The topic of Sports Law is quite interesting and new for me. Since 2013, I have been involved in advising a company about certain transactions regarding the intermediation in the transfer of football players. These transactions fall under the scope of regulation of the Fédération Internationale de Football Association (FIFA).
New regulations on working with intermediaries replaced the FIFA Players’ Agents Regulations that have been so far regulating these activities within the transfer of football players. These new regulations introduce a new approach based on the concept of intermediaries and came into force on April 1st, 2015.
The immediate consequence is that now, individuals and companies wishing to conduct any intermediary activity as defined by FIFA Regulations, will be able to do so without being FIFA Registered Agents (in fact this register will no longer exist).
These changes have as key elements:
a) Transparency: full disclosure and publication of remuneration made to intermediaries as a result of transactions involving football players.
b) Protection of minors: non-payment of commission if the player concerned is a minor.
c) Payment of intermediary fees: the regulations recommend that fees to be paid to intermediaries are limited to 3% of the player’s gross basic income or value of the transfer and that there is full disclosure on these payments, identifying the intermediary, the paying entity and the percentage paid to the intermediary.
The new approach does not regulate the access to the activity. It provides a framework for tighter control and supervision of the transactions relating to transfer of football players in order to enhance transparency.
This approach includes:
1. a set of minimum standards to be introduced by the Football Associations of the FIFA Member Countries; and
2. a registration system for intermediaries who represent players and / or clubs in concluding: (i) employment contracts and (ii) transfer agreements.
3. the deposit before the association system of contracts concluded between intermediaries and players or clubs. This includes renegotiation of an employment contract.
Regarding the above points, the only Football Association that has so far included these new FIFA recommendations is the English. These changes will have retrospective effect, hence, any transaction involving English football players and / or clubs and the intermediary involved (regardless the nationality) will also have to be registered before the English Football Association.
In this sense, the registration system for intermediaries, as mentioned, will be open to individuals and companies. Individuals wishing to register a company as intermediary will have to register themselves first in order to have access to register the company.
Registration will involve the payment of fees and annual renewal (500 GBP + VAT registration fee and 250 GBP +VAT for the annual renewal, in the case of England). The English registration system is on-line on the following link: https://wholegame.thefa.com
In my opinion, foreseeable consequences of the implementation of these new FIFA recommendations by Member States Associations are not only the full disclosure of intermediaries’ details, remunerations, contracts, etc., but also the possibility that Football Associations will share with national Tax Authorities, following the worldwide trend on transparency.
SLR
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