AGENT DISPUTES
Since FIFA’s deregulation of agents in April 2015, the number of disputes between players and their intermediaries has continually increased.
Matthew Buck, Director of Player Management at the PFA, “We have found that many of the issues arise from the player not having a full understanding of the obligatory regulations set out by The FA. For example, players tend to be unaware that a representational term of two years is the maximum allowed by the regulations but there is no minimum requirement.
“Therefore, the PFA would recommend that any player entering into an agreement with a new intermediary, whom they may have not had any previous working relationship with, may be best advised to sign an agreement on an initial shorter term, i.e. three to six months, or, if the term of the contract is for a longer period, include a clause which allows the Player to terminate after the first few months if things aren’t working out.
“In all circumstances, any PFA member entering into a legally binding representation agreement would be best advised to get professional, independent legal advice prior to signing.”
The PFA’s legal partners Centrefield offer expert advice for players in relation to intermediaries and set out below their advice on what you should consider before signing with an intermediary and if you find yourself in a position where your relationship with your intermediary has broken down.
Introduction
Finding the right representation is an important part of your career. There are, however, times that the relationship between a player and an intermediary can break down. If the relationship has deteriorated to the point that one party wants to terminate the representation contract, this is what you need to consider …
PROTECT YOUR POSITION
It is important that you protect yourself as much as possible at the outset of your relationship with an intermediary. You should seek independent advice in relation to your representation contract to ensure that it does not contain any unfair clauses. For example, it is common for a representation contract to provide that an intermediary is still due payment even when they have not acted on a deal.
Remember that you are the principal in any relationship with an intermediary and you do not have to accept the contract put in front of you.
REASONS FOR TERMINATION
The most common reasons for a player/intermediary relationship to break down are:
- Lack of faith in the intermediary’s abilities
- Lack of contact from the intermediary
- The intermediary not acting in your best interests
To constitute legitimate reasons for termination they must be deemed a ‘material breach’ of the representation contract. It is likely that a breach will be deemed material where it is central to the performance of the contract, e.g. the intermediary failing to inform you of offers that have been received from clubs or stalling negotiations to try and obtain higher commission for themselves.
THIRD PARTY INTERFERENCE
It is increasingly common for relations between players and intermediaries to break down due to the influence of a third party. For example, another intermediary who may have approached you to sign a representation contract with them.
It is likely that your current representation contract is exclusive – meaning that if you sign another contract with another intermediary you will be in breach. If you don’t have a valid reason for terminating your contract then you are likely to be sued for breach of contract. The former intermediary may also sue the new intermediary for inducing your breach of contract.
The new intermediary may try to reassure you that they will take care of your former intermediary and that signing a new contract with them will not cause you any problems. They may also suggest that you ‘represent yourself’ until the end of your representation contract, which will mean your current intermediary has no right to payment. This is not always the case and you should be extremely careful and seek independent advice if this is proposed to you.
RESOLVING THE DISPUTE
If you have concerns about your relationship with your intermediary we would advise that you seek legal advice as soon as possible, particularly if you are contemplating the termination of your representation contract. Resolving a dispute with a former intermediary can be a stressful and costly experience and it is vital to get advice at the earliest possible stage.
In some circumstances, if you approach the intermediary, they may understand your concerns and offer to mutually terminate the representation contract. If, after speaking to your intermediary, you still wish to terminate your representation contract and the intermediary is not willing to end the relationship amicably, then the question of whether the termination is valid will be resolved by the procedure set out in the Representation Contract; arbitration under Rule K of The FA Rules.
Arbitration is a similar procedure to a civil claim in court – you will provide witness statements and attend a hearing, which will determine whether the representation was lawfully terminated. The process usually takes 6-12 months and can be costly in terms of legal fees. Should you lose, not only are you likely to have to pay damages to the former intermediary, you may also be liable to pay some or all of their legal costs.
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