measures and are fully committed to collaborating with football stakeholders to further improve this revolutionary initiative, bringing clear and transparent rules to the football transfer system and continuing to reinforce its integrity. Y ours faithfully, Emilio García Silvero FIFA Chief Legal & Compliance Officer

have already begun working on the necessary measures and are fully committed to collaborating with football stakeholders to further improve this revolutionary initiative, bringing clear and transparent rules to the football transfer system and continuing to reinforce its integrity. Y ours faithfully, Emilio García Silvero FIFA Chief Legal & Compliance Officer César Chaparro Y edro FIFA Head of Player Registration & T ransfer Data6 02. Executive summary02. Executive summary 7 On 16 November 2022, the FIFA Clearing House officially got up and running following months (and years) of development and preparation. Since that date, every single player transfer or registration that is eligible for training rewards (training compensation or the solidarity contribution) is automatically identified by the FIFA Transfer Matching System (TMS). An electronic player passport (EPP) is generated and is populated based on registration information provided by all member associations and other relevant documentation supplied by the clubs involved. The EPP review process finishes with a final determination and, where an entitlement exists, with an allocation statement listing the exact amounts due to the training clubs. Since the Clearing House went live, more than 36,000 EPPs have been generated, recording the career history of more than 32,000 players worldwide. Many of these EPPs are discarded in the initial phase, primarily in cases where the required international dimension is absent. Nevertheless, a final determination has been reached for almost 10,000 EPPs, leading to the issuance of no fewer than 9,135 allocation statements detailing more than USD 350 million of entitlements for training clubs. Once an allocation statement has been issued, the file is forwarded to the FIFA Clearing House entity in Paris (FCH), an independent and fully regulated financial institution, for further processing. All clubs involved must then pass a compliance assessment, in line with the regulatory obligations applicable to FCH. This procedure consists of various steps. Before substantial due diligence can be performed on a club, some formalities are needed: each club must sign the FCH Terms and Conditions and submit basic information via a dedicated form. Data shows that

in line with the regulatory obligations applicable to FCH. This procedure consists of various steps. Before substantial due diligence can be performed on a club, some formalities are needed: each club must sign the FCH Terms and Conditions and submit basic information via a dedicated form. Data shows that not having completed these first two steps is why a substantial number of clubs initially failed the compliance assessment in the first few months of the FIFA Clearing House’s operations. Still, more than 1,600 clubs worldwide have successfully undergone the compliance assessment and have therefore been accredited by FCH. These clubs come from more than 100 associations and represent all levels of club football (spanning the professional and amateur games) and a vast variety of legal forms and structures. Once the clubs have been accredited, FCH sends a payment notification to the new club and money can flow via FCH. To date, almost one and a half years since the first payments were processed in June 2023, around USD 156.6 million has been distributed in training rewards; this constitutes a striking increase for confirmed payments compared with any of the previous years recorded and tracked in TMS.02. Executive summary 8 In line with FIFA’s commitment to promoting transparency (see, for example, the International Transfer Snapshot and the registration periods calendar ), detailed data for each association is made available online. When presenting the results in this report, Y ear 1 refers to the period between 16 November 2022 and 15 November 2023, while Y ear 2 covers the period between 16 November 2023 and 15 November 2024. The FIFA Clearing House Regulations lay down strict sanctions in the event of non-compliance. These include a registration ban in the case of payment failures, or where the new club fails a second compliance assessment. However, it is very important for FIFA and FCH to distinguish between so -called collaborative and noncollaborative clubs; if a club has failed the compliance assessment for one allocation statement but then passes the assessment for another, it is considered collaborative. A similar approach was taken if a compliance failure was due to a technical error

important for FIFA and FCH to distinguish between so -called collaborative and noncollaborative clubs; if a club has failed the compliance assessment for one allocation statement but then passes the assessment for another, it is considered collaborative. A similar approach was taken if a compliance failure was due to a technical error in the early months of FCH’s operations. In such cases, the file was sent back to FCH without the need to initiate disciplinary proceedings against the relevant club. Essentially, this leaves FIFA disciplinary action reserved for clear cases of non-cooperation and/or manifest breaches of the regulations. Major enhancements of FCH’s systems, platform and processes are under way and the FIFA Clearing House 2.0 will be presented in 2025. The main goal of this important project is to simplify and improve the user experience and the onboarding and payment process, further streamlining the processing and execution of payments via FCH.9 03. Introduction03. Introduction 10 Over the past decade, the football industry has undergone several transformations on and off the pitch, including the unprecedented amounts that football clubs have spent on the transfer of professional players. However, for many years, this was not translating into a proportional increase in the distribution of training rewards (training compensation and solidarity contributions). In fact, there remained a large gap between the value of the rewards due and the amounts actually paid to training clubs. Faced with this chronic issue, on 24 September 2018, the FIFA Football Stakeholders Committee recommended a first reform package for the transfer system, which included the creation of a clearing house to increase the transparency of the system, protect its integrity and reinforce solidarity mechanisms for training clubs. The proposal was approved by the FIFA Council on 26 October 2018 and received the support of several external stakeholders, such as the European Parliament 1 and former US Attorney General Loretta Lynch2. Modernising the transfer system and the associated regulatory framework was one of the primary goals of FIFA’s former blueprint, The Vision 2020-2023 . One of the specific aims of the FIFA Clearing House was to reduce the aforementioned gap

General Loretta Lynch2. Modernising the transfer system and the associated regulatory framework was one of the primary goals of FIFA’s former blueprint, The Vision 2020-2023 . One of the specific aims of the FIFA Clearing House was to reduce the aforementioned gap between the training rewards due and the amount actually paid to training clubs by centralising, processing and automating payments between clubs and replacing the traditional claims process with an automatically triggered entitlement based on a player’s electronic player passport.3 The second objective was to ensure that all clubs and member associations comply with international financial regulations by requiring them to pass a compliance assessment before their payments can be processed. 1 European Parliament resolution of 23 November 2021 on EU sports policy: assessment and possible ways forward. 2 Lynch expressed her support during a keynote address at the third FIFA Compliance Summit, held in 2020. 3 As explained in the FIFA Clearing House go-live webinar in October 2022.03. Introduction 11 The Clearing House went live on 16 November 2022. Rewards for transfers or registrations of players that occurred before that date are still being processed and paid via the old claims system (including for instalments paid after 16 November 2022), while all rewards for transfers or registrations of players that have occurred since that date have been processed and paid via the Clearing House system. The Clearing House project represents a landmark achievement in the football transfer system, underpinning FIFA’s efforts to turn compliance into a key focus of the football ecosystem and guaranteeing that clubs that invest in training and educating young players are duly compensated. This report will go into further detail about the objectives of and regulatory background to the Clearing House’s introduction, as well as the procedure that entered into force on 16 November 2022, the results of the Clearing House’s first two years of operation and the next steps. Being awarded solidarity allowances through the FIFA Clearing House is a historic milestone for our humble provincial club, as this is the first time in our 106 years of existence that we have received such funds. ”

and the next steps. Being awarded solidarity allowances through the FIFA Clearing House is a historic milestone for our humble provincial club, as this is the first time in our 106 years of existence that we have received such funds. ” Celso Daniel Martínez López, President, Club Sportivo Obrero, Paraguay12 04 .

T raining rewards: a recap04. T raining rewards: a recap

13 FIFA’s essential role in the protection and development of football goes beyond organising international competitions and establishing regulations and provisions for the game. With a view to promoting football development and solidarity globally, FIFA has implemented two mechanisms to reward training clubs since 2001: training compensation and the solidarity contribution. These will be described in the following subsections and may arise from three events: a) the first registration of a player as a professional; b) an international transfer of a player; or c) a domestic transfer involving the payment of transfer compensation and with an international dimension. 4.1 T raining compensation Firstly, article 20 of and Annexe 4 to the Regulations on the Status and Transfer of Players (RSTP) provide for the payment of training compensation to reward training clubs that have contributed to the development and education of a player between the calendar year of his 12 th and 21 st birthday if, before the end of the calendar year of his 23 rd birthday, the player is registered as a professional for the first time or is transferred as a professional between clubs affiliated to two different associations. As a general rule, for a player’s first professional registration, training compensation is due to every club with which the player was previously registered as an amateur, provided that the training clubs are affiliated to a different association to the new club. In the case of an international transfer (whether during or at the end of the player’s contract), only the player’s most recent former club (i.e. the club from which the player has been transferred) will be entitled to training compensation, which is determined by the amount of time for which the player was effectively registered with that club. Training compensation is calculated based on each member association’s classification

contract), only the player’s most recent former club (i.e. the club from which the player has been transferred) will be entitled to training compensation, which is determined by the amount of time for which the player was effectively registered with that club. Training compensation is calculated based on each member association’s classification of its affiliated clubs into four categories according to their financial investment in training young players.4 The calculation involves multiplying the amount corresponding to the training category of the new club by the number of calendar years spent at the training club (on a pro rata basis if the player was there for less than one year) between the player’s 12th and 21st birthdays.5 4 FIFA circular no. 1892 defines the categories into which each member association is requested to classify its clubs and the training costs on a confederation basis for each category of club for the year 2024. 5 For training periods during the calendar years of a player’s 12 th to 15 th birthdays, the training compensation is always calculated based on the annual training costs of a category 4 club in the new club’s confederation, in order to guarantee that training compensation for young players is set at reasonable levels.04. T raining rewards: a recap 14 Furthermore, the RSTP also determines exceptional scenarios in which training compensation is not due, namely when a player’s contract is terminated without just cause by the former club, a player is transferred to a category 4 club, or a player reacquires amateur status when being transferred.6 It should also be noted that training compensation does not yet apply to women’s football, although there have been important developments in that regard, including most notably the FIFA Council’s approval in December 2023 of guidelines and a regulatory framework for the introduction of training compensation in the women’s game. In addition, article 6 of Annexe 4 to the RSTP establishes special conditions for transfers between clubs affiliated to associations located within the territory of the European Union/European Economic Area. These special conditions include the general obligation for the former club to have offered the player a contract in order

In addition, article 6 of Annexe 4 to the RSTP establishes special conditions for transfers between clubs affiliated to associations located within the territory of the European Union/European Economic Area. These special conditions include the general obligation for the former club to have offered the player a contract in order to be entitled to training compensation, as well as specific rules for the calculation of training compensation in relation to such transfers. 4.2 Solidarity mechanism Article 21 of and Annexe 5 to the RSTP regulate the solidarity mechanism, whereby an entitlement to a solidarity contribution is triggered when compensation is paid for the permanent or temporary transfer of a player, whether international or domestic with an international dimension. Through this mechanism, up to 5% of the compensation paid for the transfer of the player is distributed to the training clubs with which the player was registered in the calendar years between their 12 th and 23 rd birthdays (calculated pro rata if the registration was for less than one year).7 The RSTP clearly states that any compensation paid within the scope of the transfer, except training compensation, is subject to a solidarity contribution. This therefore encompasses fixed transfer fees, contingent fees, sell-on fees and any other compensation agreed for the transfer of the player. 6 Cf. article 2 paragraph 2 of Annexe 4 to the RSTP (June 2024 edition). 7 The breakdown is as follows, per article 1 paragraph 1 of Annexe 5 to the RSTP (June 2024 edition): (i) calendar years from 12 th to 15 th birthday: 5% of 5% of any compensation (each year); (ii) calendar years from 16 th to 23rd birthday: 10% of 5% of any compensation (each year).04. T raining rewards: a recap 15 Moreover, as also established in article 1 paragraph 1 of Annexe 5 to the RSTP, the new club must withhold 5% of the total transfer compensation to be paid to the former club

(each year).04. T raining rewards: a recap 15 Moreover, as also established in article 1 paragraph 1 of Annexe 5 to the RSTP, the new club must withhold 5% of the total transfer compensation to be paid to the former club in order to proceed with the payment of the solidarity contribution. As a general rule, the solidarity contribution is thus deducted from the compensation agreed between the two clubs and is then distributed, via FCH, to the clubs entitled to receive it. Unlike training compensation, the solidarity mechanism is not subject to an age limit for the player. In other words, every time a professional player is transferred – internationally or nationally with an international dimension – and compensation is paid, regardless of the player’s age at the time of the transfer, the training clubs that contributed to the player’s development and education in the calendar years from their 12th to 23rd birthday will be entitled to a solidarity contribution. The new club is always responsible for the payment of all training rewards due to training clubs via the FIFA Clearing House.8 4.3 Changes in the training-reward system While the substance of the rules described above has remained almost untouched, the process of identifying training-reward entitlements and distributing the relevant funds has changed dramatically since the Clearing House went live in November 2022. Previously, training clubs carried the burden of identifying training-reward triggers and lodging claims if they did not receive the training rewards that they were owed by the new club. This posed great difficulties for clubs – especially those with limited resources – due to the challenge of tracking transfers and registrations of players around the world. Since the advent of the Clearing House, training-reward triggers are automatically identified by the integrated systems 9 and processed through the electronic player passport (EPP) procedure and, after due diligence has been conducted, the amounts are directly distributed to the training clubs, guaranteeing that they receive their fair share for the education and training of players. 8 Cf. article 13.3 of the FIFA Clearing House Regulations (October 2022 edition). 9 Before completing a transfer, clubs can make use of the online calculator provided by FIFA to

are directly distributed to the training clubs, guaranteeing that they receive their fair share for the education and training of players. 8 Cf. article 13.3 of the FIFA Clearing House Regulations (October 2022 edition). 9 Before completing a transfer, clubs can make use of the online calculator provided by FIFA to get an idea of the training rewards to which they may be entitled or which they may be obliged to pay. The results produced by this tool are non-binding and their accuracy depends on the information included, while the exact entitlements are dealt with on a case-by-case basis in the context of each EPP.04. T raining rewards: a recap 16 A high-level comparison between the two systems is provided in Table 1, with the main differences indicated in bold. The results of the shift from the old claims system to the new EPP process can be observed in Figure 1. T able 1. Differences between the old claims system and the new Clearing House system Claims for training rewards FIFA Clearing House T raining clubs become aware of training-reward trigger T raining-reward trigger automatically identified by FIFA (T ransfer Matching System (TMS)/ domestic electronic systems) T raining clubs lodge claim in TMS within two years and 30 days of registration/due payment(s) Creation of EPP and review process executed immediately after training-reward trigger is declared – no claim needed Payments of solidarity contribution triggered from registration with new club and instalment dates Payments of solidarity contribution triggered from upload of proof of payment of transfer compensation Claim managed by FIFA general secretariat EPP review process managed by FIFA general secretariat Proposal by FIFA general secretariat or decision by Dispute Resolution Chamber of FIFA Football T ribunal Determination by FIFA general secretariat; decision by Dispute Resolution Chamber of FIFA Football T ribunal only in cases of factual or legal complexity Club-to-club payments Payments through FIFA Clearing House after successful compliance assessment The FIFA Clearing House has truly been a great step forward,

Determination by FIFA general secretariat; decision by Dispute Resolution Chamber of FIFA Football T ribunal only in cases of factual or legal complexity Club-to-club payments Payments through FIFA Clearing House after successful compliance assessment The FIFA Clearing House has truly been a great step forward, as it has made things much easier for small clubs like ours. In the past, following a transfer, we had to contact the new clubs. They would always offer us figures that were lower than what we’d calculated ourselves. Now, the distribution is fair and equitable. ” Javier Sánchez-Porro, President, CA Gimnástico Don Benito, Spain04. T raining rewards: a recap 17 Figure 1: Claims submitted per quarter and cumulative number of EPPs generated

Q4 2022 532 36,989 34,758 26,848 25,451 19,90017,099 5,708 556 190 663 472 0 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 100 200 300 400 500 600 700 800 900 1,000 2023 2024

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

8,505 377 218 424 235 167 240 59 Claims submitted per quarter EPPs generated (cumulative) It used to be very difficult for us to receive our training compensation or solidarity contributions. But now, through the FIFA Clearing House, everything is clear and transparent. Everything is communicated, and it shows you how much you are entitled to. That money is going to help us produce more players for our community. ” Ibrahim Dawuda, President, T amale Zaytuna FC, Ghana18 05. FIFA Clearing House entity05. FIFA Clearing House entity 19 The establishment of FIFA Clearing House SAS (FCH) as a regulated entity was a key step for the Clearing House project. FCH is in charge of the compliance assessment

05. FIFA Clearing House entity05. FIFA Clearing House entity 19 The establishment of FIFA Clearing House SAS (FCH) as a regulated entity was a key step for the Clearing House project. FCH is in charge of the compliance assessment and of processing payments between clubs. The FCH entity is a FIFA subsidiary that was established in France as a simplified joint-stock company.10 It received a licence to operate as a payment service provider from the French banking supervisory authority, the Autorité de contrôle prudentiel et de résolution (ACPR), on 23 September 2022. It is important to highlight FIFA’s decision to create a separate and independent entity based in the European Union. Having a newly created and regulated entity allowed the operational procedures to be tailored to the needs and risks of the football sector, instead of relying on an existing payment institution focused on other industry types. A variety of factors led to FCH being based in France. These include the fact that the vast majority of payments for the transfer of players are made between European clubs.11 Moreover, the European Union has one of the world’s most transparent and robust financial regulatory systems, which is recognised internationally, and France itself was already home to a FIFA office – the Member Associations Division hub in Paris, opened as part of FIFA’s commitment to making football truly global. In terms of the organisational structure, FCH is composed of a Management Board and a Supervisory Board. The Management Board is responsible for managing the day-to-day operations and consists of the independent Chief Executive Officer (CEO) and Deputy CEO. The Supervisory Board, comprising five members (two appointed by FIFA and three independent, including the Chairperson), is responsible for overseeing the Management Board. The remainder of the structure is divided into three lines of defence, as is common at financial institutions, with various degrees of monitoring and oversight. The services described in sections 6.3 and 6.4 are provided free of charge to clubs and member associations. As a payment institution licensed in France and supervised by the ACPR, FCH is bound by French provisions on confidentiality and professional secrecy.12

oversight. The services described in sections 6.3 and 6.4 are provided free of charge to clubs and member associations. As a payment institution licensed in France and supervised by the ACPR, FCH is bound by French provisions on confidentiality and professional secrecy.12 10 “Société par actions simplifiée (SAS)” in French. This legal structure is provided for under articles L227-1 to L227-20 of the French Commercial Code. 11 This was particularly the case pre-Brexit. 12 Article L522-19 of the French Monetary and Financial Code states that “any person who, in any capacity whatsoever, participates in the management of a payment institution or who is employed by a payment institution is bound by professional secrecy”. Accordingly, information relating to FCH customers is collected in the context of compliance with regulatory obligations and is not disclosed to third parties in any way whatsoever – under penalty of incurring the sanctions provided for in article 226-13 of the French Penal Code. Consequently, the information and documents collected in the context of FCH activities are treated as confidential, including vis-à-vis FIFA.20 06. From electronic player passport to payment06. From electronic player passport to payment 21 The FIFA Clearing House process consists of four subprocesses: the integration of domestic systems, the electronic player passport (EPP) review, the compliance assessment and payment execution via the FIFA Clearing House entity (FCH). This process, which is explained in more detail in the following subsections, was incorporated into FIFA’s regulatory framework with the approval by the FIFA Council of the FIFA Clearing House Regulations on 22 October 2022. 6.1 Integration of domestic systems and provision of registration information The effectiveness and efficiency of the new training-reward system rely on the implementation of integrated electronic systems by all member associations, enabling information t