FEBRUARY 2024 UPDATE ON THE CURRENT STANCE OF FIFA FOOTBALL AGENT REGULATIONS
The proposed FIFA Football Agent Regulations (FFAR), scheduled to take effect from October 2023, promised a new era for football agents worldwide. However, legal challenges from agents, particularly in countries like the UK and Germany, cast a shadow of uncertainty over these regulations, particularly concerning the proposed cap and how agents get paid.
After months of deliberation, the Football Association (FA) provided clarity on December 21, 2023, announcing that its revised Football Agent Regulations would supersede previous guidelines starting January 1, 2024. Yet, just as stakeholders prepared to adapt, FIFA issued Circular 1873 on December 30, 2023, suspending temporarily key aspects of the FFAR pending the outcome of a legal injunction in Germany.
The timing couldn’t have been worse for the football industry, coinciding with the opening of the transfer window on January 1. Amidst the confusion, stakeholders in the football sector grapple with understanding which rules are currently in force and which are suspended.
CURRENT SUSPENDED RULES (AS OF FEBRUARY 2024)
Restrictions on Multiple Representation: Agents can continue representing multiple parties with prior written consent, including clubs paying more than 50% of total service fees in dual representation arrangements.
The Client Pays: Clubs retain the ability to make payments on behalf of players or coaches.
Service Fee Cap: The service fee cap does not apply to English transactions or international transfers for the time being.
Other Service Payment Rules: Regulations governing service fee payments, including timing and the use of the FIFA clearing house, are on hold.
FIFA Platform: Presently, there’s no obligation to submit documents to the FIFA agents’ platform, and rules concerning disclosure and publication are not enforced.
RULES REMAINING IN PLACE
Licensing and Registration: Agents must hold a FIFA license for global services and be registered as FA agents for operations in England.
Coaches: Regulations apply to coaches and players alike.
Agencies: Corporate agencies can’t perform football agent services or register as agents. Representation agreements require involvement of a FIFA Licensed Agent and FA registered agent.
Minors: Strict rules regarding minors remain unchanged.
Representation Agreements: New rules regarding representation agreements include mandatory lodging through the FA portal and clauses limiting players’ ability to negotiate contracts without an agent being null and void.
Approaches: Agents are prohibited from approaching players, coaches, and clubs under exclusive representation agreements, except within the final two months of the contract.
UNCERTAINTY ON THE DURATION OF EXISTING RULES
FIFA cites the necessity of suspending regulations to comply with a preliminary injunction from the District Court of Dortmund. However, the duration of this suspension remains unclear, amidst legal challenges and varying implementations across different countries.
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