Toronto FC compensates 15 youth clubs that contributed players to their academy

[shermanator]

This was mentioned in the 2017 TFC season thread, but I figured it warrants it's own discussion. Not sure if this is an ongoing thing they will do, but I like the idea.

On May 25, TFC, in conjunction with Ontario Soccer, held what it called a 

scholarship night at its training facility. The event honored 15 area youth clubs that had seen a combined 27 players move to TFC's academy program. During the event, those clubs received an unexpected gift: For every player sent TFC's way, the club received $2,500 (CAN). One club walked away that night with $12,500 in its pocket, with TFC's total outlay on the evening reaching $67,500.

"We didn't know anything about [receiving money] in advance," said one attendee, who asked not to be identified. "This happened out of the blue."

When contacted by ESPN FC, Toronto FC president Bill Manning didn't dispute what took place. In his eyes, the event -- and the money -- is a way to forge deeper connections with local youth clubs that might otherwise resent TFC for "poaching" their players. It also rewards those clubs for their success in player development. He plans to hold a similar event next year.

"Rather be viewed as an enemy of youth soccer, we want the clubs to view us as the next step in the pathway," Manning said via telephone.

 

[shorty]

On the surface I think this is great, but part of me has nagging doubts.  I hate to be so cynical, but I wonder if part of this is to ward off future lawsuits against the MLS in Canada for solidarity payments.  

It would be hard for Erin Mills, as a hypothetical example, to sue for their cut of an overseas transfer of Raheem Edwards, or Edmonton Strikers/Internationals for Alphonso Davies, etc, if either of those youth clubs were to have already accepted cash from TFC or VWFC.  (Obviously, this is a TFC story and from the program, it doesn't look like EM is one of the youth clubs we are talking about -- hypothetical examples only).

Crossfire failed in US court to get money from Yedlin's transfer to England, but I don't know if solidarity payments have been tested in Canadian courts.  Maybe someone who knows either law or the history of solidarity payments better than I can comment.

The fact that the clubs had no warning that the cash was coming makes me suspicious.  If they were told ahead of time the clubs could have weighed whether to accept or not.  As it is, they would likely accept out of surprise, flattery, not wanting to seem ungracious, etc.

[harrycoyster]

2 hours ago, shorty said:

I don't know if solidarity payments have been tested in Canadian courts.  Maybe someone who knows either law or the history of solidarity payments better than I can comment.

The fact that the clubs had no warning that the cash was coming makes me suspicious.  If they were told ahead of time the clubs could have weighed whether to accept or not.  As it is, they would likely accept out of surprise, flattery, not wanting to seem ungracious, etc.

Solidarity payments haven't been directly tested in Canada, it's hard to say that there would be much of a difference from the US ruling. A definitive ruling regarding youth club payments in North America would probably need to go through the CAS or FIFA, not domestic law.

I think that this is likely just a tactic to stay on good terms with the youth clubs in the GTA. MLS clubs' relationships with the youth pyramid is very important when it comes time to recruit a kid, especially in the more competitive markets like LA, Toronto, and Texas. We've recently seen LAFC give free training equipment to local youth clubs to try to gain a recruiting edge on the Galaxy, NYCFC basically buy 20 youth clubs in the NYC area, and Real Salt Lake has a program that rewards youth clubs that "play nice" with them. I wouldn't read to far into this. 

[red card]

No need to test in Canadian courts so far. Mississauga club got paid when Henry went to West Ham.

And it was way more than the tiny sums TFC handed out. But this seems like a glorified awards show for having been accepted by TFC. Hopefully, they didn't sign anything and gave up potential bigger payday if player heads to Europe.

The ESPN article also states the CSA does enforce RTSP on international transfers but has no guidelines for domestic deals.

[Offside]

As a parent I think this is wrong, parents spend thousands for kids to train and play  and the club gets paid twice, parents should get compensated too. My kids never trained or played for free, we have worked every hard to make money to be able to pay for our kids to play soccer here, Tfc is well aware that clubs are pay to play

[Bison44]

I thought the cash was to be for scholoarships, etc for deserving kids at the clubs??  

"Hey, let's recognize those clubs that had players that moved on to our academy teams this past year.' So we had 15 clubs and we wrote checks to them that we ask be put back into their club for scholarships."     Bill Manning quote from the espn article.  

[shorty]

Here's the ESPN article:

http://www.espnfc.com/club/toronto-fc/7318/blog/post/3181146/toronto-fc-breaks-new-ground-but-mls-still-has-player-development-issue

I'm in the same boat as one of the commenters at the bottom of the article -- I don't fully grasp the anti-trust argument.  Here's the relevant paragraph:

The CSA has its own antitrust concerns as well. It has been argued that training compensation and solidarity payments could result in a restraint of trade that could prevent a player from signing a contract. Section 48 of Canada's Competition Act reads in part, "to limit unreasonably the opportunity for any other person to negotiate with and, if agreement is reached, to play for the team or club of his choice in a professional league ... is guilty of an indictable offence."

Can someone give a rational explanation for why paying training compensation would "restrain trade" and limit the opportunities for players like an Edwards or a Davies to sign domestic deals?  I get that it raises the sticker price on players for the clubs, but TFC, VWFC and IMFC all need players one way or another, and anywhere else in the world they go shopping for players that cost is already built in, no?  Can youth clubs set their own prices for their players elsewhere?  If that were true I would understand that players would need protecting from youth clubs that might block a move with an unreasonably high request, but I thought that FIFA set out set percentages for compensation.

I'm usually quite good with policy/legislation/contractual/strategic nuances but for some reason, I'm blanking on this one.

[An Observer]

That is the issue. It drives up the sticker price and therefore someone might not get sold as the buying club only wants to pay 90 and the selling club wants 100 and the difference of 10 is what would be owed to the youth club.  If that wasn't there the selling club would be happy with 90 which is what it was getting all along. 

[BCM]

On 18/08/2017 at 3:51 AM, Offside said:

As a parent I think this is wrong, parents spend thousands for kids to train and play  and the club gets paid twice, parents should get compensated too. My kids never trained or played for free, we have worked every hard to make money to be able to pay for our kids to play soccer here, Tfc is well aware that clubs are pay to play

I don't see your point. The money is for scholarships, and even if it wasn't if the team used the money to say, travel, it would charge parents less for the trip. It's not like the coaches/administrators are pocketing the money here.

 

[Offside]

On 2017-08-19 at 5:36 AM, BCM1555362349 said:

I don't see your point. The money is for scholarships, and even if it wasn't if the team used the money to say, travel, it would charge parents less for the trip. It's not like the coaches/administrators are pocketing the money here.

 

Well clubs should find sponsors for scholarships, well some parents don't even pay for their  kids and still want more , not fair to the ones that have to work hard In order to pay thousands  for their kid to pay 

[Kent]

I think the only way parents stop having to pay thousands of dollars for training at a top (amateur) club is for pro clubs like TFC to pay for players they get from those clubs. Just like you want your kids to have things better than you did when you were a kid, if you are a soccer fan you should want things to keep improving at the club level. Giving these clubs motivation to hire/train up good coaches, and teach to try to get their players to the next level rather than to get their next trophy are good things.

I don't usually visit the MLS forum on here, so this is the first I am seeing of this. Sounds very positive! I do understand Shorty's skepticism though. It'll be interesting to hear if there are any strings attached to this money, but I sure hope not.

[L.MODRIC]

Kuddos to TFC on this doing this showing there appreciation...for of you that are actual soccer people would know that majority of clubs in the world when selling there players they come to a agreement with the club in question of taking over a playing that a % of the next transfer be given to the original club where the player came from