What is training compensation, and when does it apply?

Training compensation pays clubs that developed a young player when the player turns professional. It is paid club to club: under the NSL Handbook, no compensation is payable to anyone other than a club, so it is never paid to the player or the parents.

From a SAFA amateur club to a semi-pro or pro club (SAFA Competitions Uniform Rule 13.8): a semi-professional or professional club that signs a player from the SAFA official competitions must compensate the player's club for developing them, at a fee agreed by the clubs, guided by FIFA's development compensation principles.

Within the PSL (NSL Handbook rules 46-49):

• A player's training and development is treated as happening between ages 12 and 21.
• Compensation is paid when the player signs a first professional contract, and on each later transfer before their 23rd birthday while professional.
• Current rates: R50 000 a year for a Premier Division club (category 1) and R25 000 a year for a National First Division club (category 2). Years between ages 12 and 15 are paid at the category 2 rate whatever the club. The PSL Executive Committee can change the rates before each season's first registration period.
• The PSL's Dispute Resolution Chamber can award extra compensation to a club with a dedicated youth academy that trained the player, up to what the club actually spent.
• Transfers to or from a club in another country follow FIFA's rules.