FIFA implements the FFAR and the Agents Chamber
Background
Despite the ongoing challenges to the FIFA Football Agent Regulations (the FFAR) in multiple jurisdictions, on 29 September 2023 FIFA confirmed that the FFAR would be “fully implemented” on 1 October 2023.
The significant caveat to that “full” implementation is that the FFAR will not be implemented in Germany due to the injunction granted by the Dortmund Regional Court. Transactions with a link to the German market will not be subject to the FFAR.
Further, although Germany is described by FIFA as the “only exception to the full implementation of the FFAR”, The FA recently announced that it is suspending the implementation of its National Football Agent Regulations pending the result of the English Challenge, and the French Football Federation has also indicated that it intends to continue operating its own football agent regulatory regime, rather than implement the FFAR.
FIFA’s press release (available here) goes on to state that:
“As part of the new regulations, potential disputes in connection with representation agreements entered into as from 1 October will be handled by the Agents Chamber of the Football Tribunal, thus ensuring that any conflicts concerning football agent services are resolved fairly and equally for all participants in the international transfer system.”
Comment
Although FIFA is keen to emphasise that the implementation of the FFAR is “full”, transactions in the English, French and German markets dominate spending on transfer fees in Europe. In circumstances where the FFAR will not apply to those transactions (or any transaction with a link to the German market), is seems somewhat strained to describe their implementation as “full”.
If the agencies who brought the English and German Challenges are ultimately successful, the size of the market for Football Agent Services in those jurisdictions is so significant that FIFA will likely have to revisit the most controversial aspects of the FFAR, such as the 3% cap on commission.
However, the Agents Chamber - and the dispute resolution forum it offers to agents, players and clubs in matters concerning licensed agents operating internationally - is uncontroversial and likely to be considered a positive step for both agents and those who deal with them. It is therefore likely to be unaffected by any future amendment to the FFAR brought about by the various legal challenges FIFA is facing.
If you have any questions about the FFAR or the Agents Chamber, please see our FAQ section or get in touch.