On 9 January 2023, FIFA introduced new regulations for Player Agents worldwide: the FIFA Football Agents Regulations (FFAR).
The FFAR are directed at more tightly controlling who can be a Player Agent, how they can conduct their business (including how much they can charge for Player Agency Services and how they are to be paid) and what terms they can include in a Representation Agreement with a client (player, coach, club).
The bulk of the regulations contained in the FFAR come into force on 1 October 2023.
In summary, the key changes are:
1. A person cannot operate as a Player Agent unless they are fully licensed in accordance with the FFAR.
2. A Player Agent's fees for providing Player Agent Services are capped (at a percentage of the client's annual remuneration) and must be paid by the client (not a third party), through the FIFA Payments Clearance House.
3. Ongoing continual professional development (CPD) training is mandatory for Player Agents, with additional training required for Player Agents who wish to provide Player Agent Services to minors.
In our view, FIFA's return to a licensing requirement for Player Agents is a big step in the right direction. In the years that FIFA didn't have a licensing requirement, the number of Player Agents (also known as Intermediaries) exploded and those Player Agents (including brand new Player Agents) were not required to have any formal qualification, relevant experience or skills or undertake any ongoing professional development.
We do not think it was in the game's best interests for anyone who wished to call themselves a 'Player Agent' to effectively have been able to do so. Under the FFAR, that will no longer be possible, which is good for players and the game as a whole.
One aspect where we believe FIFA can look to innovate further in the coming years is to move away from Player Agents being remunerated as a percentage of their client's annual remuneration and instead, being remunerated on a 'fee for service' model (akin to a fixed price service offering). We think that will serve to drive greater competition in the market to provide the best Player Agent Services (as well as consolidate the market by causing poor quality Player Agents to exit), while at the same time, enabling clients to retain more of their remuneration for themselves.