The scrapping of the old agent regulations in 2015 meant that the rapidly growing agent market was initially completely unregulated and then managed by the respective national federations – with mixed success. The industry is described as the Wild West and criminal forces made an entrance around the football pitches.
On 1 October last year, the International Football Association introduced new rules, the Fifa Football Agent Regulations (FFAR), which would create order and shut out rogue actors. But already on the penultimate day of the year, Fifa announced that large parts of the new order are being put on hold. Important areas of the FFAR have been challenged in court by representatives of the agent collective in a large number of countries, who believe that the new rules conflict with EU legislation.
Mikael Thorstensson, who trains in agent and match-fixing issues at the Swedish Football Association, says that although important sections of the new regulations, such as the requirement for an international license to work as an intermediary, have been put into use, there are others that cannot be applied. For example, the so-called fee ceiling, which regulates how much money an agent can earn from a deal.
– According to the new rules, an agent should only be able to take a fee that corresponded to five percent of a player’s annual salary (with a salary of no more than $200,000), but today I tell players that they can pay their agent as much as they want, says Thorstensson.
Mikael Thorstensson says that due to Fifa pausing parts of the agent regulations, the Swedish Football Association has no opportunity to report agents who, for example, broke the rule with the fee ceiling. Photo: Roger Turesson
Another area taken to court is conflicts of interest. Thorstensson mentions an example where a well-known agent represented all three parties in a big deal: player, buying and selling club. The new rules prescribe, with a few exceptions, that an agent may only represent one party, but this rule does not need to be followed at the present time either.
A third area relating to payment rules has also been excluded. Thorstensson explains that in the world of football it has become common for clubs to pay all agent fees and that Fifa wanted to control it so that the players have to bear their costs.
Fifa’s order means that the Swedish Football Association cannot currently start a penalty case against an agent who breaks rules in these three areas. Thorstensson says that the association still has reporting obligations and can exercise supervision by requesting agreements linked to a transfer.
– But if we are going to push cases on to our disciplinary board, it must be about violations of the rules that are not suspended, says Thorstensson.
If we are going to push cases on to our disciplinary committee, they must be about violations of the rules that are not suspended.
From the Swedish Football Association’s side, they think that the break is unfortunate and that there are many things in the regulations that would have been good if they could have been implemented immediately. Now it will be delayed. The EU’s Advocate General, who guides the Court of Justice of the EU, has announced that a ruling will come this spring at the earliest. The verdict is expected to be delayed until 2025.
The Swedish Football Association continues its work to educate players and associations about the rules that currently apply.
– Regardless of the regulations, it is our task to ensure that the agent market becomes more efficient. Which parts of the regulatory framework will return can only be speculated on, but the hope is still a regulatory framework that will help us to regulate the agent market in a better way and to protect our players and associations from unscrupulous or outright criminal actors, says Thorstensson.
Not everyone is sure that Fifa will emerge victorious from the battle.
Carl Fhager, business lawyer with, among other things, football issues as a specialty, believes that the controversial areas should never have been included in the regulations.
– Already when the proposals were out for consultation, they were met with outcry, above all from representatives of the agency companies. The agents said early on that if these proposals became reality they would attack them. Fifa went straight into the problems with open eyes and I think that was nonchalant, says Fhager, who has a past as sports director at BK Häcken.
Carl Fhager, lawyer at MAQS law firm in Gothenburg, says that it was obvious that Fifa’s new agent regulations would be challenged in court. Photo: Tomas Ohlsson
In step with football’s strong economic development, the agency profession has become attractive. In mid-February, there were 5,573 intermediaries registered with Fifa. Agents working on the Swedish market have also increased sharply. This has meant that knowledge of the regulations is variable and that the industry has had problems with criminals.
– Fifa’s approach to primarily protect players and parents is good, but when it comes to, for example, the fee ceiling, they went too far. The most important thing is to regulate and make sure that those who operate in the industry are decent and know their stuff, says Fhager.
Do you think it would have had just as good an effect if the controversial points were ignored?
– Yes, I don’t think the roof is the issue. There is a focus on agents making too much money, but it’s about the really big agent networks in the biggest markets. Most agents in smaller markets like Sweden cannot work full-time and live on it, but these rules hit them just as hard and when someone gets a reduction in compensation, that person will try to circumvent the regulations, says Fhager and believes that they already saw last autumn example of this.
Carl Fhager believes that all parties involved must return to the negotiating table in order to obtain a sustainable and long-term solution. Photo: Tomas Ohlsson
He admits that the issue is complex and believes that instead of waiting for the court ruling, all parties should go back to the negotiating table and agree on a long-term and sustainable solution.
– I don’t think fighting in court is the way forward. We need to raise the minimum level, so that the industry avoids agents who are linked to match-fixing and gang crime and players and parents who get into trouble. That would go a long way, says Fhager.
Fact. Fifa’s rules are being challenged in the EU court
Three main areas in the agent regulations FFAR to be decided by the EU Court of Justice.
Fee ceiling:
An agent may charge no more than five percent of the player’s annual salary if it is $200,000 or less. For a higher salary amount, three percent applies. An agent may only take ten percent of the transfer fee from the selling club.
Conflicts of interest:
An agent may no longer represent all parties, players, buying and selling clubs in a transfer. It is also not permitted to represent both the buying and selling club.
Payment rules:
A player is responsible for his own agent fees, not the club.
The three areas of the regulations have been paused by Fifa. The EU’s advocate general is expected to make his recommendation to the European Court of Justice in the spring. The verdict is not expected until 2025.
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2024-02-25 10:03:50
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