Newcastle Utd must pay clubs €75,000

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Newcastle United have been ordered to pay more than €75,000 compensation to Airtricity League clubs, Mervue United and Salthill Devon, for young Irish teenager Stephen Folan.

Folan, 19, has so far yet to feature in the Newcastle first team squad, but has been a regular in their reserve and youth teams over the past two seasons. Folan is currently recovering from injury having had an injury ravaged campaign since pre-season with back and ankle complaints.

The Galway based club’s made a claim through FIFA to seek compensation after the Premiership club paid neither club any monies due after the then 16 year Folan signed for them. Mervue United have been awarded €35,000 by FIFA's Player Status Committee and Salthill Devon will receive around €30,000. Newcastle can still appeal against FIFA's decision within ten days of receiving the governing body’s ruling.

The two Irish clubs decided to take their cases to FIFA headquarters in Zurich after failing to win any compensation from Newcastle when Folan signed for them two years ago.

Under new FIFA regulations, juniors clubs outside of a senior club's geographical area are entitled to €10,000 for every year a player is registered from the age of 12. Once the player reaches 15, clubs can increase their claim to €50,000.

Folan, an Irish Under-17 international, signed professional terms last year and is now an established member of Newcastle's reserve team squad. Hopes are high that he will make the breakthrough into the first team. He joined Mervue United at the age of 7, and left the club after playing under 15. He was a member of the Mervue club’s under 14 SFAI Goodson Cup winning team back in 2006 along with Manchester City and Irish senior international Greg Cunningham.

After Mervue Utd, Folan briefly joined Galway Hibernians who did not pursue a claim. He then signed for Salthill Devon, and played a season under 16 for them before signing for Newcastle Utd. Newcastle Utd now have 30 days to pay both Galway club’s under FIFA rules unless they decided to appeal, which they must do before the 4th of April.

In a previous FIFA ruling Galway club, Cregmore Claregalway FC, received €15,000 from Manchester City for Greg Cunningham under the protection scheme only last year after they filed a claim with FIFA, as he had played with them up to under 12, before joining Mervue Utd.