A few months ago, on our blog, we analysed from a comparative perspective one of the most important figures in our sector: the sports agent. We focused in particular on the differences in the regulations of three professional sports: football, basketball and cycling.
If you are interested in reviewing it, the full post can be read by following this link.
Since this is a subject we discuss on a daily basis, we have decided to analyse again the role of the agent but this time focusing on a single sport, football.
In the absence of a common worldwide regulation, we will see how national federations play a central role. Specifically, we will analyse differences and common elements of the regulations on agents as laid down by The FA (England and Wales), the RFEF (Spain), the FFF (France) and the FIGC (Italy) by answering these qurestions:
- Who can act as a registered agent?
- Is the registration procedure for each of these federations complicated?
- How much does it cost to keep my registration?
- What is the maximum duration of a representation contract that I can sign as agent with my client?
- Is there a limit to the amount of remuneration that I can ask as agent to my client?
- Can I represent several parties in the same transaction?
- What about minors?
- Are there any communication obligations to the different federations?
- Are there any special jurisdictions for disputes between an agent and a player/club?
The activity of an agent (or intermediary, as defined by FIFA) in football is an eminently transnational activity in that it most often involves intervention in several countries.
Since FIFA has largely delegated this task to its members in 2015, to now considering regaining control with the upcoming reform entering into force in 2023, at present there are still no harmonised rules governing this activity between the various national federations.
Agents are therefore obliged to be familiar with the various set of provisions that they may encounter when dealing with international transfers and when they are required to act in the respective territories.
In this context, we have considered to address in this article some peculiarities of the regulations governing the agents’ activities of some of the most important European football federations and particularly The FA (England and Wales), the RFEF (Spain), the FFF (France) and the FIGC (Italy), highlighting their differences and similarities.
A first question: who can act as a registered agent?
These are exclusively persons who have registered with the relevant federation where they are going to operate. The FA, the RFEF, the FFF and the FIGC all have a registration obligation in place, which is in line with the FIFA Regulations on Working with Intermediaries.
The second question that comes to mind: is the registration procedure for each of these federations complicated?
The two most straightforward registration procedures are those of the FA and the RFEF in England, Wales and Spain, which simply require identification documents and, in the case of Spain, the criminal record, a CV and a basic interview to assess whether the candidate has a minimum knowledge of the regulations and the football sector.
In other words, it is primarily a mere administrative registration.
In contrast, in the other two federations, namely FIGC of Italy and FFF in France, the process is much more complex in that it is based on the existence and verification of professional qualifications.
In Italy, the registration must be obtained by both the FIGC and the CONI and it requires, in principle, the passing of an examination organised by each of them. As an exception, agents holding a licence issued by the FFF or by FIFA before 31 March 2015 are exempt from this examination and can directly register with the FIGC without needing to pass the exam. For foreigner agents then, the Italian regulations provide for the so-called domiciliation to regularly operate in Italy. Agents that comply with the following requirements – being domiciled in a State other than Italy for at least one year, being registered with another football federation affiliated with FIFA for at least one year and having executed at least two mandates in the previous year – may be registered with the FIGC as “domiciled agents” through another agent regularly and permanently registered with the FIGC (either Italian or foreigner holding a FFF or pre-2015 FIFA license) by entering with him into a cooperation agreement. After some debate, the FIGC has recently confirmed that domiciled foreign agents can directly invoice Italian football clubs or players their fees, whilst the agent where they are domiciled needs to invoice the club or player only the part of his activities carried out in the respective deal.
In France, as in Italy, only persons holding a licence issued by the FFF – the validity of which is not subject to any time limit – following the successful completion of an examination organised by the FFF and the French Olympic Committee may work as sports agents. However, there are specific provisions for agents who are nationals of an EU country who allow them to exercise the activity of agent in the French territory on a temporary and occasional basis. They must get an authorisation from the FFF which is subject to the condition that the activity of sports agent is regulated in the Member State of their establishment or, failing this, to the proof that they have exercised such an activity for at least one year during the previous ten years. This authorisation will be valid for a period of one year but can be renewed.
So: how much does it cost to keep my registration?
Not so much compared to the values of the market.
As to the registration costs, the Spanish RFEF asks for a payment of EUR 861 which is valid until 31 December of the respective year.
In Italy CONI and FIGC ask for a payment of EUR 500 each for each natural year. According to The FA, each registered party – being natural or legal person – must pay GBP 500 plus VAT, for a period of 12 months from the payment.
Finally, in France, if a national of a Member State of the EU or the EEA Agreement wishes to obtain an authorisation to operate he/she will have to pay an annual fee of EUR 500.
I am now registered, what is the maximum duration of a representation contract that I can sign as agent with my client?
In Spain, in Italy and in France, the duration of the representation contract is limited to two years, with the FFF and FIGC regulations specifying that the contract cannot be tacitly renewed.
In England and Wales, The FA also limits the duration of the contract to two years, but this limit applies only to contracts signed between an agent and a player and not between an agent and a club.
This is a different approach compared to other countries, like Switzerland for instance, where no time-limitation imposed by the Swiss FA exists for a representation contract concluded by an agent.
Is there a limit to the amount of remuneration that I can ask as agent to my client?
There is no harmonisation on this point within the four national federations we are analysing.
Although The FA has adopted the FIFA’s recommendations in full suggesting – but not obliging – a commission equal to 3% of the player’s total gross remuneration over the entire duration of the employment contract or 3% of the transfer fee, this is not the case for the other federations.
Indeed, the RFEF is silent on the matter. However, it does specify two important elements: firstly, that the remuneration of the agent hired to act on behalf of the player is based on the player’s basic gross income corresponding to the duration of the employment contract, and secondly, that the remuneration paid by the club or the player may take the form of a lump sum, fixed or variable, which may be paid in several instalments if necessary.
Similarly, the FIGC regulations do not provide for any limit on the commission to be received by the agent. In particular, the modalities of the remuneration due to the agent are at the free disposal of the parties. It may be a lump sum or a percentage based on the value of the transaction or on the total gross amount of the player’s salary under his employment contract.
In France, things are different. The FFF imposes a mandatory limit set by law equal to 10% of the amount of the contract concluded by the parties on the remuneration that can be received by an agent.
This limit also applies if several agents are involved in the same transaction. It can be further clarified that when a sports agent brings together parties interested in concluding an employment contract, his commission is calculated as a percentage of the gross remuneration, whereas when he brings together parties interested in concluding a transfer agreement, his commission is calculated as a percentage of the amount exclusive of tax of the said agreement, i.e., the amount on which the VAT is calculated.
Can I represent several parties in the same transaction?
In France, as a matter of principle, it is the client who pays the agent. However, it is possible to provide, subject to an agreement between the parties, that the agent’s remuneration will be paid by the club in the name and on behalf of the player. However, conflicts of interest – i.e. the agent representing multiple parties in the same deal – are prohibited under sanction of nullity of the representation contract insofar the French law prohibits double agency.
This means that in France the agent can only act on behalf of one of the parties to the transaction.
This absolute prohibition does not exist in Italy with the FIGC rules allowing the agent to represent one or more parties (i.e., the player, the selling club, the buying club) at the same time. In such a case, however, the agent must disclose the conflict of interests by means of an appropriate formal declaration and obtain the written consent of all parties concerned before engaging in negotiations.
In England and Wales, The FA regulations adopt the same approach authorising an agent to act for one party to a transaction unless the same agent and the other parties involved fully comply with the requirements regarding consent to dual/multiple agency(ies) including the amount of the earned fees.
The FA regulations also allow for the player to ask his club to pay his agent directly. The club may then either make an effective deduction in periodic instalments from the player’s net salary in favour of the agent, so that the sums are deducted and paid in fulfilment of the player’s obligation to the intermediary, or discharge the player’s obligation to his agent on behalf of the player as a taxable benefit for the latter.
In Spain,the RFEF regulations allow the player and the club to use the same agent provided that this situation is disclosed to the other party and that the club and the player expressly agree to it in writing prior to entering into the relevant negotiations, any remuneration for the services of an intermediary must be paid exclusively by the client. The RFEF regulations also allow, after the transaction has been signed and subject to the club’s agreement, the player to agree to the club remunerating the agent on his behalf. In this case, the remuneration shall be made in accordance with the payment terms agreed between the player and the agent.
What about minors?
The regulations of all the four national federations prohibit the payment of an agent when a player is a minor.
The Italian and French regulations prescribe, a fortiori, this prohibition on pain of nullity of the representation contract.
Nevertheless, this prohibition does not entail the prohibition of concluding a representation contract with a minor which must obviously be signed by his legal representative.
The Italian FIGC and The FA of England and Wales nonetheless set a threshold of 16 years for the signing of such a contract whilst no specification is provided by the French FFF and the Spanish RFEF.
Are there any communication obligations to the different federations?
Both the RFEF, FA, FIGC and FFF oblige to make specific communications when acting as agent under their auspices.
In particular, in Italy the FIGC requires that representation contracts be deposited at a specific body within 20 days from their signature under penalty of ineffectiveness, accompanied by proof of payment of EUR 250 as a contribution to the costs incurred by the FIGC in keeping the mandates in its archives.
The FA also requires that representation contracts be filed within 10 days from their execution and, in any case, at the latest at the time of registration of a transaction by the Association.
In France, representation contracts signed with players, coaches, clubs, cooperation contracts between an FFF agent and a European or non-EU agent, employment contracts and transfer agreements must be filed within one month of their signature. It should also be noted that the agent’s remuneration can only be paid after the representation contract has been transmitted.
No specific requirement is set in such regard by the Spanish RFEF.
Are there any special jurisdictions for disputes between an agent and a player/club?
While violations of the provisions of the regulations of these various federations may be subject to disciplinary sanctions imposed by their competent bodies, it should be emphasised that there is no specific exclusive body to deal with contractual disputes arising from representation contracts.
Disputes may be brought before the ordinary courts or, if necessary, before the Court of Arbitration for Sport (or any other national arbitration body chosen) in the event of an arbitration clause being provided for to this effect.
Italy has been the only country of these four to provide for an alternative system of justice for agents in the so called Sport Guarantee Panel (Collegio di Garanzia dello Sport) at the Olympic Committee – CONI, which is competent if the parties do not provide otherwise in their contracts.
It has also to be noted that, with the FIFA reform expected in 2023, the FIFA Football Tribunal will become again competent for international disputes involving agents whilst, on this date, FIFA is not accepting jurisdiction on such disputes since 2015.
From this quick slide show of the legal framework provided by these four federations, one will quickly understand that there are many similarities and differences in the regulations governing access to the profession of sports agent as well as in its exercise.
In this respect, it will be particularly interesting to see in the following months what consequences the new FIFA regulations on agents will have on this profession and in particular their impact on existing national regulations.
