Why Hamburg’s relegation means less David Bates compensation for Rangers

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Rangers will receive less money for David Bates from Hamburg than previously thought, after Die Rothosen were relegated to the German second tier.

The defender, who spent three years at Raith Rovers before joining the Ibrox side in 2017, agreed a four-year deal at the Volksparkstadion, with FIFA rules stating that Rangers would be due a fee under the Training Compensation guidelines.

David Bates will be playing his football at the Volkparkstadion from next season. Picture: SNS Group

David Bates will be playing his football at the Volkparkstadion from next season. Picture: SNS Group

Raith will also be due compensation due to the player’s age.

• READ MORE - Rangers defender David Bates agrees four-year deal with Hamburg

FIFA’s guidelines state: “Training compensation shall be paid to a player’s training club(s): (1) when a player signs his first contract as a professional, and (2) each time a professional is transferred until the end of the season of his 23rd birthday.”

But Hamburg’s demotion from the top flight to the 2. Bundesliga means that they are now classed by UEFA as a “Category 2” club rather than a “Category 4” club, reducing the amount they will be expected to pay Rangers - and the subsequent payment from the Ibrox club to Raith will also be lower.

Raith’s former chairman Alan Young told The Scotsman’s sister paper Fife Free Press last month that the amount the Stark’s Park club were hoping to receive could have reached six figures if Hamburg had avoided relegation.

Young, who stepped down after the club’s failure to win promotion back to the Scottish Championship, added: “We thought [Bates] might be sold by Rangers and we’d get a sell-on percentage, but we’re still covered as far as that’s concerned, and we get a reasonable amount of money coming in, which will certainly help the club.

Raith’s majority shareholder John Sim told The Herald that the Kirkcaldy club were expecting a lower fee, saying: “David Bates has gone on to bigger and greater things, and we are potentially going to see a good return, touch wood.

“But we were all very disappointed when Hamburg were relegated because that is going to have a financial knock-on effect to Raith Rovers to what we would hope to getr from that move.”

• READ MORE - Rangers ‘balked at David Bates’ wage demands’