The PT asked AI to come up with a likely compensation fee for Peterborough United following the transfer of Ricky-Jade Jones
Peterborough United are set to miss out on millions following the transfer of striker Ricky-Jade Jones to German Bundesliga side St Pauli.
Jones completed the shock move over the weekend after his contract at Posh was allowed to expire. Posh can now expect a much lower compensation fee than if he had moved between two English clubs.
The PT used artificial intelligence (AI) to come up with a likely fee for Jones and the impact on it now he’s decided to move abroad. It did it’s best!
When English clubs are unable to come to an agreement over a fee for a player under the age of 24 who falls out of contract the Professional Football Compensation Committee (PFCC) makes the decision. Their tribunal takes into a range of factors, including the player's playing record, interest from other clubs, the contracts on offer, previous fee, age and time with the academy.
Posh were planning on presenting evidence of, among other things, considerable seven-figure bids for Jones which had been turned down in the past.
But the PFCC have no jurisdiction for cross-border moves so the much lower FIFA fee comes into play. The FIFA compensation fee can be determined with little more than knowledge of the player’s date of birth, the dates he joined and left his club and the categorisation of the clubs involved.
Clubs are placed into four tiers (Categories 1-4) based on their investment in youth development.
Category 1: Clubs are considered to invest heavily in youth development and typically receive the highest training compensation.
Category 2: Clubs have a moderate level of investment in youth development and receive a corresponding level of compensation.
Category 3: Clubs have a lower level of investment in youth development and receive lower compensation.
Category 4: Clubs have the lowest level of investment in youth development and receive the lowest training compensation.
Compensation fees are paid out using a strict formula. Players who spent four years (ages 12-15) at a category 4 club and then four years at a category 1 or 2 club could trigger a compensation fee of 340,000 Euros made up of 40,000 Euros for the first four years and 300,000 Euros for the next four years.
Jones was at Posh from aged nine so spent eight years in the club’s academy. He has moved abroad aged 22.
As examples Danny Ings once moved from Burnley to Liverpool for a tribunal set fee of up to £8 million in 2016, a tribunal record at the time.
But Rangers were able to but forward Joe Aribo from Charlton for just £300k when he had been valued at considerably more than that by the selling club. The cross-border compensation fee formula was employed and came up with a price seen as a bargain by both clubs.