Since 2018 FIFA have been considering new regulations After much consultation and debate, FIFA has pushed forward introducing the new rules that will come into full force on the 1 October 2023. FIFA’s hope is that the new rules will guarantee the minimum professional and ethical standards for the occupation of football agents, which will be largely reliant on a mandatory licensing system.
On the 1st April 2015, FIFA abandoned the licensing process in favour of intermediaries. Interestingly many leagues and associations opted in favour for a change, primarily in the belief that it will allow them easier access to players and getting deals completed. The reality was the opposite. The football agent industry became saturated. This was illustrated by the English FA, where there were more registered intermediaries than registered players. The global transfer market was full of non-qualified individuals and companies, many of whom had little knowledge of the regulations and how to conduct business, ethically and professionally. The truth is that both the clubs and the players suffered. There was little respect for the football agency industry, which in many cases was justified.
WHY HAVE FIFA INTRODUCED NEW REGULATIONS?
The new FIFA Football Agent Regulations (FFAR) are claimed to be a landmark step towards establishing a fairer and transparent transfer system. The new regulations introduce basic service standards for football agents and their clients, including a mandatory licensing system, prohibition of multiple representation to avoid conflicts of interest, and controversially to some, the introduction of a cap on agents’ fee.
The objective of these measures is to reinforce contract stability, protect the integrity of the transfer system and achieve greater financial transparency.
A CONTROVERSIAL CAP ON FEES
One of the most debated and controversial rule changes introduced by FIFA is the cap on commission. In 2022 fees paid by clubs for the services of intermediaries were $622.8 million, which marked a 24.3% increase in their spending on fees a year earlier (2021).
The new rule changes caps commissions to 3% of any transfer above $200k and 5% for deals under $200k. Commissions on transfer fees have also been limited to 10%. All transactions will be made public, making clubs, agents and players more accountable to the media and fans.
RETURN OF THE LICENSED AGENT
The new FFAR will see the return of the much-coveted, FIFA licensed agent. The mandatory licensing system will see those wanting to become agents will be required to sit and pass a FIFA exam, and pay an annual fee of $600 to the governing body.
Agents will also have to maintain their knowledge, by participating in compulsory ‘Continual Professional Development’ training, designed to keep representatives knowledgeable of the rules and business of football.
WHAT NEXT?
FIFA anticipates that the new regulations will see the demise of the Wild West in football. In 2015, they abandoned the agent licensing programme because FIFA couldn’t manage the global football agent industry efficiently. There was a claim that 75% of deals negotiated around the world were performed by unlicensed agents in 2014. Fast forward 8 years, and access to improved technology, the success of the Transfer Matching System (TMS), allowed FIFA the confidence that implementing new FFAR would work within all corners of the football community.
In reflection, it has been widely accepted that there needed to be a change.
Sprint MG welcomes the new FFAR regulations. Our belief is that it will help dramatically improve the reputation of the football agent industry, removing those intermediaries that have little knowledge or respect for the business. Ultimately, the licensing system will improve the quality of representation, whilst benefiting players, clubs, and agents looking to collaborate.
In short, it will help Sprint MG promote and develop our clients more professionally, delivering on our #FootballFirst promise.
HOW CAN I STUDY FOR THE FIFA AGENT EXAM?
The first FIFA Agent Exam will take place on 19 April 2023. Deadline to apply is 15 March 2023. A second exam will be held on 20 September 2023.
Managing Director, John Print has coached new agents looking to enter or develop into the agency business for over 10 years. The coaching will include group and one to one sessions, allowing you to fully prepare for the FIFA exam and beginning a career as a football / soccer agent.
If you are interested in receiving training for the FIFA Agent Exam, please complete the form below to register your interest, and to have an informal discussion with one of our team.
Alternatively please visit www.sportsagentresource.com to register.
