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Fifa Report Agency fees to remain stable in 2021 despite drop in transfer spending

Agency fees remain stable in 2021 although transfer spending has fallen over the past two years, a new level FIFA Report found.

More than half a billion US dollars was spent on fees to intermediaries in 2021, up 0.7 per cent on 2020, with clubs from the UK spending just over £100 million on agents in transactions international – the most of any country.

The increase in agent fees comes despite spending on international transfers falling 13.9% in 2021 compared to 2020 and down 23.4% in 2020 compared to 2019 as clubs tighten their belts. during the coronavirus pandemic.

Even so, the amount available to agents has dropped significantly compared to 2019, when FIFA found US$653.9 million (more than £500 million at the time) had been paid out.

The report is published just over a week after the third and final draft of the proposed new regulations governing dealers was sent to interested parties. The consultation process runs until January 21 and it is expected that the final regulations will be adopted by the FIFA Council in the first quarter of 2022.

Most controversially, the limit on agency fees remains in place but now includes all service fees instead of just commissions. The limit is three percent of a player’s gross contractual salary when representing a player, three percent of that salary when representing a buyer, and six percent of that salary when representing represent players and buyers.

An agent representing a selling club can earn up to a 10% transfer fee. Payments to agents will be released through the new FIFA Clearing House.

Triple representation – which represents players, buyers and sellers, is prohibited in the new regulations and so is double representation, except in the case of players and club representatives buy set.

The proposed regulations have been criticized by some of the highest-ranking agents in the world, such as Mino Raiola and Jonathan Barnett with the latter warning, FIFA could face legal action and say there had not been adequate consultation.

Special Agent Jonathan Barnett Criticized FIFA’s Proposed Regulations (Mike Egerton/PA)

(PA Archive)

FIFA’s director of legal and compliance Emilio Garcia Silvero is confident that the regulations are legally robust and added: “We know there are certain groups of agents who have some reservations.

“It’s hard to say we’re not talking to agents when they won’t talk to us. Two or three organizations are part of the process. Others like to be excluded and don’t want to interact.”

FIFA says its intention in announcing the fees paid to agents is not to make supporters or anyone else angry with money flowing out of the game, but to provide transparent.

It believes new regulations are needed to prevent excessive and abusive practices. Garcia Silvero gave the example of a former player he spoke to recently, who moved to South America from Europe, who said his agent made more money than he had in his contract. two-year copper.

FIFA’s director of football management, James Kitching, cites another example of a player moving from France to Germany in 2018, where the agent’s fee amounted to 111.8% of the player’s salary during his tenure. their contract period.

In more than 90% of cases, it is reported that club brokers receive less than a million US dollars in service fees per transaction, with 10,000 to 100,000 US dollars being the most common amount received.

However, there were 117 cases where the service fee exceeded one million US dollars, representing about two thirds (64.2%) of the total amount paid by the clubs to the middle man, with some cases the service fee. service even exceeds 10 million US dollars.

Garcia Silvero said FIFA wants to make as much information about the transfer public as possible, but will be limited by data protection laws.

He also said he hoped the new system would address the “imbalance” between agent fees and the costs of training and compensation for clubs. While the former was more than half a billion dollars, Garcia Silvero put the second figure between 50 and 60 million dollars.

“It made us feel uncomfortable. We cannot accept this imbalance,” he said. “That’s one of the key things we want to change with agency legislation.”

https://www.independent.co.uk/sport/football/fifa-england-jonathan-barnett-south-america-europe-b1976871.html Fifa Report Agency fees to remain stable in 2021 despite drop in transfer spending

JACLYN DIAZ

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