Analysis of FIFA Transfer System Reforms and Their Implications

This report examines the FIFA transfer system reforms, highlighting the current system's reliance on FIFA TMS for international transfers and player registration. It analyzes the proposed loan reform system, which aims to limit the number of players a club can loan, and discusses the critical analysis of these reforms. The report focuses on the potential impacts on clubs like Chelsea and Manchester City, considering the implications of limiting loan players, the academy development, and the short-term issues related to player transfers. The analysis also covers the regulations on agents and the potential influence of Brexit on player recruitment. Overall, the report provides a detailed overview of the changes and their potential consequences for football clubs, players and the sport's ecosystem.

Running head: FIFA TRANSFER SYSTEM REFORMS
Fifa Transfer System Reforms
Name of the Student
Name of the University
Author Note

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Current Transfer System
FIFA TMS is a software platform, that once clubs conclude their contracts, this
software extracts the various sections of the contracts and present it on the platform. This
includes details on club name, association name, player details, type of transfer, club agent,
payment method, transfer fees among others. In the current transfer system, the FIFA TMS or
ITMS has been mandatory for all international transfers of professional players. A player
must be registered at an association to play for a club as either a professional or an amateur in
accordance with the provisions of article 2 (Resources.fifa.com. 2017). Only registered
players are eligible to participate in organised football. By the act of registering, a player
agrees to abide by the statutes and regulations of FIFA. A player may only be registered with
one club at a time.
Loan Reform System
A professional may be loaned to another club on the basis of a written agreement between
him and the clubs concerned. Any such loan is subject to the same rules as apply to the
transfer of players, including the provisions on training compensation and the solidarity
mechanism. Reports have suggested FIFA wish to limit the number of players a club can lend
each season to between six and eight, but no exact figure has been decided (Sunderland
2018). The move to regulate agents comes after a suggested spike in independent advisors,
which helped lead to a £37 million increase in agents fees paid out by Premier League clubs
this past summer compared to 2017.
Critical Analysis
The current system means players can go on loan for season after season. Michael
Hector had 11 loans from Reading, and is on his fourth since signing for Chelsea in 2015. But

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after the reforms, Chelsea can be heavily affected by the changes as they have 40 players out
on loan, including Kurt Zouma at Everton, Tammy Abraham at Aston Villa, and Trevoh
Chalobah at Ipswich. Kurt Zouma is on loan at Everton. Any significant reduction of the 'loan
limit' imposed by FIFA may well mean Chelsea will have to alter their loans (Sky
Sports. 2018). The reform will also prohibit bridge transfers and sub-loans.
Although the upcoming regulations can hurt Chelsea big time by increasing expenses
or cutting squad depth, there is still reason of hope especially owing to the club’s academy
which has been doing a fine job in developing young talent of immense potential. Callum
Hudson Odoi or CHO as he is lovingly called is leading example of this. This means if such
influx of players is to arrive, it would be opportune time for developing these talents and hot
prospects and pitch them against the academy to prove their mettle. Also, the seasoned
veterans will now have challengers and will have more reasons to perform at the highest
level. If the club even chooses to field the youth, all the better, for though the club might
initially suffer because of fielding an untested and inexperienced squad, such a move is
destined to pay dividends in the near future. Chelsea, instead of having their true second
squad play in Premier League 2, they should look at the richest clubs who have sent
youngsters on loan all over Europe (Szymanski 2016). Those left to play in the Under-23s
tend to be the Under-19 or 20s. With first team performances their can shoot up which is
good for both the player and the club. As a result, the club, Chelsea by giving playing time to
the young talents can have a clear picture on the progress and potential of each player and can
hence choose whom to keep, with whom to replace key stars and whom to sell.
Short Term Issues
The short-term issues may result to key young players being bought by other clubs if
they don’t get desired playing time as can be seen with Hudson Odoi. After the loan reforms

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come into effect, and the club sees a sudden influx in young players previously out on loan,
the demand for playing time over the club’s preferred starting XI or opting for a transfer will
arise and Chelsea can lose many of their key future stars. To make the most out of this
impending trouble the club must shift its policy of treating young players by letting them play
major games like Europa league (Sportskeeda.com. 2018). Problems also exist in other clubs
like Manchester City. Despite having the finances to lure any of the world’s best young
players to Manchester, City still have a core of local players in their Elite Development
Squad (Willacy 2018). When I saw them a few weeks ago in a Premier League 2 game, they
fielded nine products of English football. The majority of that squad is English-born –
including centre-back Colin Rosler, son of Uwe, who plays for Norway Under-21s –
complemented by seven continental Europeans and one Argentinian. Brexit may change that.

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References
Resources.fifa.com. (2017). Regulation on the Status and Transfer ofPlayers. [online]
Available at: https://resources.fifa.com/image/upload/regulations-on-the-status-and-transfer-
of-players-2018-2925437.pdf?cloudid=c83ynehmkp62h5vgwg9g [Accessed 25 Mar. 2019].
Sky Sports. (2018). FIFA transfer reform will regulate loan system. [online] Available at:
https://www.skysports.com/football/news/11095/11508440/fifa-transfer-reform-will-regulate-
loan-system [Accessed 25 Mar. 2019].
Sportskeeda.com. (2018). Why Chelsea continue to let their academy down. [online]
Available at: https://www.sportskeeda.com/football/why-chelsea-continue-to-let-their-
academy-down [Accessed 25 Mar. 2019].
Sunderland, T. (2018). FIFA Agrees to Limit Club Loans, Will Reintroduce Agent
Regulations. [online] Bleacher Report. Available at:
https://bleacherreport.com/articles/2797566-fifa-agrees-to-limit-club-loans-will-reintroduce-
agent-regulations [Accessed 25 Mar. 2019].
Szymanski, S., 2016. Professional Asian football leagues and the global market. Asian
Economic Policy Review, 11(1), pp.16-38.
Willacy, G. (2018). How Fifa's clampdown on loan deals may affect Premier League clubs.
[online] the Guardian. Available at: https://www.theguardian.com/sport/2018/dec/13/fifa-
rules-loan-premier-league-clubs-chelsea-manchester-city [Accessed 25 Mar. 2019].