FIFA has mandated that as of October 2010, all international transfers must be transacted through the online FIFA Transfer Matching System (TMS) to improve transparency, eliminate time zone and language complications, and reduce money laundering, trafficking in minors, and third-party player ownership. TMS was introduced in February 2008 in 18 countries and used in MLS for the past year – including for David Beckham's transfer back to MLS from Milan - and now required from all FIFA members and 3,633 clubs. TMS replaces the paper and phone based system.
"The most important thing is that it increases the transparency of individual transactions and helps us to tackle issues such as the fight against money laundering and the protection of minors in transfers," said FIFA President Joseph S. Blatter.
According to the Paul Kelso at the Telegraph, international player transfers result in 20,000-30,000 deals worth in excess of $1 billion every year.
“What happens a lot of times is that agents are presenting players and trying to put deals together and the players aren’t out of contract, they’re not of age, their seasons aren’t over, he’s not the real agent,” said MLS Vice-President Player Relations and Competition Lino DiCuollo. [Read my interview with DiCuollo about FIFA's new transfer system and MLS.]
The TMS also manages youth transfer fees by tracking player histories to ensure that structured compensation can be calculated for clubs that have trained young players and sold them on to other clubs.
FIFA uses the new system to prohibit international transfers of under-age players. Those transfers must first be approved by a sub-committee of the FIFA Players' Status Committee (along with any applications for a minor player to be registered for the first time in a country where he is not a national), and TMS handles both the initial request and the subsequent decision-making process.
Both clubs and both federations involved in a transfer must enter the same information in TMS, otherwise the transfer will be blocked and the member association cannot issue the International Transfer Certificate (ITC). Overall, more than 30 details on each transfer have to be entered, including information on the player, club, payments, timing, banks, and solidarity payments to previous clubs. These details must be backed up by uploaded copies of the player's identification documents, his new employment contract and the transfer contract between his former and future club.
Required TMS information:
- Counter club name
- Counter association name
- Player details
- Type of transfer (i.e., permanent, loan, exchange)
- Club agent(s) details and commissions
- Player agent details
- Total transfer compensation amount plus details of any solidarity or training compensation
- Payment method i.e., single payment of installments
- Schedule of transfer compensation payments including date, amount, and recipient
- Details of actual payments made including information about the source bank, destination bank, amount paid, date of payment and recipient
A combination of the following documents must be uploaded:
- Proof of the player’s nationality and date of birth
- A copy of the player’s new employment contract
- A copy of the transfer contract
- Proof of payment
Click here for my interview with Lino DiCuollo, MLS Vice-President Player Relations and Competition, about how TMS affects MLS.
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