Determining the level of compensation for out-of-contract football players in English Football: The role of the PFCC

This article was originally published on 29 June 2016, followed by further editions in August 2021 and October 2022. It has now been completely revamped and updated for accuracy and comprehensiveness.

As the standard of youth football in the English professional league system continues to rise in academies across the country, so too does the importance of the Professional Football Compensation Committee (PFCC). In the wake of England’s victory in the UEFA European Under-21 Championships, we analyse the role of the PFCC in awarding compensation for out-of-contract players under the age of 24 in light of comprehensive amendments to its regulations.

Ahead of the 2024/2025 season, extensive changes were implemented in the Premier League’s and English Football League (EFL)’s regulations for the PFCC, which aimed to provide greater clarity on the procedure, time limits, general powers and decision making of that body. In June 2025, further changes were ratified by the Premier League, EFL and the Professional Footballers’ Association (PFA) ahead of the 2025/2026 season.

A common misconception is that players who move clubs before signing their first professional contracts, or at the expiry of a professional contract under the age of 24, are moving “on a free”, or at most, subject to the payment of minimal compensation. The reality is that, for moves within England at least, in the absence of agreement between the two clubs, the PFCC is tasked with considering the appropriate level of compensation to be paid to the club which has invested in developing the player. As has been seen consistently over many years, compensatory awards can be considerable.

Harvey Elliott, player of the tournament at the recent Under-21 European Championship^[1], is now a household name in English football. His rise to success demonstrates the importance of the function played by the PFCC, given that in 2021 it awarded Fulham a guaranteed compensation of £1.5m, plus a further £2.8m in contingent sums, in respect of Elliott as a then Under-16 player. Elliott’s honours list at club level now includes winner's medals for the Premier League, two EFL Cups, the UEFA Super Cup and the FIFA Club World Cup. Such success only brings into sharper focus the crucial role of PFCC awards in furthering the career development of English football’s brightest talents.

In this article Liz Coley, who has represented numerous clubs before the PFCC and Finley Davis consider the background to the compensation system, the recent changes to the regulation of the PFCC and the PFCC’s methodology in determining the level of compensation.

Read the full article in LawInSport here.