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Football’s world governing body FIFA have introduced a new online system which will bring some welcome transparency to the murky world of player transfers.
The transfer matching system (TMS) was made compulsory for all transfers as of Friday and requires both clubs to electronically input the details of any potential transfer. These include contract details, agent payments and bank details. Once this is done, the two sets of data are compared and if they don’t match, then the transfer will not be completed.
One of the aims of the system is to provide a more streamlined process to the transfer of players between clubs which had been hopelessly outdated.
The previous way of submitting the necessary paperwork for a transfer included the use of the antiquated fax machine to send documents to FIFA for the rubber stamp of approval. It is precisely this laborious method which held up Rafael van der Vaart’s deadline day move to Tottenham this summer.
In the case of van der Vaart, speed was definitely of the essence and with TMS, transfers can be ratified in a matter of minutes. As all the details are online, it is extremely easy to cross-reference data and check that all the details are correct.
Transfers now will always be completed within the transfer windows as the system will not authorise any deals that have been submitted after the transfer window has closed.
All of these advantages will make it much easier for clubs to do business with each other but the real benefit in the TMS system is its ability to guard against money laundering and third-party ownership.
Organised crime has targeted football as an ideal medium in which to conduct fraud and money laundering due to the relative lack of regulations regarding player’s transfers.
Previously it had been easy for people to hide money in signing-on fees or tax evade by setting up offshore image rights corporations but with TMS, it would be impossible as all of the documentation for each and every deal will be available to view.
Indeed, general manager of TMS Mark Goddard has spoken about how the system was developed with money laundering in mind.
“Anecdotal evidence tells us that it [money-laundering] is probably quite a massive problem. We know of transfers of imaginary players by third parties and other groups using football in order to wash it and turn dirty money into legitimate funds.”
“This is potentially a billion-dollar industry, and something had to be done because some of these things were becoming standard practice.”
While it is used to combat the problem of money laundering in football, TMS is also a useful tool to stop the proliferation of third party ownership which has become an huge issue, particularly in South America and Asia.
The most high-profile case of third-party ownership is that of Carlos Tevez and Javier Mascherano whose commercial rights were owned by Kia Joorabchian through a number of offshore companies which were set up in his name.
FIFA have hailed the transfer matching system as “revolutionary” and “historic” but in reality it is only common-sense.
We live in a digital age where technology is at the heart of almost everything we do. It seems rather strange that FIFA have only now decided to implement this technology for all clubs.
In any case, the adoption of the TMS is surely a good thing for football as it will hopefully stamp out some of the more distasteful aspects of the beautiful game.
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