In professional sports such as football, it is imperative that players who employ an agent have a signed contract in place. It is their responsibility to obtain a copy of the contract that has been duly signed and dated. In the event that players enter into a contractual agreement with an agent, the agent is obligated to exclusively represent the player and safeguard their interests throughout any negotiation and it is important to note that the agent may not also represent the club. In this article, Agent Player Contract (Representation Contracts), we take a look at the mechanism and process involved.
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What are the legal requirements of an Agent Player Contract?
In order to engage in football agent services on behalf of a client, such as a manager, player, or club, the agent must first establish a written representation agreement with said client.
It is understood that representation contracts executed prior to December 16, 2022 will continue to be legally enforceable until their expiration. Furthermore, it is not applicable to these contracts any modifications to the regulations that may apply at the time of the transaction. However, beginning on 1 October 2023, any new representation contracts or renewals of existing representation agreements entered into after 16 December 2022 must adhere to the revised regulations.
In order to prevent potential sanctions, contractual terms may need to be modified as appropriate. As an illustration, the regulations stipulate that representation contracts for the provision of services can only be entered into by individuals and not agencies. Therefore, although an agent may conduct business via an agency, the practice of naming representation contracts in the agency’s name will no longer be acceptable. Likewise, FIFA shall deny any commission claim that exceeds the applicable service fee cap, regardless of whether the claim is grounded in a representation contract finalised between December 16, 2022 and September 30, 2023.
As a result, agents are obligated to consider the newly implemented regulations when finalising representation contracts in the future and to assess the compliance of agreements reached subsequent to December 16, 2022.
What are the keys points that should be included in the contract?
A written representation agreement must include the following:
- Names of the parties involved
- The duration of the contract
- The commission amount owed to the agent;
- The exact nature of the services being provided
- The signatures of the participants.
Furthermore, it is mandatory for all agents to fulfil the following requirements prior to entering into a representation agreement with a coach or player:
- provide written notice to the individual that they are contemplating seeking independent legal advice regarding the representation contract;
- obtain written confirmation from the individual that they have indeed sought or opted not to seek such independent legal advice.
Agreements for representation shall be legally binding for a maximum of two years. Any provision that purports to extend the tenure of the representation contract beyond the maximum period, including automatic renewal provisions, shall be deemed void. Maximum duration restrictions will not apply to agreements reached between clubs and agents.
Any stipulations that restrict or penalise an individual (such as a coach or player) for independently negotiating and finalising an employment contract without the presence of an agent shall be deemed void and not enforceable. This provision seems to eliminate the requirement for an agent to receive payment of a fee if a client represents himself. This is a significant development for agents, as it has been customary to include in representation contracts that a commission remains due if a party negotiates a contract independently without the agent’s participation.
At any given time, an agent is restricted to entering into a single representation contract with a single individual. Nevertheless, clubs and agents are permitted to enter into multiple representation contracts, so long as they pertain to distinct transactions.
Can the contract be terminated before the end of its contractual term?
The regulations ultimately provide for the termination of a representation contract by either party upon just cause. The term “Just Cause” is defined in a rather ambiguous manner as “when a party can no longer be reasonably expected to maintain the contractual relationship in accordance with the principle of good faith.” This includes, but is not limited to, circumstances in which the agent’s licence has been revoked or suspended. Potentially, this change will result in a rise in the amount of disputes and issues.
To begin with, the expansive and imprecise definition of “Just Cause” might result in an increased number of athletes seeking to terminate their representation contracts with agents, particularly if other agents are pursuing them. Furthermore, in the event of a regulatory breach, the ability for a player to terminate their representation contract in the event that an agent’s licence is suspended or withdrawn creates a substantial liability for agents.
Many agents have been suspended under the previous regulatory regime; however, it was unlikely that players would be able to terminate their representation contracts during these suspensions, provided they were either temporary in nature or implemented beyond the transfer window. However, as a result of the new regulations, players appear to have the ability to terminate their representation contracts at any time, regardless of how brief or when the suspension begins, which places an enormous burden on agents to adhere to the rules precisely.
Can an agent represent multiple parties in a transaction?
A representative may only represent one client in a transaction under the new regulations; however, they will be allowed to represent both a player and an engaging club. As a consequence, agents are no longer authorised to represent all three parties involved in a single transaction, such as the player, the releasing club, and the engaging club, or the player and the releasing club. In addition, these restrictions cannot be circumvented by employing additional agents who are employees of the same agency or by arranging formal or informal services provisioning between distinct agents.
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We have a proven track record of helping clients deal with the process involved in agent player contracts. We will guide you diligently and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting. You can read more about the range of sports law services we offer by clicking here: https://blackstonesolicitorsltd.co.uk/sports-law/
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It is important for you to be well informed about the issues and possible implications of dealing with an agent player contract. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
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Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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