The Regulation of European Sports Agents

Question 1

Why has sports agents emerged?

Answer 1

The fact that players through free agency have been given the opportunity to negotiate employment terms and salary with management has led to an increased demand for professional assistance in contract negotiations.

Question 2

Why do agents have a tarnished reputation?

Answer 2

Many agents have been involved in fraud or mishandling of funds, charging excessive fees or neglecting obvious conflicts or interest.

Question 3

Who is able to negotiate player salaries in the US?

Answer 3

The ability of player agents to negotiate player salaries is under the sovereignty of the unions, cf. H.A. Artists case.

Question 4

What requirements apply in the major leagues in relation to agents?

Answer 4

1. The agent must be registered or certified with the union. Disclosure of information concerning educational, professional and employment background must be given. No demand for a law degree.
2. Payment of a registration for of $ 1.000-1.500
3. Applicants must attend an annual seminar and pass an examination.
4. Certification is not guaranteed if the applicant has made false or misleading statements, has misappropriated funds etc.

Question 5

What is the code of conduct?

Answer 5

A standard code prohibiting agents from certain activities, eg. providing monetary inducement to encourage a player to utilise the agents services; soliciting or accepting money or anything or value from any team and in circumstances where to do so would create a conflict.
Agents must also use pertinent standard player/agent contracts.

Question 6

What rules does NCAA have on agents?

Answer 6

NCAA has its own set of rules governing agent conduct and the recruitment of student-athletes.
A student athlete risks losing his or her eligibility by doing anymore than talking with an agent.
NCAA could not prohibit a student-athlete from merely speaking with an agent.

Question 7

Did the NCAA recognise legal counseling?

Answer 7

Yes, the NCAA did recognise the rights of the individual to competent legal counsel giving an attorney the right to renew a proposed player contract.

Question 8

Has the NCAA rules proven to be sufficient?

Answer 8

No, they have not combatted agent interference or abuse, since the NCAA’s power only reach as far as its own schools.

Question 9

Explain the UAAA

Answer 9

The UAAA is an act across the US, designed to combat agents practises that pose harm to student athletes and universities.
Student athletes engaging in improper contract with agent may thus be denied the right to play college sports.

Question 10

What does the UAAA prohibit athlete agents from?

Answer 10

1. Lying or making false promises
2. Giving the student athletes anything or value
3. Altering the date of an agency contract
4. Failing to inform the student athlete entering into an agency contract that is forfeits his or her college eligibility.

Moreover, agency contracts are required to contain information regarding the type of fees that sports agents will charge the student athlete.

Question 11

Who is protected under the UAAA?

Answer 11

The student athlete.

Question 12

Explain the Sparta Rules

Answer 12

A conduct prohibiting the same as the UAAA.

The difference is that it is a federal regulatory initiative.

Question 13

What if an agent in the US is also an attorney?

Answer 13

If also being an attorney or a member of the American Bar Association, his or her actions will probably be governed by the American Bar Associations model rule of professional conduct.
The US Model rules prescribe standards for conducts for licensed attorneys in the areas or solicitation, advertising, fees etc.

Question 14

What is the job of a sports agent?

Answer 14

To act as an intermediary between athletes and clubs as they bring together the parties interested in concluding an agreement concerning the practise of a sport.

Question 15

Describe the FIFA’s Players’ Agent Regulations (2008)?

Answer 15

It was the previous ruleset that regulated access to agent activity. It was similar to the US system: players agents required a license.
However, studies showed that only 25 to 30 per cent of all international transfers were conducted via licensed agents. Furthermore, commission levels ranged between 10 and 20%. Therefore, the regulations are now changed.

Question 16

Explain the FIFA’s Regulations on Working with Intermediaries

Answer 16

The new regulations came into force in 2015.
It does not regulate access to the activity but provide a framework for tighter control and supervision of the transactions relating to transfer of football players.

Question 17

What is the main goal of the new FIFA Regulations?

Answer 17

Transparency: Full disclosure and publication of the remuneration and payments made to intermediaries as a result of transactions that they are involved in (for international transfers, further details must be inserted into FIFA’s Transfer Matching System)
Payment of intermediary fees: identifying which entity (clubs or players) are responsible for paying intermediary fees and what percentage intermediaries are paid
Conflicts of interest: proper disclosure if any conflicts of interest by all parties involved
Protection of minors: non-payment of commission if the player concerned is a minor

Question 18

What is an intermediary?

Answer 18

A natural or legal person who, for a fee or free of charge, represents players and/or clubs in negotiations with a view to concluding an employment contract or represents clubs in negotiations with a view to concluding a transfer agreement.

Question 19

What is the differences between intermediaries and player agents?

Answer 19

No longer required to hold licenses/pass multiple choice exam + obtain professional indemnity insurance
Legal persons can act as intermediaries – previously licensed players’ agents could only be natural persons;
Also applies to intermediaries offering agency services free of charge, whilst the previous Regulations were only applicable when a fee was paid;
Broader definition of the core activity of the intermediary, i.e. ‘representing’ players and/or clubs in their legal instead of simply ‘introducing’ the contracting parties to one another
Intermediaries must still have an impeccable reputation and may not hold a position as an official (Articles 2(4) and 4(1).

Question 20

What are the requirements in order to be registred as in intermediary?

Answer 20

• impeccable reputation.
  The individuals representing the legal entity within the scope of the transaction in question have an impeccable reputation.
  Associations must also be satisfied that in carrying out his activities, the intermediary contracted by a club and/or a player has no contractual relationship with leagues, associations, confederations or FIFA that could lead to a potential conflict of interest.

Question 21

How is the payment to an intermediary calculated?

Answer 21

The amount of remuneration due to an intermediary who has been engaged to act on a player’s behalf shall be calculated on the basis of the player’s basic gross income for the entire duration of the contract.
The total amount of remuneration per transaction due to intermediaries who have been engaged to act on a player’s behalf should not exceed three per cent (3%)

Question 22

What if the player is a minor?

Answer 22

Players and/or clubs that engage the services of an intermediary when negotiating an employment contract and/or a transfer agreement are prohibited from making any payments to such intermediary if the player concerned is a minor.

Question 23

What sanctions applies in relation to intermediaries?

Answer 23

Associations are responsible for the imposition of sanctions on any party under their jurisdiction that violates the provisions of these Regulations, their statutes or regulations.

Question 24

How is conflict of interests secured in relation to intermediaries?

Answer 24

Prior to engaging the services of an intermediary, players and/or clubs shall use reasonable endeavours to ensure that no conflicts of interest exist or are likely to exist either for the players and/or clubs or for the intermediaries.
No conflict of interest would be deemed to exist if the intermediary discloses in writing any actual or potential conflict of interest he might have with one of the other parties involved in the matter, in relation to a transaction, representation contract or shared interests, and if he obtains the express written consent of all the other parties involved prior to the start of the relevant negotiations.
If a player any a club wish to engage the services of the same intermediary within the scope of the same transaction under the conditions established in paragraph 2 above, the player and the club concerned shall give their express written consent prior to the start of the relevant negotiations, and shall confirm in writing which party (player and/or club) will remunerate the intermediary.

Question 25

What concerns can be stated in relation to protection of minors?

Answer 25

That there are no provisions on maximum contract period => allows agents to sign minors on a long-term contract to ensure that they have the player tied down after their eighteenth birthday, at which time the agent can receive remuneration from the player.