APPENDIX 4 - REGULATIONS OF THE PROFESSIONAL FOOTBALL COMPENSATION COMMITTEE
1. In these Regulations:
1.1 ‘Club' means a football club in membership of the Premier League or The League;
1.2 ‘Compensation Fee' means any sum of money (exclusive of Value Added Tax) payable by a Transferee Club to a Transferor Club upon the transfer of the registration of a Player;
1.3 'The League' means The Football League Limited
1.4 'PFNCC' means the Professional Football Negotiating and Consultative Committee;
1.5 'Player' means a player who is the subject of an application to the Professional Football Compensation Committee ('the Committee') pursuant to Regulation 2 of these Regulations;
1.6 'the Premier League' means The Football Association Premier League Limited;
1.7 'Secretary' means the person or body appointed by the PFNCC to administer these Regulations;
1.8 'Transferee Club' means a Club to which the registration of a Player has been transferred;
1.9 'Transferor Club' means a Club from which the registration of a Player has been transferred;
2. The Committee shall determine applications made pursuant to:
2.1 Premier League Rules T.39, V.27.2 and Youth Development Rules 328 and 342.2;
2.2 League Regulations 63.20, 63.21, 63.22 and 67.5;
2.3 League Rules Relating to Youth Development Rules 328 and 342.2; and
2.4 appeals from a decision of the Board of The League made pursuant to League Regulation 66.1.
3. In making a determination as aforesaid, the Committee shall take into account the costs set out in Regulation 4 and any of the following criteria:
3.1 the status of each of the Transferor Club and the Transferee Club;
3.2 the age of the Player;
3.3 the Training Model(s) (as that term is defined in Youth Development Rule 1.77) on which the Player was engaged with the Transferor Club;
3.4 the amount of any fee paid by the Transferor Club upon acquiring the registration of the Player;
3.5 the length of time during which the Transferor Club held the registration of the Player;
3.6 the terms of the new contract offered to him by both the Transferor Club and the Transferee Club;
3.7 his playing record including any international appearances;
3.8 substantiated interest shown by other clubs in acquiring the registration of the Player.
4. The costs to be taken into account under Regulation 3 shall be:
4.1 any cost incurred by either Club in operating an Academy including (without limitation) the cost of providing for players attending thereat:
4.1.1 living accommodation;
4.1.2 training and playing facilities;
4.1.3 scouting, coaching, administrative and other staff;
4.1.4 education and welfare requirements;
4.1.5 playing and training strip and other clothing;
4.1.6 medical and first aid facilities;
4.1.7 friendly and competitive matches and overseas tours;
4.2 any other cost incurred by either Club directly or indirectly attributable to the training and development of players including any fee referred to in Regulation 3.4.
Composition of the Committee
5. The Committee shall be composed of:
5.1 an independent chairman with an appropriate legal background who, subject to the prior written approval of the Premier League, The League and The Professional Footballers' Association, shall be appointed by the PFNCC in such terms as it thinks fit;
5.2 an appointee of each of the leagues of which the Transferor Club and the Transferee Club are members or, if the Transferor Club and the Transferee Club are both members of the same league, an appointee of that league;
5.3 an appointee of The Professional Footballers' Association;
5.4 an appointee of The League Managers’ Association.
6. If the chairman of the Committee is unable to act or to continue acting as such in the determination of any application, the PFNCC shall appoint in his stead a person with an appropriate legal background.
7. If following his appointment any other member of the Committee is unable to act or to continue acting, his appointor may appoint a replacement so that the composition of the Committee is maintained as provided in Regulation 5.
8. If the members of the Committee fail to agree, they shall decide by a majority provided that, if the Committee is composed of an even number of members, the chairman shall have a second or casting vote.
9. The parties to proceedings before the Committee shall be the Transferor Club and the Transferee Club.
10. Proceedings shall be commenced by either party making a written application to the Secretary:
10.1 identifying the respondent Club and the Player;
10.2 setting out the facts surrounding the application including the criteria referred to in Regulation 3;
10.3 identifying any documents relied upon, copies of which shall be annexed; and
10.4 in the case of an application made by a Transferor Club, giving full particulars of the costs set out in Regulation 4.
11. Each Club which is a party in proceedings shall pay an administration fee to the Secretary the amount of which will be determined by the PFNCC from time to time.
12. Upon receipt of an application the Secretary shall:
12.1 procure that for the purpose of determining the application the Committee is composed in accordance with Regulation 5;
12.2 send a copy of the application and any documents annexed to it to the chairman;
12.3 send a copy of the same by recorded delivery post to the respondent.
13. Within 14 days of receipt of the copy application the respondent shall send to the Secretary by recorded delivery post a written response to the application, annexing thereto copies of any documents relied upon, and, in the case of a response by a Transferor Club, giving full particulars of the costs set out in Regulation 4.
14. Upon receipt of the response the Secretary shall send a copy thereof together with a copy of any document annexed to:
14.1 the chairman; and
14.2 the party making the application.
15. The chairman of the Committee shall give directions as he thinks fit for the future conduct of the proceedings addressed in writing to the parties with which the parties shall comply without delay.
16. The Committee by its chairman shall have power to summon any person to attend the hearing of the proceedings to give evidence and to produce documents and any person who is bound by these Regulations and who, having been summoned, fails to attend or to give evidence or to produce documents shall be in breach of these Regulations.
17. Upon the Chairman’s directions having been complied with or time for compliance having passed the Secretary shall make all necessary arrangements for the hearing of the proceedings (including supplying a full copy of all documents necessary for the hearing to each member of the Committee) and shall give written notice of the date, time and place thereof to the parties.
18. If a party to the proceedings fails to attend the hearing the Committee may either adjourn it or proceed in their absence.
19. The chairman of the Committee shall have an overriding discretion as to the manner in which the hearing of the proceedings shall be conducted.
20. The Committee shall not be bound by any enactment or rule of law relating to the admissibility of evidence in proceedings before a court of law.
21. The hearing shall be conducted in private.
22. Each party shall be entitled to be represented at the hearing by a solicitor or counsel provided that they shall have given to the other party and to the chairman of the Committee 14 days’ prior written notice to that effect.
23. The Committee’s decision shall be announced as soon as practicable and if possible at the end of the hearing and shall be confirmed in writing by the Secretary to the parties.
24. The Committee shall give reasons for its decision.
25. The decision of the Committee shall be final and binding.
Fees and Expenses
26. The chairman and members of the Committee shall be entitled to receive fees and expenses in such sum or sums as shall be determined by the PFNCC from time to time.
27. Upon determining an application made in accordance with the provisions of these Regulations, the Committee may make such order as it may think fit with regards to the amount and manner of payment of a Compensation Fee together with such other(s) as it may think fit.
28. No amendment to these Regulations shall be proposed or made without the prior written approval of the Premier League, The League and the Professional Footballers' Association.