Chelsea must pay Manchester City an initial fee of £3.5m for Daniel Sturridge and the striker's transfer could eventually cost the Londoners around £7m.
The Professional Football Compensation Committee hearing ruled a compensation payment of £3.5m was due, with additional payments of £500,000 due after each of 10, 20, 30 and 40 first-team competitive appearances in all competitions.
A further payment of £1m will be due if Sturridge makes a full international appearance, while City will be due a 15 per cent sell-on fee if the 19-year-old leaves Stamford Bridge.
A statement read: "Chelsea FC will pay an initial fee of £3.5million with additional payments of £500,000 after each of 10, 20, 30 and 40 first-team competitive appearances.
"There will be a further payment of £1million if the player makes a full international appearance.
"Manchester City will receive 15% of any sell-on fee if the player is transferred."
Sturridge joined Chelsea in July on a four-year deal after his contract expired at City.
The two clubs could not agree a fee and, because of his age, City were entitled to some recompense, which was determined by the tribunal.
Sturridge, nephew of former Derby forward Dean, made a total of 30 appearances for City, scoring six times.
Since joining Chelsea, the England Under-20 international has made eight appearances, finding the net for the first time with two goals in the Blues' 5-0 FA Cup third-round defeat of Watford earlier this month.
Chelsea declared themselves satisfied by the outcome of the Premier League tribunal.
"We are content with the outcome of today's tribunal regarding Daniel Sturridge's transfer from Manchester City," a statement read.
"The initial fee is very close to what we first offered.
"Any subsequent payments are directly linked to the success of the player and that is satisfactory to us."Reuse content