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Kyle Newbould

Under-24 player compensation explained as Leeds United set to sign Sonny Perkins on a ‘free’

Leeds United look set to confirm signing number seven in the coming days, according to Fabrizio Romano, after Sonny Perkins completed his medical and signed personal terms with the club. The 18-year-old left West Ham in bitter circumstances in July, with the Hammers releasing a statement expressing their discontent over the player’s decision.

Perkins had been at West Ham since 2019, but only made three senior appearances - one of which was in their 3-2 defeat to Leeds in January. The London club had offered him a new professional deal this summer, but the teenager rejected the offer in a bid for more regular minutes.

He now looks set to sign for Leeds following the end of his contact at the London Stadium, ostensibly on a ‘free’ transfer, although that is not entirely true. The Football League rules state that where a professional player under the age of 24 refuses a new deal in order to move to a different club on a so-called ‘free transfer’ compensation is payable to the club that loses their player.

READ MORE: Leeds United 0-1 Aston Villa highlights: Narrow Whites defeat marred by Archie Gray injury

In many cases, the two involved clubs will find an arrangement in an attempt to avoid a potentially costly and lengthy tribunal. Leeds and Burnley agreed an undisclosed amount for Charlie Taylor in 2017, following the left-back’s move to Turf Moor at the age of 23.

The club may be inclined to lean towards quick arrangement, with the ongoing situation regarding Jean Kevin-Augustin at the Court of Arbitration for Sport, but West Ham’s anger at Perkins’ actions may encourage them to play hardball.

Should the two clubs remain some distance away in terms of their own valuations, the matter will be dealt with through an arbitration process, led by the Professional Football Compensation Committee (PFCC). Their role is to determine the amount of compensation that should be paid to a club, based on the time and money they have spent developing the player.

Each club is required to provide evidence as to why they value the player where they do, before the PFCC make a judgement based on several factors, including the length of time at the departing club, the age and playing record of the player, and the cost of running each club’s academies.

The judgement is likely to consist of a base compensation fee, followed by several add-ons related to an increasing prominence within the first team, for example.

One of the most notable PFCC rulings came 2015, when Burnley forward Danny Ings refused a contract with the Clarets to join Liverpool. The striker had spent four seasons at Turf Moor, playing 122 games and scoring 38 goals. The Reds were ordered to pay an initial £6.5million compensation, with a further £1.5million add-ons and 20% of any future sale.

Jurgen Klopp’s side also had to pay a compensation fee for Harvey Elliott after he signed from Fulham in 2019. The £1.5million base rate with up to £2.8million add-ons was the highest for a player under 16.

Leeds and West Ham will both hope to be able to avoid such a process, with an agreement between the two much more likely. But any discrepancies in valuation could lead to another long and arduous spell in the courts for both clubs and a hefty fee for the Whites.

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