Thursday, May 26

The FIFA rule that can turn the transfer market upside down

Sand the pulse of the Superliga among the main agents of the soccer planet, a new one is coming that will bring a tail in the wake of the new law that FIFA wants to put into effect as of July 1, 2022. It is, broadly speaking, to prevent agents, lawyers, family members or whoever acts as representative of the athlete, charge millionaire amounts for transfers. About the new rule already there is a draft which is sufficiently clear about the spirit of it and, although it still remains to be drafted in a definitive way, the great agents, with the Haaland to the head, Mino Raiola, have formed a common front because they consider its legality more than doubtful based on community law and it is more than likely that they will present a class action lawsuit if it goes into effect.

How commissions work now

Today, there is no tax law on the commissions of the agents. FIFA’s recommendation is that they do not exceed 3%. That is a utopia right now and in the last season the amounts for commissions exceed 450 million. The FIFA report only talks about amounts, but the English Federation it is more rigorous in that sense and in its report it also details who the commission agents are. It is true that since FIFA disengaged in 2015 the agents of the nominated group Football Family and will let each Federation manage this matter, excessive control over this market has been lost because it is outside the legal framework of FIFA, which has introduced an endless number of external agents in the operations between lawyer, relatives, financial agents etc. The highest football body is not competent right now between conflicts between players and clubs.

Jonathan Barnett and Mino Raiola talk about their stars

FIFA as manager of commission collections

To regain greater control, the new rule, which began to take shape as a result of commissions such as Raiola’s own, of 48 million, for the Pogba handover from Juventus to United for 105 million euros, aims to reintroduce the broker or agent into the Football Family and create a new organism, Clearing House, who will be the one who manages all the payments. Clubs will pay the commission to FIFA and this body will make the transfers to the representatives, acting as a kind of collections manager. Payments will no longer go from club to agent but all go through FIFA to ensure that commissions do not exceed that 6%. Y there will be a control of those contracts to see if they conform to the new standard. Another change in the new rule has to do with contracts between a player and an agent, which it takes two to three years.

The point of the normal of greatest conflict

But where the agents have serious doubts is in the point of the norm that will establish limits on agent commissions. As a more practical case, does it make sense that Raiola, who will be able to move a player like Haaland who would collect 20 million (about 11 clean) in a five-year contract only 6 million commissions?. With the new rule it would be like this, since the agent could only charge 3% on the player’s salary, that would be borne by the footballer himself, and another 3% to be paid by the buyer’s club. The other option, which forces you to discard the first two and which in this case would be much more advantageous, is charge 10% of the transfer from the selling club. Therefore, the agent can only benefit from one of these two options. If, in addition, you take a player to a club and charge 6%, you cannot collect the commission from the same club during the next two transfer markets if you decide to sell the player.

A rule against community law according to the agents

If the agents come together to defend their rights, the steps to follow do not differ much in principle from the one followed by the famous Superliga. The normal thing is that the claim is filed in a court in a country of the European Union and that the magistrate raised a preliminary question before the TWENTY to determine if the rule goes against the law of free market and free movement of capital and services. Definitely, if it is contrary to the Treaty on the Functioning of the European Union.

The immediate effect of the future standard

The question is whether this new norm can revolutionize the market right now, in this next winter market, when said FIFA article is not in force. Again as a more practical case, that of Earling Haaland, who will leave Dortmund at the end of the season. Yes Raiola, one of the most galactic agents, wants to collect his commission, he should sign a contract before July 1. Either to go out in the winter market or to sign it throughout this season so that it leaves the same June 31. A new conflict is looming in football. And it has only just begun.

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