When clubs cannot agree the amount, a Professional Football Compensation Committee fixes the compensation fee. It is led by an independent chair or vice chair and includes league appointees, a PFA appointee, and at least one specialist member.
What the key terms mean
A compensation fee is any sum of money or other consideration, excluding value added tax, payable by the club taking the player to the club releasing him on the permanent transfer of his registration. At a minimum the committee determines the amount of a compensation fee, a contingent sum, or both, payable by the club taking the player to the club releasing him.
A contingent sum is an extra payment, also excluding value added tax, that becomes payable on top of the compensation fee if a contingent event happens because of that transfer. An out of contract player is a player whose contract of employment with a club has expired or has been cancelled.
Who sits on the committee
Here is the committee membership.
| Member | How they get there |
|---|---|
| The chair or vice chair | An independent individual appointed by the negotiating committee, with the prior written approval of the Premier League, the EFL and the players' association |
| A league appointee | One from each of the leagues the two clubs belong to, or one from that league if both belong to the same |
| A players' association appointee | Appointed by the Professional Footballers' Association |
| At least one further member | Appointed by the chair from an agreed pool, with academy recruitment experience, specialist valuation and data experience, or both |
The independent chair is appointed by the professional football negotiating and consultative committee, but that appointment needs prior written approval from the Premier League, the EFL and the PFA. The extra member brings academy player identification and recruitment experience, specialist valuation and data experience, or both.
Anyone appointed to the committee should undertake tailored training. The training is organised by the secretary and covers the committee's processes and procedures.
How a case starts
Proceedings begin when either party sends a written application to the secretary and copies it to the respondent club. The application must identify the parties and the player, and it must set out the facts relied on by reference to the criteria in the regulations.
The parties are the transferor club and the transferee club. Both pay an administration fee to the secretary in an amount determined from time to time by the negotiating committee and communicated to clubs; if no amount has been agreed, no fee is payable.
Within seven days of receiving the application, the secretary takes the procedural steps required by the regulations. Unless the parties agree otherwise, the responding club has 14 days from receipt of the application to file its response.
How the hearing works and how evidence is handled
Both parties may be represented at the hearing by a solicitor or counsel, as long as that appointment has been notified to the other party and to the chair or vice chair. The hearing itself is confidential and conducted in private.
The committee is not bound by judicial rules, or by enactments or rules of law on the admissibility, relevance or weight of evidence. Facts may be established by any means the committee considers reliable.
The committee may also question the player at the hearing. If the parties have legal representatives, that questioning takes place in their presence, and it is subject to any objection from the parties.
FAQ
What is the Professional Football Compensation Committee?
It is the body that fixes the amount of a compensation fee when the clubs cannot agree it. Its job is to determine the amount in a dispute between the club releasing the player and the club taking him.
Who actually sets the amount if the clubs disagree?
The amount is fixed by the committee, which is chaired by an independent individual. Its make-up combines an independent chair or vice chair, league appointees, a PFA appointee and at least one specialist member.
Can the player be questioned at the hearing?
Yes. The committee may ask the player questions, and if there are legal representatives for the parties, the questioning happens in their presence, subject to any objection from the parties.
What does a football compensation hearing involve?
The process starts with a written application to the secretary, copied to the respondent club, followed by a response from that club within the set timetable unless both sides agree otherwise. At the hearing, clubs may use legal representation and the committee can evaluate facts through any method it considers reliable.