Raith Rovers have announced that they expect to receive compensation as part of David Bates’ move to Hamburg at the end of the season from Rangers under freedom of contract.
Bates spent three-and-a-half years at Stark’s Park before moving to Ibrox and the Fifers are entitled to compensation under FIFA’s training compensation scheme.
The Gers will also receive compensation for the 18 months Bates has been at Ibrox – but the final amount will depend on whether Hamburg can avoid relegation from the Bundesliga for the first time in their history.
“We do have an entitlement and there will be funds coming to Raith Rovers, but not until he signs a proper contract with Hamburg,” Raith chairman Allan Young said, as quoted by Fife Today.
“Just because it’s a pre-contract doesn’t mean it’s definitely going to happen.
“Hamburg are in a fairly precarious position in the league, and I’m told that for compensation purposes they are defined currently as a category four club.
“If they get relegated that would change to a category two club and that has an affect on the amount of compensation that gets paid, so at the moment we’re rooting for Hamburg.
FIFA’s training compensation scheme sees clubs compensated when players under the age of 24 move under freedom of contract with a fixed formula in place based on the level of both clubs to determine the amount owed.
Bates joined the Light Blues from Raith on loan in August 2016 before agreeing a permanent move to Ibrox the following January.
The 21-year-old has made 25 appearances for the first-team but is currently sidelined with an ankle injury suffered in last month’s 3-2 Old Firm defeat at Ibrox.
Football Insider verdict
This is exactly why FIFA introduced training compensation for young players and Raith should stand to land a relative windfall if Hamburg can stay in the Bundesliga. The Gers will stand to make less than £100,000 regardless of what division HSV find themselves in next season. With Raith also having inserted a sell-on clause when they allowed Bates to move to Ibrox, it is good that the Fifers are being compensated despite Bates moving on a ‘free’ transfer. Despite his recent performances, it’s unlikely Rangers would’ve made more if they were selling him this summer anyway so it’s worked out about as well as it could for the Gers.