New Delhi: Across the globe the football clubs have received $125 million from the money that is owed to them from transfers of ex-players, as confirmed by FIFA. The governing body confirmed that the money had been routed through their finance house in Paris and there’s still a deficit of almost $200 million. They further have claimed that $31 million was agreed upon but is yet to be received.
The payments are being allocated by the FIFA Clearing House to more than 5,000 professional and grassroots clubs. FIFA have published an update on the clearing house’s work over the last two years after starting operation in November of 2022. The main intention of the division was to bring more transparency in the often dubious multi-billion dollar transfer deals.
They also ensure that the smaller clubs get their dues from future sales of players they had supported. The biggest example of this was Moises Caicedo’s transfer move from Brighton to Chelsea last year, his club in Ecuador Independiente del Valle was entitled to receive a part of the $145 million deal.
BREAKING: Moisés Caicedo to Chelsea, here we go! Agreement reached and sealed right now — it’s gonna British record transfer fee 🚨🔵🇪🇨 #CFC
£115m fee plus sell-on clause included for Brighton.
Medical tests, booked.
Caicedo will sign until June 2031 with option until 2032. pic.twitter.com/7O8whsRLdK
— Fabrizio Romano (@FabrizioRomano) August 13, 2023
How small clubs are benefitting from the capital distribution
CD Espoli’s president, Lenin Bolanos has said that the amount will used for paying for a practice ground, gym and medical clinic. There are parts of some rules regarding FIFA’s transfer market in action since 2001 that are also in review after a ruling from the European court in a case filed by former France midfielder Lassana Diarra.
The old rule states that former clubs of players who trained them between the ages of 12 and 21 are entitled to share up to 5% of a future transfer fee. Most clubs are either unaware of a transfer taking place or lacked the expertise or the facility to pursue such a claim. However, now the online process is managed by the FIFA finance house that alerts the buying clubs of approved payments that needs to be made within a 30 day period.
England and Saudi Arabia have proved to be the wealthiest buying markets and have paid the most. England clubs have paid $50 million and Saudi clubs were estimated to have paid $19 million over the past two years for what the FIFA called “training rewards”. The leading recipient clubs were based in Netherlands who received $8.7 million, France getting $7.8 million and Argentina receiving $7.1 million.
FIFA noted that the main reason for the backlog was the clubs not being compliant to the system and noted 16,00 clubs across 100 countries were accredited. FIFA chief legal officer Emilio Garcia noted that this was just the beginning there’s a lot of space for improvement.
Football clubs across the world are receiving arrears from transfers of former players. Football Sports News: Latest Cricket News, Cricket Live Score, Sports Breaking News from Sports Today
