FIFA initiates procedure to establish, operate Clearing House

FIFA Player Transfers,FIFA Clearing House,FIFA Council,FIFA Clearing House system,Sports Business News

The world governing body for football, FIFA is working on the project of the FIFA Clearing House for automating distribution and payments of training rewards between clubs. FIFA Clearing House will be a separate entity under the full control of FIFA in charge of processing payments related to Training Rewards between clubs all around the world.

The FIFA Clearing House once functional will ensure that the smaller clubs get a fair share of fees when selling players developed by them.

Once fully operational, the FIFA Clearing House will handle almost 14,000 transactions worth $400 million per year involving more than 120 countries and 15 different currencies. These payments will be due from the new club to the training clubs of the players, in cases where a player is transferred or registered at an association as a professional, in accordance with the provisions laid down in the Regulations on the Status and Transfer of Players (RSTP), FIFA has stated on its website FIFA.com.

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FIFA will calculate the Training Reward payments and will communicate these to the FIFA Clearing House for their execution. The FIFA Clearing House will act as a central counterparty in these payments and will be in charge of performing all required checks. Specifically it will make sure that the money paid by the new club is correctly distributed to the training clubs based on an global electronic player passport system and in compliance to national and international financial regulations, including applicable Anti-Money Laundering laws and checks for sanctioned countries.

FIFA is also opening a tender process to invite bid proposals to support the establishment and operation of the FIFA Clearing House.

Companies wishing to participate in this process are requested to consider the RFP document available online on the FIFA website and submit a confirmation of intent by September 15 by email to FIFAClearingHouse@fifa.org.

FIFA Council on October 26 last year had decided to set up the FIFA Clearing House.

FIFA is optimistic that the adoption of the FIFA Clearing House system will effectively ensure the payment of the Solidarity Contribution and Training Compensation amounts to training clubs all around the world, with the potential to increase the amount of money distributed to training clubs by up to four times of what they currently receive.

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