The Court of Arbitration for Sport (CAS) has ruled that the FIFA Football Agent Regulations (FFAR) are valid and legal within the EU law framework. The regulations will be enforced on 1 October 2023.
The decision by CAS has been warmly welcomed by FIFA as they seek to reform football’s transfer system. The Professional Football Agents Association (PROFAA) opposed the new regulations primarily due to the implementation of a fee cap on Licensed FIFA agents delivering football agent services, and the introduction of an examination.
WHAT ARE FOOTBALL AGENT SERVICE CAP FEES?
The new FFAR will enforce a percentage cap on the amount a football agent can earn when delivering football agent services. The service fee caps are set at 5% commission for the first $200k of a player’s / coach’s earnings and 3% for earnings over $300k contract value.
Dual representation has been banned. Therefore, a football Agent is unable to represent both the selling club (releasing entity) and the player in a transaction. A football agent, with written permission, can represent both the player and buying club (engaging entity), increasing the potential service fee to 10% for the first $200k of a player/coach’s earnings, and 6% for any contract values over $300k. Agents can also work for the selling club, and receive up to 10% of any transfer fee.
THE FIFA AGENT EXAM 2.0
The other significant regulation change is the re-introduction of the FIFA Football Agent Exam. When FIFA moved to intermediaries and effectively deregulated the football agent industry, the football agency market was opened to virtually anyone that had a relationship with a player or a club. Now to work as a football agent, individuals will need to meet specific eligibility requirements, pass an hour-long exam on FIFA regulations on agents, transfers, and statutes, as well as complete continual professional development (CPD) courses throughout the year.
The first FFAR Football Agent exam was hosted in April 2023. 3800 candidates participated in the exam with 52% passed. The final examination before FFAR is introduced is set for 20 September. It’s anticipated that a similar number of candidates will successfully pass the examination with the number of actives agents (former intermediaries) dropping by up to 75%. This figure may appear extreme, but at one point the English FA had more registered intermediaries than registered players. Deregulation meant that the global football agent industry was full of unknowledgeable and unqualified intermediaries. The intermediary experiment failed players and clubs and never aligned with FIFA’s key objective of maintaining contract stability in the international transfer market.
END OF FOOTBALL’S WILD WEST?
A change was obviously needed, and FIFA have been bold to admit their intermediary regulations were not working. The resistance to change back to Licensed Football Agents has been very vocal. Football Agent representative bodies like the PROFAA, strongly believe the new regulations violated EU competition law. This claim has been completely dismissed by CAS and the new regulations will be introduced on 1 October 2023.
The ruling by CAS is the first in-depth legal analysis of the FFAR, and their approval by an independent panel of renowned experts is a major step in delivering a more transparent transfer market to benefit players, clubs, and agents. FIFA will anticipate future challenges to the FFAR, but the approval of CAS is a major boost of confidence that the regulations will be successfully implemented.
BECOME A FOOTBALL AGENT – BE PART OF THE GAME
SMG and the Sports Agent Resource fully support the implementation of the new FIFA Football Agent regulations. SMG has a team of FIFA Licensed Football Agents ready to develop careers of existing and new clients.
If you are a player that’s looking for representation, please connect. We are happy to give you advice on how to develop your career.
If you are looking to sit the FIFA Football Agent Exam, the Sports Agent Resource offers interactive training on the implementation of the regulation and tips to gain the Football Agent Licence.
If you are interested in an informal chat on becoming a football agent and becoming ‘part of the game, please contact FIFA Licensed Football Agent:
John Print of SMG and the Sports Agent Resource on +44 (0)20 8152 7665 (Phone / WhatsApp) for an informal conversation.