New FIFA Football Agent Regulations… At a Glance
UPDATE: A NUMBER OF THE MOST CONTENTIOUS PROVISIONS IN THE FIFA FOOTBALL AGENT REGULATIONS (INCLUDING SOME THAT ARE SUMMARISED BELOW) HAVE BEEN SUSPENDED PURSUANT TO FIFA CIRCULAR 1873. WHILST THE FUTURE OF THOSE SUSPENDED PROVISIONS REMAINS UNCERTAIN, THEY DO NOT FORM PART OF THE FIFA FOOTBALL AGENT EXAM. ALL OF OUR MOCK QUESTIONS HAVE BEEN UPDATED TO EXCLUDE THE SUSPENDED PROVISIONS.
The FIFA Regulations on Working with Intermediaries were widely criticised. Many of the problems that those working in the industry predicted when the intermediaries regime was implemented in 2015 materialised and FIFA openly acknowledged that its significant step back from the regulation of football agents (or intermediaries) did not prove successful. And so, FIFA has sought to remedy its ill-advised ‘deregulation’, by introducing prescriptive rules which not only seek to regulate closely the activities of Football Agents, but also reintroduce a barrier to entry into the profession: the exam.
But it’s not just a barrier to entry to new entrants into the industry. Anyone working in the industry pre-2023 who did not pass the exam pre-2015 needs to pass the exam to continue working as a football agent.
Candidates sitting the agent exam will need a detailed knowledge of FIFA’s Football Agents Regulations (as well as FIFA’s other rules and regulations). Below is just a summary of some of the key points in the Football Agents Regulations:
The Agents Regulations reintroduce a mandatory licensing system for agents, but unlike the pre-2015 regime, the licence is issued by FIFA itself, rather than national associations. The new regulatory regime marks a return to player and club representatives being referred to as ‘agents’ (between 2015 and 2023, they were referred to as ‘intermediaries’).
The Agents Regulations apply to all ‘Representation Agreements' with an international dimension – domestic representation agreements and transactions are governed by each national association’s regulations, which are required to implement FIFA’s new regulatory regime.
Only a natural person (i.e. a human, not a company/agency) may apply to become a licensed football agent, and he/she will have to pass the FIFA exam – that’s why you’re here, after all! There is an annual licence fee and licensed agents must undertake the required FIFA continuing professional development (CPD) sessions online on an annual basis.
Licensed football agents will be permitted to undertake ‘Football Agent Services’, which are football-related services performed on behalf of a Client with the purpose and objective of concluding a Transaction. A ‘Transaction’ is any negotiation or other related activity where the intention or effect is to facilitate the employment, registration / deregistration or transfer of a player or the employment of a coach.
For the first time, coaches / managers are included within the definition of Client (alongside clubs and players), so representing them will be a regulated activity – the term “Individual” is used to refer to a player or coach.
A Representation Agreement, with a maximum duration of 2 years, must be lodged through the ‘Platform’ within 14 days of signature. The Platform is a digital platform operated by FIFA through which the licensing process, dispute resolution process, CPD and reporting will take place.
A Football Agent can only approach or enter into a Representation Agreement with a minor in relation to Football Agent Services in the six months before the player reaches the age at which they can sign their first professional contract in the relevant country in which the minor will be employed (and subject to prior written consent having been obtained from the minor’s legal guardian).
Dual representation (acting for both the Individual and the club acquiring his/her registration) will still be permitted. However, a football agent’s fees may only be paid by the Client (which in most cases will be the player in question), though an Individual can authorise their club to deduct the service fee from their remuneration. The only exception to that rule is that an Individual may authorise a club to pay the Football Agent’s fees on their behalf if the Individual’s annual gross remuneration is less than USD 200,000. Furthermore, where a Football Agent acts on behalf of a club and an Individual in the same Transaction, the Engaging Entity may pay up to 50% of the fees due. (These restrictions on dual representation are currently suspended.)
Our views on the (currently suspended) cap on commission can be read here. If the cap were to be applied (which is not currently the case), the maximum fee / commission rate for the provision of Football Agent Services in a Transaction would be as follows:
if the Client is an Individual or an Engaging Entity, commission would be capped at 3% of the Individual’s remuneration (or 5% if the Individual’s remuneration is less than USD 200,000, excluding any conditional payments)*;
if the Clients are the Individual and Engaging Entity (i.e. dual representation), commission would be capped at 6% of the Individual’s remuneration (or 10% if the Individual’s remuneration is less than USD 200,000, excluding any conditional payments)*; or
if the Client is the Releasing Entity, commission would be capped at 10% of the transfer fee (which excludes any sell-on fee).
* If an Individual’s remuneration (excluding any conditional payments) is above USD 200,000, the service fee calculated on the first USD 200,000 would be capped at 5% and the excess would be subject to the 3% cap.
Commission payments would be payable in quarterly instalments for the duration of an employment contract (traditionally fees are payable annually or biannually). All payments will be made through the newly-established FIFA Clearing House, the aim being to increase financial transparency and FIFA’s ability to scrutinise regulatory compliance (albeit this requirement remains suspended).
Football agents are prohibited from approaching or entering into a Representation Agreement with a Client who has an exclusive Representation Agreement with another football agent, except in the final two months of that existing agreement – FIFA has sought to address the fact that Clients’ unrestricted ability to conclude representation contracts under the existing FIFA Intermediaries Regulations has led to uncertainty, disputes and liabilities to multiple intermediaries.
FIFA will make publicly available: (i) the names and details of all football agents; (ii) the Clients they represent (including whether the representation of any particular Client is exclusive or non-exclusive and the expiry date of Representation Agreements); and (iii) the details of all transactions involving football agents, including the fees paid to them (the level of detail is not yet known).
Whereas the 2015 FIFA Intermediaries Regulations marked the end of FIFA’s competence to resolve disputes between intermediaries or between intermediaries and players/clubs, the new Agents Regulations establish the Agents Chamber of the Football Tribunal, which will be competent to hear disputes arising out of or in connection with a Representation Agreement with an international dimension (albeit the jurisdiction of the Agents Chamber is currently suspended).