FIFA announced on Wednesday that it has paid $125 million to football clubs worldwide, clearing outstanding transfer fees for former players through its finance house in Paris.
An additional $200 million remains in backlog, while $31.7 million has been agreed upon but not yet disbursed.
The payments, managed by the FIFA Clearing House, are being distributed to over 5,000 grassroots and professional clubs.
This update marks two years of the clearing house’s efforts, which began in November 2022, aimed at bringing more transparency to the often opaque multi-billion-dollar transfer market.
The initiative also ensures that smaller clubs receive the compensation they are owed from future player sales.
When Moises Caicedo made a British transfer record move from Brighton to Chelsea last year, his former clubs in Ecuador were entitled to share millions of dollars from the £115 million ($145 million) fee.
The money routed by FIFA “was a dream,” said Lenín Bolaños, president of CD Espoli, in the FIFA report, with plans to pay for a practice ground, medical clinic, and gym.
Some parts of the FIFA transfer market rules in place since 2001 are under review after a European court ruling last month in a case brought by former France midfielder Lassana Diarra.
The current FIFA system entitles former clubs that trained players between the ages of 12 and 21 to share up to 5% of a future transfer fee.
However, clubs often were unaware a transfer had gone through or did not have the expertise or resources to pursue a claim. Now the online process is managed by the FIFA finance house, which notifies buying clubs of approved payments that must be made within 30 days.
The wealthiest buying markets, England and Saudi Arabia, have paid the most in so-called “training rewards,” FIFA said – $50.1 million and $18.7 million, respectively, over the past two years.
The leading net recipients have been clubs in the Netherlands ($8.7 million), France ($7.8 million), and Argentina ($7.1 million).
One reason for the backlog is that clubs are not compliant with the system, the FIFA report said. It said at least 1,600 clubs in more than 100 countries are accredited.
“There are still important challenges ahead and areas for improvement,” said Emilio García, FIFA’s chief legal officer, in the 52-page report.