The Solidarity Mechanism from the Perspective of the Brazilian Legal System

The solidarity mechanism consists of a legal tool aimed at redistributing amounts from permanent or temporary transfers of athletes in favor of the clubs that contributed to their training, provided it is onerous. Its primary objective is to ensure that training clubs are compensated for the efforts, investments and incentives applied during the athlete's development and professionalization.

At the national level, the solidarity mechanism is legally provided for in art. 102 of Law 14.597/23, the so-called General Sports Law, which provides for the distribution of amounts to clubs responsible for training professional soccer players between the ages of 12 and 19. The amount to be distributed can reach up to 6% of the value corresponding to the player's national transfer, covering both permanent and temporary transfers between Brazilian clubs.

The General Sports Law (LGE) introduced significant innovations into the Brazilian system, such as increasing the percentage from 5% to up to 6% for domestic transfers, promoting greater recognition of training clubs on the domestic scene. The LGE also brought greater clarity to the obligations of the parties involved, allowing the percentage for domestic transfers to be combined with the international percentage established by FIFA for transfers between clubs of different nationalities. This change reinforces the protection and support of clubs that invest in their youth teams.

In addition, the new legislation presents a more detailed approach to the rights of training clubs in domestic transfers, an aspect that previously did not receive due priority. The accumulation of percentages and the equitable distribution of values strengthen the role of youth teams in Brazil.

According to article 102, items I, II and III of the LGE, the 6% due to the training clubs is distributed as follows:

I) Clubs that contributed to the training of the athlete between the ages of 12 and 13 are entitled to receive 0.5% per year of training;

II) Clubs that helped train the player between the ages of 14 and 17 are entitled to receive 1% per year of training; and

III) Clubs that trained the player between the ages of 18 and 19 are entitled to 0.5% per year of training.

It is important to note that there is no limitation on the number of transfers, the age or the length of the player's career for the solidarity mechanism to be triggered. Whenever an athlete is transferred for a fee, the mechanism is automatically activated, regardless of the number of previous transfers or how long the athlete has been in professional activity.

Another relevant point is that the LGE, in its article 102, paragraph 3, establishes that the sports organization acquiring the athlete's rights is responsible for distributing the amounts related to the transfer to the training clubs, within 30 days of the actual transfer.

There is an exception when the athlete unilaterally terminates his contract by paying an indemnity clause to the club to which he was linked. In this case, the organization that received the indemnity clause must distribute the amounts in accordance with article 102, paragraph 2 of the LGE.

If the club acquiring the athlete does not distribute and pass on the amounts owed to the training clubs within 30 days, the training clubs can appeal to the CBF's National Dispute Resolution Chamber (CNRD). Article 3(IV) of the CNRD's regulations gives the chamber jurisdiction to judge disputes related to non-compliance with the solidarity mechanism.

It is important to note that there are situations in which the solidarity mechanism is not activated, such as:

I) Free transfers, in which no money is paid for signing the athlete;

II) Transfers at the end of the contract, when there is no financial compensation;

III) Signing of the first professional contract by a player in training with a club other than the training club, in which case the training indemnity applies;

IV) Club not formally registered, since it is essential that the athlete is regularly registered with the federation during the training period in order for the club to be entitled to compensation; and

V) Transfers of players who do not become professionals, since the mechanism only applies to players who have completed professionalization and are regularly registered as professionals with the federation responsible.

Thus, two elements are essential for the activation of the solidarity mechanism: the professionalization of the athlete throughout his career and the existence of an onerous transfer, i.e. in which the acquiring club makes the payment for the acquisition of the athlete.

It can be concluded that the solidarity mechanism, initially provided for by the Pelé Law and improved by the General Sports Law, reinforces the crucial role of training clubs in the development of professional athletes. By guaranteeing the redistribution of part of the transfer fees, Brazilian legislation encourages continued investment in the youth ranks. The innovations introduced by the LGE, such as the increase in the percentage and the greater clarity in payment responsibilities, strengthen this system. However, it is essential that clubs strictly follow the deadlines and procedures established to ensure that they receive this compensation properly.