FIFA Regulations on Working with Intermediaries Liberalisation or devolution?

1. FIFARegulations on Working with IntermediariesLiberalisation or devolution? MICHELE COLUCCI INFO@colucci.eu

2. RELEVANT FIGURESITMS (December 2016) • 1680 Intermediaries before the entry into force of the FIFA Regulations (1 April 2015) • At least one intermediary involved in 21 % of all international transfers in 2016 • 2221 (31 March 2016) plus • 1770 (from 1 April 2016 to 30 October 2016) • 14,591international deals completed in 2016 • From 2013 to 2016, USD 1,1 billion in commission (98,1% from clubs) • Chinese clubs USD 451.3m in 2016, almost 17 times that of 2013, and 344.4 per cent more than the rest of AFC combined.

3. GOALS • Protect the integrity of football • Safeguared high ethical standards • Attack any illegal or unethical practice or circumstances • Enable proper control and transparency of players transfers

4. Whoisresponsibile of What?A Functionalistapproach • Switch of responsibilities • From FIFA to the National Associations • Implement minimum standards • Set up a registration system • New adressees : Players (P)and Clubs (C) • From agents' access to the profession • To the monitoring of obligations of P and C while working with Intermediaries (I) (natural or legal persons) • P and C are responsible for the obligations concerning I (signature and registration of contracts) !

5. Access to Profession • No Selectionanymore • No professionalliabilityinsurance • No bankguarantee • BUT…..

6. Access toProfession • Exam: China,Czech Rep., Denmark (onlyfor the "certified I" ), Ukraine ("permanent I") • Interview: Argentina, Slovak rep., Spain. (high risk of subjectivity) • Professional Liabilityinsurance: Argentina, Brazil, CzRp. Mexico, Paraguay, Portugal. • Proof of Tax compliance: Belgium, Mexico, Portugal, Slovack rep. • Social Security compliance: Belgium,Portugal • Residence:Argentina, Paraguay,Turkey • Work permit: Mexico • Licence (exam): France • Authorizationfromcantonalempl. (andobligationto co-operatewith a Swiss Interme):Switzerland • Bachelor'sdegree(Bulgaria, Qatar, andSaudiArabia)

7. MORE TRANSPARENCY • 1.A new Registration process • 2.The Intermediary Declaration • 3.The Representation contract • 4.Disclosure of all relevant documents to the national association • Obligation to disclose, • Omission will lead to sanctions on C and P although the registration and the transfer will remain valid. • Sanctions for the same violation will vary from Association to Association!!! • Whistleblowing (Ukraine): Sanction for any non reported omission concerning third parties!!!

8. REGISTRATION PROCESS • Intermediaries must beregisteredevery time they are individuallyinvolved in a specific transaction (art. 3) • Registrationforeach transaction: • (Croatia, Cyprus, Greece, Russia, Serbia) • Yearlyregistration or onlyoneregistration (ifeligibility criteria are met): • (Bulgaria, England, Mexico, NL, Paraguay, Poland , Qatar Romania) • Dual registration(onefor the intermediariesandoneforeach transaction) • Argentina, Colombia, Denmark, Italy, Japan, SaudiArabia, Spain, Switzerland, Turkey and Ukraine.

9. Registration processParticularities • Italy: a foreign "I" does not need to be registered with FIGC, but needs to be registered with his own association • England: registration with the FA irrespective of any other registration • Brazil: registration with the CBF or alternatevelyco-operationwith a registered "I" in Brazil • Switzerland: co-operationwith an "I" registered in CH

10. REGISTRATION PROCESSCosts • Fromzero ( Croatia, France, Russia, Serbia, Switzerland) • To a Maximum of 5812 Eurosforeach Transaction in Ukraine and 5000 Eurosper intermediaryeveryyear in the UAE

11. FIFA Innovations: Intermediary declaration "THE IMPECCABLE REPUTATION" Certificates: Croatia, the Netherlands (back to 4 years) "Test of GoodCharacterandReputation" (disqualifyingconditions): The FA Extended proof of goodconduct (foranyadministrative, civil or tax lawinfringement): Germany Authorisationtoinvestigateandobtainany kind of information even fromthirdparties: Spain Honorabilitycertifiedbytworenownedpersonalitiesfrom the footballworld: Colombia

12. RepresentationcontractFIFA: yes to dual representation • BUT forbidden in Bulgaria, France, Japan, Paraguay, Portugal and Russia • Yes, in all others and… • England and Romania, yes but with more guarantees and transparency conditions

13. RepresentationContractexclusivity • FIFA: not required • Germany : prohibited • Czech republic and Italy: yes, an intermediary cannot sign a representation contract with a player or a club already represented by another intermediary

14. Representationcontractduration • Brazil, Croatia, Cyprus, England, Italy, The Netherlands, Portugal, Russia, Spain, Slovak Republic, Turkey, Ukraine: max 2 years • Bulgaria and Czech Republic: max 3 years

15. REMUNERATIONFIFA 3 % cap

16. REMUNERATIONFIFA RECOMMENDS… 3 % cap - 3 % stillrecommendedin 15 countries: Brazil, Denmark, England, Italy, Japan, Poland, Qatar… • 3 % mandatory: China,Cyprus, Paraguay, Russia, SaudiArabia, Serbia and the UAE • 5 % :Switzerland • 7 %: Bulgaria • 10 %: Croatia, France and Ukraine • 14 %: Germany • No cap: Argentina,Belgium, CzechRepublic, The Netherlands, Portugal • Silentrulesin Spain

17. MinorsFIFA: no remuneration at all • 17 out of 32 of examined associations fullyimplemented the FIFA rules (Argentina, Brazil, Netherlands, Russia, Spain, Japan, Portugal) • England: evenstricterrules • Czech and Slovakrepublic: yesremuneration • Silence inItaly but for amateurs no remuneration. • Germany: judges in favor of remuneration if minor has a Licensedprofessionalcontract

18. Disclosure and Publication of data (art.6, para.1) • Players and/or clubs are required to disclose to their respective association the full details of: • any and all agreed remunerations or payments of whatsoever nature that they have made or that are to be made to an intermediary • All contracts, agreements and recors withintermediaries in connectionwith the transfer or empl. Agreement. • Argentina and Spain go beyond the scope os of such a rule: evenpayments not strictlyrelated to the transfer Federationsmust publish by the end of March eachyear: - Namesof registeredplayers - Single transacation - Total amount of all remunerations or paymentsactually made

19. Disciplinary Sanctions (art.9) "Associations are responsible for the imposition of sanctions on any party under their jurisdiction that violates the provisions of these (FIFA) Regulations, their statutes or regulations". "Associations are obliged to publish accordingly and to inform FIFA of any disciplinary sanctions taken against any intermediary. ". Issues: National Associations have jurisdiction even on international transfers. Intermediaries need to be aware of every national statute to comply with!

20. Disciplinary Sanctions • P, C, I: Warning, fine, reprimand, suspension, revocation of the registration (Argentina,Brazil, England, France, Germany…) • Denmark:heavy sanctions: • Playerscanbebannedfrom a match • Clubs canbetemporaybannedfromconcluding and extendingplayers 'contract, making national and int. transfers, and beexcludedfromnat and int. tournaments • Only sanctions againts I: Poland

21. Disputes Resolution • Responsibilitywith national associations • Ordinary labour courts and civil courts on civil and commercial issues parties canwave off those courts in order to defer disputes to Arbitration Body (BE, DK, FR, DE, GR, Mexico) Argentina, Cyprus, Italy,andJapan: parties maychoose sports bodies or ordinary court England: FA arbitral tribunal Russia: obligation to go before the Sports Arbitration Court Serbia and Uruguay: onlyordinarycourts

22. BEST PRACTICES • Certified intermediaries (Denmark) • Mandatory training courses (Turkey) • Certification for associations of intermediaries (The Netherlands)

23. IMPACT ON SPORTS STAKEHOLDERS • Advantages • More Transparency • More freedom for players • Financial balance • Disadvantages • Too many differences in national measures • Risk of contradictions • Increase of difficulties for intermediary • More responsibility for Players and Clubs

24. Conclusions • Noliberalization but rather devolution! • Overall positive assessment • Furtherimprovements (more co-ordination) and • sistematicreview of the implementation in the future