Revealed: The EFL compensation rules that will determine Sunderland's windfall if Denver Hume departs

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We take a look at the compensation rules that govern EFL clubs, and will determine how much Sunderland will net if they lose Hume this summer.

It follows the latest development confirmed by head coach Lee Johnson after the latest contract offer was turned down.

Hume is still recovering from an injury at Sunderland following the expiration of his deal this summer.

The defender has been offered fresh terms on Wearside but the contract remains unsigned with Sunderland having added left-back Dennis Cirkin to their ranks.

What do the compensation rules state?

The rules around Bosman transfers state that clubs will be due compensation for any player aged 24 or under who is offered equivalent or improved terms, but chooses to turn them down to move elsewhere. The compensation will be paid by the club whom they are next registered to.

For Sunderland, that could mean Hume would be the subject of a fee if he departs the club this summer – although much will depend upon the contract offered.

How is compensation decided?

The most straightforward way for compensation to be decided is for the two clubs to amicably agree upon a fee themselves, but this is quite uncommon.

More often than not, the level of compensation is decided by the Professional Football Compensation Committee (PFCC) – or as they are more commonly known, a tribunal.

Who is on the committee?

The committee is comprised of a minimum of four members:

- A chairperson with an ‘appropriate legal background’

- Representatives from the leagues in which the transferor and transferee club play (or one representative if they play in the same league)

- A member of the PFA

- A member of LMA

What do they take into consideration when setting the compensation level?

A number of key criteria are assessed when deciding what level of compensation a club will receive.

These include the following:

- The status of both clubs involved in the transaction (i.e. their current league and academy status)

- The age of the player

- The amount of fee paid by the player’s current club (if applicable) to obtain their registration

- The length of time for which for the club held the player’s registration

- The length of contract offered – and turned down – by the player’s current club, and the contract they will be signing at their new club

- His playing record, including any international appearances

- Substantiated interest from other clubs in acquiring the player

- Costs caused by paying for the player’s accommodation, training and development, and running the academy (if they progressed through the club’s academy.

Are there any set fees Sunderland will be guaranteed to receive?

No. There are no set fees laid out by the committee. Each case is judged on a player-by-player basis.

Is the committee’s decision final?

Yes. The EFL regulations state that the committee’s decision is ‘final and binding’ – meaning the purchasing club must pay the compensation fee they decide.

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