Training Compensation: The Unavailable Revenue Source for Women’s Football

Developing Talent has a Social and Financial Upside

A major topic in football is the player pathway to professional. Men’s clubs are investing in developing homegrown talent through an academy model and also affiliated youth clubs. There is a social component to developing homegrown talent and providing athletes access to training and resources. Providing players the opportunity to play has an impact on the community and the player. At the same time, there is a financial motive for these men’s clubs to developing talent. On such financial motive is Training Compensation.

Training Compensation Brief Overview

Training Compensation is a type of “Training Reward” (a mechanism by which football clubs generate revenue for training players). Briefly, Training Compensation is money that is paid to a club that has trained and educated a player prior to that player turning pro (and also between the ages of 12 and 23). This money is paid when a player transfers to a different member association of FIFA. Training Compensation can be a stream of revenue for an organization to continue to providing the training for the youth and amateur players.

Training Compensation Does Not Apply to Women’s Football

As of the date of this blog, Training Compensation does not apply to women’s football. On December 17, 2023, FIFA approved a governing framework for training compensation in women’s football. On May 30, 2024, FIFA issued a circular indicating that it needed data before implementing a training compensation scheme for women’s football. This circular provided a link to a survey for clubs to complete. To date, there have been no updates from FIFA on whether training compensation (at least under FIFA’s framework) will ever apply to women’s football.

Prudent Women’s Clubs Will Prepare for Training Compensation

With that being said, it behooves women’s clubs to understand Training Compensation and implement strategies to develop the talent. Again, developing a system for identifying and fostering talent not only has an invaluable societal impact, but also can generate revenue for the clubs. Training Compensation can allow these clubs to continue to provide the amateur player training and education. Prudent professional clubs will invest in these club relationships and even internal developmental structures (academies).

Training Compensation Can Democratize the Player Pathway and Shift Away from “Pay-To-Play” Model

This investment will have the social impact for the youth players, and it will also put the club in a strong position to receive Training Compensation (should it ever become available to the women’s game). Even more, Training Compensation could democratize the women’s professional pathway. Currently in the US, the elite youth clubs and academies rely heavily on the player’s family to pay (aka- “Pay-to-Play”). The added revenue stream from Training Compensation would ease this burden on the player and the club. These clubs would not have to rely solely on families to pay for the child to play for a club. The added revenue could allow clubs to expand their search for talent beyond certain socioeconomic and geographic barriers.

Stay Tuned for More

This is the introductory blog for a series of blogs that discusses the intricacies of Training Compensation. Women’s Clubs should prepare and Associations should advocate for this mechanism to be available for the women’s game. Stay tuned for more.