Do City owe a payment for Elano?

Manchester City face a probe by Fifa after Shakhtar Donetsk lodged a complaint about a payment they say they are owed for the sale of Elano.

The Ukrainian club, who sold Elano, 27, to City in 2007, say they are still owed a £475,000 "solidarity payment".

>>bbc.co.uk

When the story was first reported this morning, the 'solidarity payment' wasn't mentioned, with the angle very much along the lines of City failing to meet a payment in respect of his transfer fee, rather than a dispute over the terms of it.

I wasn't familiar with regard the solidarity payment, but there is a very wordy document on FIFA.com which appears to cover a previous test case.

Interestingly though, this document from sports law firm James Chapman & co. suggests that a claim for a solidarity payment must be made within 30 days of the transfer being completed.

The FA website has perhaps the clearest explanation and contains the following reference to this payment:

If a Professional moves during the course of a contract, 5% of any compensation, with
the exception of Training Compensation, paid to his Former Club shall be deducted
from the total amount of this compensation and distributed by the New Club as a
solidarity contribution to the club(s) involved in his training and education over the
years. This solidarity contribution will reflect the number of years (calculated pro rata
if less than one year) he was registered with the relevant club(s) between the Seasons
of his 12th and 23rd birthdays, as follows:

– Season of 12th birthday: 5% (i.e. 0.25% of total compensation)
– Season of 13th birthday: 5% (i.e. 0.25% of total compensation)
– Season of 14th birthday: 5% (i.e. 0.25% of total compensation)
– Season of 15th birthday: 5% (i.e. 0.25% of total compensation)
– Season of 16th birthday: 10% (i.e. 0.5% of total compensation)
– Season of 17th birthday: 10% (i.e. 0.5% of total compensation)
– Season of 18th birthday: 10% (i.e. 0.5% of total compensation)
– Season of 19th birthday: 10% (i.e. 0.5% of total compensation)
– Season of 20th birthday: 10% (i.e. 0.5% of total compensation)

On the face of it, it refers to the payment being 'distributed by the new club', meaning we would be on the hook for it.

Where City may be arguing this though, is if under the terms of the deal to bring Elano to the club, it was taken that part of the transfer fee would be used to cover the solidarity payment.

As there has been no comment from the club so far regarding the claim it is difficult therefore to confirm who is in the right over this matter, with perhaps not much light set to be shed on it given FIFA's comment today:

"As the relevant procedure will be started in due course, we cannot provide further comments for the time being."

It will be interesting to see how this one plays out once FIFA's investigation is complete, and if anyone has anything further on as to who is likely responsible for the payment, feel free to add a comment.