FIFA’s proposed solidarity mechanism reforms – an effective solution or a lost opportunity?

On 25 September 2018, FIFA announced that football stakeholders had endorsed a long-desired “landmark reform of the transfer system.” 1  The reform package, which was formally endorsed by the FIFA Council a month later,2 includes a number of different proposals,3 chief among which are reforms to the solidarity payments mechanism.4 In the words of FIFA President, Gianni Infantino, a key objective is to “reinforce solidarity mechanisms for training clubs” and to achieve “the effective enforcement of rules that will deliver millions in solidarity payments to clubs”5. To try to accomplish this, the two specific reforms proposed are:

1. The creation of a “clearing house” to centralize payments associated with transfers; and

2. The application of the solidarity contribution to domestic transfers with an “international dimension”.6 

This article examines the two proposals in light of how the system currently operates. Specifically, it looks at:

• The current problems with solidarity payments;

• Whether a clearing house can be an effective solution;

• How exactly the “international dimension” will apply; and

• Proposals on how to improve the current system.

This article assumes a certain level of knowledge about both how the transfer system and solidarity payments currently work, and the new reforms that have been proposed. Readers not familiar with these topics are advised to first read this article on solidarity payments7 and this article on the new reforms8.