New FIFA Football Agent Regulations
Sports and Event Management Focus
The new regulations, which came into force on 1 October 2023, introduce a number of measures aimed at improving the transparency and fairness of the football transfer system.
Law Update: Issue 362 - Sports and Event Management
Bandar Al HamidaniPartner,Corporate Commercial
Harry TaylorAssociate,Corporate Commercial
The FIFA Council approved the new FIFA Football Agent Regulations (FFAR) on 16 December 2022. The new regulations, which came into force on 1 October 2023, introduce a number of measures aimed at improving the transparency and fairness of the football transfer system. Member associations have been required to implement and enforce national football agent regulations by 30 September 2023.
One of the key changes introduced by the new regulations is the introduction of a mandatory licensing system for football agents. To be licensed, an agent must meet a number of eligibility requirements, including having a clean criminal record, passing an exam, and paying an annual fee. Moreover, the agent must never have been the subject of a suspension of two years or more, disqualification or striking off by any regulatory authority or sports governing body for failure to comply with rules relating to ethics and professional conduct, nor may the agent be an official or employee of FIFA, a confederation, a member association, a league, a club, a body that represents the interests of clubs or leagues or any organisation connected directly or indirectly with such organisations and entities. This will help to ensure that only qualified and reputable individuals are allowed to operate as football agents.
Another important change is the general prohibition of multiple representation. This means that an agent can no longer represent both the player and the club in a transfer negotiation (save for situations where the agent has obtained the prior written consent of both clients). This is designed to prevent conflicts of interest and ensure that the player's best interests are always protected.
The new regulations also introduce a cap on agent fees. This means that agents can no longer charge an unlimited amount of money for their services. The cap is conditional upon representing the individual, engaging entity, or releasing entity and the remuneration of the individual, in accordance with the table:
Client
Service Fee Cap
Individual’s annual remuneration less than or equal to USD 200,000 (or equivalent)
Individual’s annual remuneration above USD 200,000 (or equivalent)
Individual
5% of the individual’s remuneration
3% of the individual’s remuneration
Engaging Entity
Engaging Entity and Individual (permitted dual representation)
10% of the individual’s remuneration
6% of the individual’s remuneration
Releasing Entity (transfer compensation)
10% of the transfer compensation
FIFA intend the new FIFA Football Agent Regulations to be a significant step towards a fairer and more transparent transfer system, and help to protect players from those agents acting in an unscrupulous manner and to ensure that clubs are not overcharged for their services. The regulations are also likely to have a positive impact on the overall integrity of the football transfer market.
In addition to the measures mentioned above, the new regulations also include a number of other provisions, such as:
the requirement for agents to provide players with independent legal advice before signing a representation agreement (and obtain their written confirmation that they have either obtained the advice or decided not to take such independent legal advice);
the prohibition of agents from paying or receiving commissions from third parties; and
the requirement for agents to keep detailed records of all their transactions.
The new FIFA Football Agent Regulations are a comprehensive set of rules that are designed to improve the transparency and fairness of the football transfer system. They are a significant development and we await to see the impact and effect on the overall health of the game.
The new FIFA Football Agent Regulations are likely to have a number of implications for the football industry. Some of the key implications include:
Increased transparency: the mandatory licensing system and the requirement for agents to keep detailed records will make it easier for clubs and players to track the activities of agents and to ensure that they are not being overcharged.
Reduced conflicts of interest: the general prohibition of multiple representation (save for prior explicit consent by both clients) will help to reduce conflicts of interest and ensure that players' best interests are always protected.
More competitive transfer market: the cap on agent fees will make the transfer market more competitive and help to prevent clubs from overpaying for players.
Increased protection for players: the requirement for agents to provide players with independent legal advice will help to protect players by broadening their panel of knowledge sources.
Representation agreements that expire on or after 1 October 2023, in force at the time at which the new FFAR are approved shall remain valid until they expire – however they may not be extended. Representation Agreements which do not include the minimum requirements set out at Article 12, paragraph 7 of the FFAR shall not remain valid after 1 October 2023, (even if they are currently in force). These minimum requirements include:
the names of the parties;
the duration (if applicable);
the amount of the service fee due to the football agent;
the nature of the football agent services to be provided; and
the parties’ signatures.
Any new representation agreements or renewals of existing representation agreements concluded after the approval of the FFAR shall be in compliance with the FFAR as from 1 October 2023.
The Agents Chamber of the Football Tribunal has jurisdiction to determine disputes:
arising out of, or in connection with, a representation agreement with an international dimension;
where a claim is lodged in accordance with the Procedural Rules Governing the Football Tribunal; and
where no more than two years have elapsed from the event giving rise to the dispute; the application of this time limit shall be examined ex officio in each case.
The jurisdiction of the Agents Chamber of the Football Tribunal is without prejudice to the right of a football agent or a client to seek redress before an ordinary court of law.
Overall, it is FIFA’s view that the new FIFA Football Agent Regulations are a positive step for the football industry. They are likely to make the transfer market more transparent, fair, and competitive, and to provide greater protection for players.
For further information,please contact Bandar Al Hamidani or Harry Taylor.
Published in October 2023
