FIFA regulations on Football Agents, after being approved by the FIFA Council in December 2022, the new FIFA Agent Regulations (FFAR) has been announced on Monday 9 January 2023. This is an important step towards a fairer and more transparent transfer system in the football world.

This FIFA regulations on Football Agents establishes minimum standards for the role of agents and services provided to clients, including the creation of a mandatory licensing system, prohibition of multiple representatives to avoid conflicts of interest, and caps on agent fees. All of these clauses aim to increase contract stability, protect the integrity of the remittance system, and increase financial transparency.

This blog provides a clear and comprehensive guide for all agents who need to learn about implementing the new FFAR FIFA Agent Regulations. It is absolutely imperative that agencies fully understand how the new regulations will affect them and how to comply to avoid legal and other issues throughout their careers.

WHAT’S CHANGED (In FIFA regulations on Football Agents)?

FIFA has a statutory obligation to regulate all matters relating to the football transfer system. The core objectives of the football transfer system (FIFA Agent Regulations) are to:

• Protect The Contractual Stability Between Professional Players And Clubs;
• Encourage The Training Of Young Players;
• Promote A Spirit Of Solidarity Between Elite And Grassroots Football;
• Protect Minors;
• Maintain Competitive Balance;
• Ensure The Regularity Of Sporting Competitions

For this, the FIFA has enter into the new implementation of FIFA regulations on Football Agents” and announced many decisions about :

LICENSING AND THE EXAM

That are the steps that must be required for a candidate to obtain a football agent license to operate his services legally. These core steps are as follows:

1- Have the following requirements:

A licensing application must first be submitted through the FIFA or National Association platform. This procedure includes a section outlining the qualifications a candidate must meet. This covers specifics like having a spotless criminal background and other “proper people tests.”

NOTE: These rules must continue to be followed for the duration of the person’s employment as an agent. The license of a football agent will be revoked if this is not done.

Below are some eligibility requirements:

• No false or misleading statements within the candidate’s application.
• Zero criminal charges and convictions regarding all matters.
• Must not be a recipient of a suspension, disqualification, or striking-off order by a sporting governing body or regulatory authority.
• No record of failure to comply with rules relating to ethics and professional conduct.
• Must not be an official or employee of FIFA, a confederation, National Association, League, Club or anybody that represents the interests of clubs. (The only exception to this is where an applicant has been appointed or elected to a body of one of these entities in a capacity of representing the interests of FIFA regulations on Football Agents).
• Must not hold any interest in a club, academy or league.
• Must not have been performing the services of a football agent license without a license prior to submitting their application.
• Must never have been personally bankrupt or been a majority shareholder in a business that declared bankruptcy, entered administration or undergone liquidation.
• Must not have been a part of a sports betting company or organization in the year preceding the application.

2- Passing the exam:

According to FIFA’s new rules “FIFA Agent Regulations”, candidates for agency licenses must pass the test in its revised format. The test will be open-book, but it will only be offered in English, Spanish, and French, the three main languages used in football. The following is a summary of the agent exam’s essential information:

Candidates whose eligibility has been verified will be invited to pass the test at the location designated by their National Association.
The exam may require candidates to pay a fee.
The timing and frequency of the exams for applicants will be determined by FIFA. There will be two a year, in March and September, as of right now. The first exam will be administered on April 19, 2023. The 15th will be the deadline for applications for this.

The questions will be based upon FIFA legislation only rather than specific national association laws. The six key documents that will be covered are as follows:

• FIFA’s agent regulations:
• Regulations of the Status and Transfer of Players (RSTP):
• FIFA Statutes  FIFA Code of Ethics:
• FIFA Disciplinary Code (FDC)
• FIFA Guardians – Child Safeguarding Toolkit

3- Paying the licensing fee:

FIFA will receive this amount instead of a national association. FIFA therefore sets the cost in a uniform and standardized manner (this has not been specified as yet). A candidate’s status as a football agent will be void if the annual licensing cost is not paid, or they will not be issued a license in the first place.

4- Receiving the license:

The ability to provide football agent services is granted by this. Then, as long as the applicant continues to satisfy the requirements for eligibility and the annual fees, this will stay in effect. FIFA is also implementing a Continuing Professional Development (CPD) education system rather than the new FIFA Agent Regulations that will force agents to yearly prove that they are upgrading and maintaining their level of knowledge of pertinent regulations in order to keep their licenses in good standing.

CAPS ON AGENT FEES VIA FIFA LEARING HOUSE

As part of the new regulations “FIFA Agent Regulations”, FIFA has installed commission caps, primarily to keep as much money as possible in the game. The hard commission restrictions implemented by FIFA for football agent services in a single transaction are as follows:

1. Individual refers to the agent acting on behalf of the player (the individual) as the client. If the player’s annual remuneration is above $200,000 (or the same amount in another currency), the agent is entitled to 3% of this figure. If it is below $200,000, the agent is entitled to 5%.
2. The engaging entity simply means the ‘buying club’. If the player’s annual salary is above $200,000, the agent is entitled to 3% of this figure from the buying club; or 5% if it is below $200,000.
3. If prior written consent has been given by each party, and the agent represents both the player and the buying club (the only permitted form of multiple representation) the commission percentage is doubled. If the player earns less than $200,000 annually, the agent is entitled to 10% of this, 5% from the player and 5% from the club. If the salary is over $200,000, the agent is entitled to 6% (3% from the buying club, 3% from the player).
4. Finally, if the football agent represents the selling club (releasing entity) as their client, they will be entitled to 10% of the player’s annual salary, regardless of whether it is above $200,000 or not.

MULTIPLE REPRESENTATION

MULTIPLE In order to resolve conflicts of interest and other moral and legal concerns that the practice has previously raised, the FFAR “FIFA Agent Regulations” includes a section on multiple representation. The following are the modifications made by FIFA:

A single party should be the sole one for whom an intermediary provides services.

The following conditions must be satisfied in order for the agent to be legally permitted to represent both the individual player and the engaging club:

• An intermediary should only perform his/her services on behalf of one party. There is only ONE exception to this rule
• The agent can legally act on behalf of the individual player and the engaging club ONLY if the following criteria is met
• Both parties are made aware of the conflict of interest that will arise as a result.
• The details of both contracts, including the terms of service and the terms of remuneration are fully disclosed to each party.
• Both parties have the right to seek independent legal advice on the matter.
• The player must have a pre-existing representation contract with the agent, lodged with the National Association.
• This means that the agent is not entitled to simultaneously represent the buying club and the selling club; the selling club and the player; nor ALL THREE PARTIES.

Agents and clubs should be aware of all the changes so they are properly prepared, even if the new laws “FIFA Agent Regulations“ are still the subject of legal challenges from agents’ groups and won’t go into effect until October 2023 at the earliest. It is especially important for all agents to be fully up to speed because the majority of them will need to take an exam on the new regulations at some point over the next nine months. This will help to ensure that there are no issues with getting a license before the majority of the regulations go into effect.

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