FIFA to introduce new agent regulations and limit their commission from transfers

November 06, 2020

FIFA to introduce new agent regulations and limit their commission from transfers

Next year FIFA are to introduce new regulations that will limit the commission that agents can receive from the transfer of players, the amount they earn will also be made public.

FIFA has said that the move to deregulate agents in 2015 was “a mistake” and that mistake has been one of the main reasons why FIFA are looking to introduce these new regulations which will ensure that commission is capped at 3% of a player's salary when representing a player, 3% of a player's salary when representing the buyer and 6% when the same agent represents both the player and the buyer. An agent representing a selling club can earn a maximum of 10% of the transfer value.

The regulations will also restrict conflicts of interest so that club or national association officials cannot own a stake in player agencies. FIFA will also publicise the amount of money that agents receive from transfers, both from player and club. Agents will also be unable to represent all three parties in a transfer so cannot represent the buyer, seller and player but can represent the buyer and the player. The final new regulation means that family members cannot represent players in transfer deals unless they are a licensed agent.

FIFA’s director of football regulatory James Kitching said “Many of the practices which we describe as excessive and abusive derive from the types of commission payments that we're describing right now. What we're trying to do is bring in basic service standards. I'm not saying large numbers automatically lead to abusive practices, but an agent who acts on your behalf has a fiduciary duty to act in your best interests. Sometimes big numbers may cause an agent to not act in the best interests of the client.”

FIFA found that half a billion pounds was spent on commission fees in 2019 and now wants these fees to go through a clearing system rather than being paid directly to the agent. Agents will receive a draft of the new regulations and be asked for their feedback before the regulations seek approval form the FIFA Council, if approval is granted they will come into force for the 2021/22 season.

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