Women's football: compensation for academies

Why is training compensation necessary?

The disparity in regulations between women's football and the men's game has long been apparent. Currently, within the Women's Super League (WSL) and Women's Championship, female players under the age of 18 cannot enter into professional contracts. This leaves them vulnerable to being "poached" by other clubs, with their current club receiving no compensation in case the player decides to depart before signing a professional contract.

One such example of a female player being poached before signing a professional contract is that of Lauren Hemp. In 2018 Manchester City FC signed Hemp to her first professional contract, she had previously been playing for Bristol City FC, for whom she had made 24 appearances, scoring 9 goals, and received the accolade of PFA Women’s Young Player of the Year. Bristol City FC received no transfer fee for Hemp because she was under the age of 18, and so had not signed a professional contract with them. Since her move to Manchester City FC, Hemp has gone on to play for the England Women’s National Football Team, assisting the goal that clinched the UEFA Women’s Euro 2022 Final against Germany.

Despite nurturing and training Hemp, Bristol City FC received no compensation, highlighting the inequitable nature of the situation in women’s football. The lack of a compensation regime discouraged clubs from making substantial investments in nurturing and developing young talents, who might potentially command significant transfer fees in the future.

Training compensation in men’s football

In men's football, compensation for clubs losing their academy and youth players hinges on whether the transfer is domestic or international in nature (this discussion pertains only to the domestic aspect).

Youth football at a domestic level is overseen by the Premier League and Football League Youth Development Rules. These rules were established following the implementation of the Elite Player Performance Plan (EPPP) by The FA in 2012. The EPPP serves as a framework for youth development in English football and governs how clubs can recruit and train young players.

The EPPP introduced a fixed compensation system for player transfers, ensuring that clubs must provide compensation when acquiring a young player from another club's academy. In essence, the compensation amount is determined by two key factors:

• The duration of the player's tenure in their former club's academy, and
• The category of the academy where the player received training (higher-ranked academies receive more substantial compensation).

This framework guarantees that clubs are compensated for their investments in developing young talent, even if those players eventually move to another club.

In cases where the player was offered a Scholarship Agreement or was in their U17 year or older at the time of the transfer, the fixed compensation system is superseded. In such instances, the compensation amount is determined through mutual agreement between the two clubs or, if no agreement is reached, by the Professional Football Compensation Committee.

Through this framework, men’s football teams are less susceptible to having their academy talent pried away by more financially powerful clubs. Although elite talent is still undeniably hoarded in the academies of clubs at the top of the English football pyramid, those clubs who initially nurtured and developed these young talented players, are at least compensated for the time and money they invested in them.

Training compensation in women’s football

The new compensation system in women's football closely mirrors the fixed compensation regime seen in the men's game. Clubs are entitled to a 'recognition fee' for each year a player has been part of their academy when they decide to switch clubs.

Unlike the men's game, this framework doesn't categorize clubs. Instead, it is contingent on which league each club is participating in at the time of the player's transfer:

• If a WSL academy player joins another WSL club, then the club who developed the player are entitled to a fee of £5,000 per year in the academy
   
• If a WSL academy player joins a Women's Championship club, then the club who developed the player are entitled to a fee of £1,000 per year in the academy.
   
• If a Championship academy player joins a WSL club, then the club who developed the player are entitled to a fee of £2,500 per year in the academy.
   
• If a Championship academy player joins another Championship club, then the club who developed the player are entitled to a fee of £500 per year in the academy.

These rules apply only when both the club a player is leaving and the club they are joining are in either of these two leagues. Currently, no compensation is payable under this system if either club is amateur or foreign, though alternative mechanisms, such as FIFA's Regulations on the Status and Transfer of Players, might apply.

Additionally, both the former club and the new club must hold a Professional Game Academy (PGA) license with The FA, which excludes some larger clubs like, Crystal Palace FC, Watford FC, and West Ham United FC.

This system applies to players aged 21 or under, provided they are not under a professional contract. Standard transfer rules apply to players under a professional contract.

The recognition fee also applies when a player is offered a first professional contract by the club they are joining, having previously been under PGA registration at a different club. The regime's start date is determined by The FA's announcement, and fees will not be retroactively applied, so although Bristol City FC will never see a penny from Manchester City FC for Lauren Hemp, the club that produces the Lionesses’ next star may well do if they find themselves in a similar situation.

Potential future changes

The FA intends to continuously review and update this new framework. As women's football continues to grow, there may be calls for a more flexible system in the future. However, for the time being, this fixed compensation regime represents a significant stride toward equity in women's professional football.

It's worth noting that similar plans are reportedly being considered in other parts of Europe, with FIFA's Professional Women's Football Task Force examining current regulations.

Karen Carney MBE, a former England player, has recently published a report as part of her independent review into the future of women's football. In her report, she highlights instances where compensation could be as low as £500 (for transfers between Championship clubs) and encourages The FA to adopt a more comprehensive framework, akin to that of the men's game, to incentivize player development and ensure the continued success of the Lionesses.

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