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FIFA Proposes Algorithm To Calculate Transfer Fees, Luxury Tax

FIFA President Gianni Infantino considers transfer system reform a priority.GETTY IMAGES

A FIFA task force "proposed the use of an algorithm to calculate transfer fees as well as a luxury tax" and a limit on the number of players who can be loaned in a report on "possible reforms" to the transfer system, according to Brian Homewood of REUTERS. The report "found multiple failings in the current system, saying among its many criticisms" that it led to "various abuses at the expense of young players and the integrity of competitions." It said that an "inflated transfer market" was driving "unsavoury practices which may lead to the exploitation of players." In a section on the role of agents, the report added, "The transfer system appears to have turned into a speculative market. This is not fair to the football clubs or grassroots which are the foundation of the professional sport." FIFA President Gianni Infantino said after being elected in '16 that "transfer system reform was one of his priorities and he has since voiced his concern at spiralling transfer fees." The task force, set up by Infantino in November, said that the Swiss-based CIES Football Observatory has already developed an algorithm to "estimate transfer values and probabilities in a scientific way." Another idea it put forward was to "impose a luxury tax on excessive transfer spending and use the money raised to create a solidarity fund" (REUTERS, 9/14).

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