Rangers have paid an initial compensation fee of £639,920 for the signing of Connor Barron from Aberdeen.
A statement released by the Pittodrie club confirmed the guaranteed fee decided upon by an SPFL Independent Compensation Tribunal after the clubs failed to agree a fee.
Barron penned a four-year deal with Rangers in the summer with his contract up at Aberdeen.
Rangers had made an offer for Barron to prevent a compensation tribunal being necessary but Aberdeen deemed the offer unsatisfactory as a tribunal was triggered by Rangers.
Now, Aberdeen have issued a stinging statement demanding a review into the domestic and international training compensation systems as they cited the costly process of developing players through their youth system.
It states Rangers will pay an initial £639,920 for Barron with an additional £250k fee possible in performance-based payments. A sell-on fee will also be held by Aberdeen.
An Aberdeen statement read: "The Club has now received the decision from the SPFL’s Independent Compensation Tribunal, triggered by Rangers FC, with reference to Connor Barron’s summer transfer.
"The SPFL has clear procedural rules on the confidentiality of determinations in hearings such as this, and whilst Aberdeen FC had every intention of observing its confidentiality obligations, we now believe that we have been left with no option but to correct the misinformation that has been circulated following the erroneous and irresponsible leaking of the tribunal decision.
"In fact, the actual outcome of the tribunal was to reward Aberdeen FC a guaranteed sum of £639,920, with an additional £250k of conditional performance-based payments as well as future economic rights by way of a sell-on allowing Aberdeen to benefit from any future transfers of Connor as he progresses further in his career.
"The guaranteed fee and the likelihood of where the final compensation will eventually land, by way of the future conditional payments, justifies our decision to reject the full and final offer that was presented to us by Rangers back in May, which led to the Tribunal being convened."
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The statement continued: "However, this arduous and costly process, and even the final determination, highlights the need for an urgent review into both the domestic and international training compensation systems to ensure clubs continue to be incentivised and protected when it comes to the development of young players.
"By way of background, it may come as a surprise to many that cross border (international) training compensation, as set by FIFA, has not been adjusted since its inception in 2001, despite club costs more than quadrupling across the same period. Where the domestic landscape is concerned, FIFA require national associations to operate their own independent training compensation systems for young players moving within their own association. The SPFL has its own training compensation system where players are moving within the SPFL (these rules have also not been revised since their inception).
"We believe that an opportunity has been missed in Connor’s case, and where our domestic system is concerned, to ensure that clubs can be confident that the increasing, and significant, costs that are borne with academy player development are recognised and as such, there is an incentive for clubs to continue such level of investment. Therefore, ensuring that the training and development of players is of a particular quality to produce players such as Connor and those that have come before him.
"For instance, in our case, we currently spend approximately £2.2m per year to run our boys’ academy from U18s down. That’s £22 million over the next 10 years, in today’s money.
"The impact of (1) the outcome of the SPFL process that we’ve undergone for Connor and (2) Brexit driving big English clubs, aided and abetted by football agents who in turn are raking in significant six-figure fees to uproot the very best young Scottish talent whilst in their mid-teens for a pittance, will now feature into an ongoing review into our wider academy operation. This will assist us in focusing how best we balance the projected £22 million 10-year investment between developing players through our academy and acquiring young talent externally.
"We nurtured Connor for 14 years, during which he played at every age group for the Club from pre-academy to first team, played in Cup Finals, UEFA group stages, played in every age-group squad for Scotland, including being Under 21 Captain, and has now been called up to the full international team.
"Despite this long-term development and Connor’s numerous accolades, the determination (whilst worth the time and resources to obtain) falls a long way short of what we believe would be an appropriate award that recognises the training and development of Connor, and the costs incurred in that development. Indeed, whilst we would have received less compensation if Connor had gone cross-border via the FIFA system, it is our view that the categorisation and figures within the FIFA system, now decades old, nowhere near reflect today’s actual costs incurred by clubs.
"It is for this reason that we believe an important and urgent discussion is required both domestically and globally to ensure both training compensation systems are fit for purpose. Therefore, protecting the investment that is required to successfully train and develop players at a time when the Scottish FA is encouraging clubs to achieve more success in this area. This will also in turn foster and protect academies and give young Scottish talent opportunities for decades to come."
