Cape Town Spurs pursue unpaid development fees from five PSL clubs

Cape Town Spurs are taking legal steps against four Premier Soccer League clubs over unpaid training compensation, after only one of the five clubs involved settled its obligations.

The Ikamva-based club was relegated from the NSL but remains determined to protect an important source of income linked to the development of young players.

Spurs says the outstanding claims relate to at least nine players who have gone on to sign professional contracts. The club’s legal representatives are now pursuing the four clubs that have not paid the compensation due.

Training compensation is provided for under both FIFA and SAFA regulations. Article 20 of FIFA’s Regulations on the Status and Transfer of Players, together with Annexe 4, requires payment to a player’s training club or clubs when that player first registers as a professional.

The compensation can also be payable when the player makes subsequent transfers, up to the end of the calendar year in which they turn 23.

The system is intended to reward clubs that invest in the development of players who later reach the professional game. FIFA’s Articles 21 and Annexe 5 also make provision for solidarity contributions, which provide training clubs with a percentage of future transfer fees involving a player.

In South Africa, development fees for domestic transfers are governed by the SAFA Players Transfer Regulations. A club that has contributed to a player’s education and development can claim compensation when that player signs a first professional contract.

For domestic transfers, the new club is required to pay the training compensation within 30 days of registering the player. Under SAFA rules, failure to make that payment amounts to misconduct.

The value of a claim is determined by factors including the player’s age when they joined the club which must have been before the age of 23 and the number of seasons they spent there. If the parties disagree over the amount, or if payment is refused, the SAFA Dispute Resolution Chamber can decide what is owed.

Spurs representative Efstathiou criticised established clubs that, in his view, understand their responsibilities but deliberately avoid meeting them.

“It is particularly disappointing that some prominent clubs attempt to avoid their responsibilities, knowing they are liable. Unless pro clubs take training clubs seriously and acknowledge their developmental contributions, Mzansi football risks significant deterioration.”

He added: “Grassroots and academy structures that nurture talent for the PSL cannot survive if they are repeatedly denied the compensation they are legally entitled to.”

“These academies invest substantial resources, expertise, and time into developing young players, often with limited funding, only to see professional clubs profit from their work while neglecting their obligations,” he noted.

Efstathiou also urged SAFA, football’s governing body in the country, to improve enforcement of the regulations. He said Cape Town Spurs would use every available avenue if the claims were not resolved.

“The regulations are in place; what is lacking is proper implementation and administrative efficiency.”

Systems including MySAFA and the FIFA Clearing House were introduced to automate payments and formally recognise training rewards. However, Efstathiou said clubs continued to face administrative barriers while non-compliant teams were able to avoid sanctions.

“The introduction of systems such as MySAFA and the FIFA Clearing House was intended to automate payments and recognition of training rewards.”

“Nevertheless, clubs face bureaucratic obstacles, and non-compliant clubs exploit the system unimpeded.”

He warned: “If these issues persist, we will escalate unresolved claims through all available legal channels to secure the compensation rightfully owed to our academies.”

“We will not allow administrative failures to threaten our club’s financial stability or undermine the value of the talent we develop,” Efstathiou concluded.