Agent Contracts and Legal Issues in International Transfers

Entrance

Today, in many sports, especially professional football, player transfers between clubs are shaped by contracts with significant economic value. The role of agents in this process is quite substantial. However, the legal status of agents, their duties and powers, fee methods, and obligations between the parties are often subjects of debate. Particularly in international transfers, disputes arising from agent contracts can lead to conflicts between FIFA, the Turkish Football Federation (TFF), and local legal systems.

This article will address the legal nature of agent contracts, FIFA regulations, Turkish Football Federation (TFF) legislation, and potential issues arising under the Turkish Code of Obligations.

---

I. Legal Nature of Management Services

1.1. Management as a Type of Contract

A management service contract is a specific type of agency contract, involving negotiating and finalizing contracts on behalf of an athlete or club. While it falls under Articles 502 and subsequent articles of the Turkish Code of Obligations, it may also include elements of a "service contract" due to the fee paid for the services provided by the manager.

1.2. Restrictions Imposed by FIFA

FIFA, in order to regulate the practice of football agents (officially known as "FIFA Licensed Football Agents"), introduced the FIFA Football Agent Regulations (FFAR) , making agent activities subject to licensing requirements. At the same time;

• The agent can only represent one side,

• The fee is limited to a maximum of 3%

• There is a requirement for a written contract

• Disputes can be referred to the FIFA Agent Chamber

Binding provisions have been introduced in this manner.

---

II. Agent Activities in Türkiye and TFF Regulations

2.1. TFF Player Agents and Coach Agents Regulations

In Türkiye, agent activities are conducted under the "Player Agents Regulation" of the Turkish Football Federation (TFF). The TFF grants licenses to agents through examinations and requires that the contract between the agent and the parties be recorded.

The representative's;

• In addition to its FIFA license, it is also recognized by the Turkish Football Federation (TFF)

• Submitting an annual activity report to the TFF (Turkish Football Federation),

• Not representing a third party

There are requirements.

---

III. Common Legal Issues in Agent Contracts

3.1. Exceeding the Authority to Represent

It is a common problem for agents to exceed their authority in contracts they make with clubs on behalf of the athletes they represent, or to assume additional responsibilities without informing the athlete.

3.2. Dispute Regarding Agent Fees

The absence of explicit provisions in the contract can lead to difficulties in calculating the fee to be paid. Disputes often arise, particularly with commissions that are determined based on the total contract amount rather than a percentage.

3.3. Dual Representation and Conflict of Interest

An agent representing both a club and a player simultaneously creates ethical and legal problems. FFAR and TFF have prohibited this. However, attempts to circumvent this prohibition through informal agreements lead to serious disputes.

3.4. The Issue of Jurisdiction in International Disputes

When one of the parties is a foreign national, it can create problems as to which court has jurisdiction or which law applies. In such cases, the FIFA DRC (Dispute Resolution Chamber) or the CAS (Court of Arbitration for Sport) intervenes.

---

IV. Fictional Case Study: The Transfer of Romanian Footballer Adrian Popescu

Summary of the Event:

Romanian footballer Adrian has signed a 3-year contract with Anadolu Gücü Sports Club, which plays in the Turkish Super League. Turkish-licensed agent Caner facilitated the transfer as Adrian's representative. The contract stipulates a 7% commission, which was verbally agreed upon to be increased to 10%.

Following the transfer, the club declared a 7% commission in the contract submitted to the Turkish Football Federation (TFF), while Caner sent a separate invoice to the club for the remaining 3%. The club refused to pay this amount, and the agent filed a lawsuit with FIFA.

Legal Debates:

• Authority to Represent: A percentage not specified in a written contract cannot be proven by a verbal agreement made by the agent. Under Article 502 of the Turkish Code of Obligations, the authority to represent must be explicit.

• FIFA Rules: According to FFAR article 14, a maximum representation fee of 3% is stipulated. A rate of 10% is clearly against FIFA rules.

• Jurisdiction and Arbitration: Since the parties have designated the FIFA Agent Chamber as the competent authority in the contract, FIFA, not a local court, is the competent body for resolving the matter.

• According to TFF Regulations: The 3% hidden fee not reported to the TFF may lead to the suspension of the agent's license for disciplinary reasons.

---

V. Methods of Resolving Disputes

5.1. FIFA Agent Chamber

Launched by FIFA in 2023, this body is the first-instance court for disputes relating to agent contracts. The parties may appeal to CAS (Court of Arbitration for Sport) if they wish.

5.2. CAS (Court of Arbitration for Sport)

If disputes between agents and players/clubs take on an international dimension, the CAS (Court of Arbitration for Sport) can issue binding rulings. These rulings are subject to appeal before the Swiss Federal Court.

5.3. Turkish Courts

If the parties have not specified jurisdiction and the dispute occurs in Türkiye, the general courts (Civil Courts or Commercial Courts) will apply. However, jurisdictional disputes often arise with FIFA/TFF.

---

VI. Evaluation and Conclusion

International football transfers are complex processes involving large sums of money and numerous stakeholders. In this process, agents play a crucial role, both in protecting player rights and safeguarding club interests. However, abuse of this critical position, lack of transparency in contracts, agents' activities prone to conflicts of interest, and unauthorized conduct lead to serious legal disputes.

Although FIFA's new regulations aim to close the gaps in this area, many grey areas still exist in practice. In Türkiye, the TFF's regulations need to be brought into full compliance with FIFA rules. Ensuring that agent contracts are written, transparent, and subject to scrutiny is essential to prevent disputes.

Gamze Akbulut, Law Faculty Student