FIFA has introduced some widespread changes regarding how agents operate. Let’s have a look at the main headlines…
Caps on Commissions
Firstly, FIFA has introduced a cap on agents’ fees, so let’s break it all down. Where an agent is representing a buyer club OR player (single representation), the maximum commission they can take on transfers above $200,000 (UK equivalent £161,624 at time of writing) is 3%, and the maximum commission on deals below this threshold is 5%.
If an agent is representing both the buyer club and player (dual representation), they can take up to 6% of the player’s renumeration, or up to 10% if their renumeration falls below the $200,000 threshold.
If an agent is representing the seller club, they can take up to 10% of the transfer fee.
Payments to agents will be issued through the new FIFA Clearing House.
The ‘Client Pays’ Principle
If their income is higher than the $200,000 threshold, players will now have to pay their own agent, rather than their club paying it on their behalf. This essentially means that high earning payers will have to pay more in expenses.
FIFA likely believes that this will lead to a natural reduction in commissions payable. However, a likely impact is that players will demand higher wages in order to help cover the cost of these extra expenses. This may in turn create more conflict between agents and players, and players and clubs.
Players can request their club to deduct their agents’ service fees directly from their income if they wish to, and this may make it easier to keep track of what they need to pay.
Increased Transparency
One of the new regulations is that agents must make all of these transactions public. FIFA now requires all representation contracts to be submitted to them and all payments to be processed through the Clearing House.
This means that FIFA will know who is getting paid and what amount they are being paid. Many of these details will likely also be published by FIFA so that they are publicly available in an aim to increase transparency.
Licensed Agents
Anyone who wishes to become a football agent must now pay an annual fee to FIFA and pass an exam to become licensed.
These regulations were implemented on 9th January 2023, but there will be a transitionary period until 1st October prior to the requirement to only use licensed football agents and the implementation of the cap on agents’ fees. This means that agents will have to pass an exam on the new regulations at some point before October this year.