Everything you need to know about the remuneration of sports agents in France: legal framework and regulations

The fees of sports agents in France: a supervised sector

In 2022—23, football sports agents received a total of 152 million euros in fees, according to the National Directorate of Management Control (DNCG) of the LFP. While this amount is impressive, it is strictly regulated by law. Since the 1992 “Bredin” law, the legal framework governing the profession of sports agent has continued to evolve, in particular with:

• The “Buffet” Act of 6 July 2000 establishing a sports agent's license,
• The law of 9 June 2010 strengthening sanctions in case of illegal exercise.

Today, the articles L. 222-5 to L. 222-17 of the Sports Code regulate the profession and in particular the remuneration of sports agents. This article provides an overview of the rules in force:

• Scope of remuneration (I.)
• Persons entitled to remuneration (II.)
• Pay cap (III.)
• Payment of remuneration (IV.)

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I. Scope of remuneration for sports agents

A. The contracts concerned

The article L. 222-7 of the Sports Code defines the activity of sports agent as the bringing together of the parties to a contract related to the exercise of a sports or training activity. This includes in particular:

• Employment contracts for athletes and their renewals
• Transfer contracts

However, Minors benefit from specific protection. The article L. 222-5 of the Sports Code prohibits any remuneration as an agent for the conclusion of a contract involving a minor athlete.

B. Contracts excluded from the scope

Some contracts are not affected by this regulation, in particular:

• Sponsorship contracts for major athletes, which can be traded without a sports agent license and without a salary cap
• Sponsorship contracts for underage athletes, for which no remuneration is possible, even for a licensed sports agent

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II. Who can receive remuneration as a sports agent?

A. Sports agent license holders

Only holders of a sports agent license may receive remuneration for activities covered by the article. L. 222-7 of the Sports Code. Three types of contracts exist:

1. The brokerage contract : the agent connects the parties without intervening in the conclusion of the contract, with remuneration conditional on the success of the connection
2. The mandate contract : the agent acts in the name and on behalf of the athlete, with bargaining power
3. The mandate of common interest : the agent shares an interest with his principal and benefits from legal protection in the event of a breach

B. Persons who do not hold a sports agent's license

In certain exceptional cases, remuneration may be paid to:

• A business contributor, if the remuneration only concerns the signing of the first employment contract
• A service provider, provided that he does not intervene directly in putting the parties in contact

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III. Capping the remuneration of sports agents

A. In French law

The article L. 222-17 of the Sports Code imposes a ceiling of 10% of the contract amount concluded by the agent. This limit is public policy:

• If several agents are involved, their cumulative remuneration cannot exceed 10% of the contract
• Sports federations Can set a lower ceiling

B. According to FIFA

Since the October 1, 2023, FIFA has put in place a regulation capping agent commissions between 3% and 10% according to the player's remuneration. However, this ceiling is contested and suspended in Europe due to an appeal to the Court of Justice of the European Union.

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IV. Methods of payment of remuneration

A. Who pays the sports agent?

Agent payment can be made by:

• The athlete himself
• The recruiting club, according to a tripartite agreement signed between the agent, the club and the player

The article L. 222-17 of the Sports Code requires that this modality be clearly stipulated in the contract, under penalty of nullity.

B. Payment deadlines

The agent's remuneration can be paid in several installments:

• Single payment upon signature
• Payment divided over the duration of the contract
• Remuneration at each contract renewal

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Conclusion

The profession of sports agent is governed by a strict legal framework, limiting his remuneration and governing his activities. To practice legally, an agent must be licensed and respect the ceilings imposed by the Sports Code and, potentially, by FIFA.

With ongoing regulatory developments, agents must remain attentive to European justice decisions concerning the capping of their commissions.

Business to follow!

By Maître Laurent FELLOUS, Associate Lawyer, Alexis Chabot, Student Lawyer and Tristan MAUDUIT, Lawyer — Cabinet FELLOUS AVOCATS