FIFA Plans to Launch New ‘Cap' and Rules for Agents as Early as January
FIFA is set to proceed with new rules to cap commissions on transfer fees for agents. This, along with a licence scheme to regulate agents is scheduled to be in effect from the start of 2021.
FIFA is set to proceed with new rules to cap commissions on transfer fees for agents. The new rules are scheduled to be in effect from January 2021, despite opposition from some agents, football’s governing body said.
Last September, FIFA had announced a cap for commissions on transfers. According to their rules, 10 percent of the transfer fee would go to agents of the selling club and three percent of player’s fees to agents of the buying club.
The new regulations also include a licensing scheme which will require agents to undergo an exam organised by FIFA. The agents will also make public all transactions which will enable fans to see the amount they are paid on deals.
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A character test will also be involved in the process to becoming an agent and it will be mandatory for agents to have an annual fee along with continued education and relevant insurance. They will be banned from holding any kind of interest in a football club or a federation. It is designed to ensure agents cannot form close bonds with individuals within clubs or players themselves and therefore influence proceedings.
The new regulation has been deeply opposed by some leading agents and they have also threatened to take legal action.
FIFA has stated that it will begin its third and final ‘consulting process’ on the new regulations and will then submit the reforms to a vote at the FIFA council with the intention of bringing them into effect by next season.
The Chief Legal and Compliance Officer of FIFA, Emilio Garcia Silvero told reporters that while FIFA has been consulting with agents, it is determined to move forward with the changes.
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“If we can’t agree with the agents then we will move ahead. We are committed to this,” Silvero said. “This is not a project against the agents, this is a project for the agents, that is a very important message. We would like to work with them, they play a highly relevant role in football. There are hundreds and thousands who are operating in a proper way.”
Garcia Silvero also explained that there will be a new Football Agents Dispute Tribunal that will help agents who do not get paid for international deals.
“This is not a project against agents, those who see this (as) a project against agents, it is because they are hiding something,” he added. “There is a big group of agents who are also happy with the basic principles and we are all committed to reaching a final agreement and a consensus.”
FIFA also revealed that commissions paid to agents on international transfers have increased four times since 2015, with a record of $653.9 million recorded in 2019.
Under the new system, contracts for commissions will be required in writing in advance with the aim to end late claims for commission when a deal is closing.
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