Who this article is for:

• Professional footballers.

• Academy players approaching professional football.

• Parents and guardians.

• Football agents and agencies.

• Players reviewing or negotiating representation agreements.

For many footballers, one of the most important aspects of the relationship with an agent concerns commission.

Players are often aware that agents are entitled to be paid for the services they provide, but there can be uncertainty about how commission operates in practice and what an agent may be entitled to receive.

The position will always depend on the terms of the representation agreement, the services provided and the applicable regulatory framework. Nevertheless, understanding the basic principles can help players make informed decisions before signing a representation agreement.

Why Understanding Commission Matters

Many commission disputes arise because the parties have different expectations from the outset.

A player may believe an agent is only entitled to commission on a particular contract or transfer, whilst the agent may take a different view based on the wording of the representation agreement.

Understanding how commission is calculated and when it becomes payable can help avoid disputes later.

What Does Agent Commission Cover?

Agent commission commonly arises in connection with:

• Playing contracts;

• Contract renewals;

• Transfers;

• Loan arrangements;

• Commercial agreements;

• Sponsorship arrangements; and

• Other football-related opportunities.

The precise scope of commission should be set out clearly in the representation agreement.

Commission on Playing Contracts

In many cases, a player's agent will receive commission linked to the player's employment contract with a club.

The commission structure will vary depending on the agreement entered into between the player and the agent.

Scenario 1

A player signs a three year contract worth £1m per year.

The representation agreement provides for commission of 5% of the player's gross basic salary.

The commission could equate to:

• Annual salary: £1,000,000;

• Commission at 5%: £50,000 per year.

Over the life of the contract, the total commission may be £150,000.

The outcome will depend on the precise drafting of the agreement and whether commission is payable annually or otherwise.

Commission on Salary, Bonuses and Other Earnings

Players should not assume that agent commission is limited to basic salary.

The scope of commission will depend on the wording of the representation agreement. In some cases, commission may be calculated solely by reference to a player's basic salary. In others, commission may extend to additional earnings arising under the playing contract.

These may include:

• Signing on fees;

• Loyalty bonuses;

• Appearance bonuses;

• Performance bonuses;

• Promotion bonuses;

• Team achievement bonuses; and

• Other contractual payments.

Scenario 2

A player signs a contract providing for:

• Basic salary of £1 million per year;

• A £100,000 signing on fee;

• Appearance bonuses;

• A promotion bonus.

If the representation agreement provides for commission on all contractual earnings rather than basic salary alone, the agent's entitlement could be significantly higher than a player initially expects.

For that reason, players should always establish precisely what income is subject to commission and whether commission is calculated by reference to basic salary only or wider contractual earnings.

What Happens if the Player Leaves Before the End of the Club Contract?

Questions often arise where an agent negotiates a playing contract, but the player subsequently leaves the club before the contract expires.

Scenario 3

A player signs a four year contract negotiated by Agent X.

After two years, the player transfers to another club and the original playing contract comes to an end.

In those circumstances, questions may arise regarding whether Agent X remains entitled to commission on the balance of the original contract that was never performed.

The answer will depend on the wording of the representation agreement, the circumstances of the transfer and any applicable regulatory requirements. Some agreements may provide for commission to be linked to actual earnings received by the player, whilst others may give rise to different arguments depending upon their drafting.

For that reason, players should understand precisely how commission is calculated and whether commission continues only whilst salary is being earned under the relevant contract.

Scenario 4

A player signs a four year playing contract with Club A.

The contract is negotiated by Agent X whilst a valid representation agreement is in place.

After one year, the player changes representation and appoints Agent Y.

The player remains employed under the same four year playing contract negotiated by Agent X.

In these circumstances, a dispute may arise regarding whether Agent X remains entitled to commission on the remaining three years of the contract.

The answer will depend on the wording of the representation agreement and the applicable regulatory framework. In some cases, the former agent may argue that they remain entitled to commission because they negotiated the contract that continues to generate the player's earnings. In others, the player may dispute the extent of any continuing entitlement.

Why This Matters

This issue frequently arises where:

• A player changes agent during the life of a playing contract;

• A representation agreement is terminated early;

• A relationship breaks down after a successful contract negotiation;

• A player is asked to pay commission to both a former and current agent; or

• The representation agreement is unclear regarding post-termination commission rights.

Players are often surprised to discover that changing agent does not necessarily eliminate commission obligations connected to an existing contract.

For that reason, it is important to understand not only the commission percentage being charged, but also how long any commission entitlement may continue and whether commission can remain payable after the representation agreement itself has ended.

Does Commission Continue After the Representation Agreement Ends?

One of the most common misconceptions amongst players is that if a representation agreement has ended, the agent's right to commission automatically ends as well.

That is not necessarily the case.

Many representation agreements provide that an agent remains entitled to commission on a playing contract negotiated during the term of the representation agreement, even if the agency relationship subsequently comes to an end.

Commission on Contract Renewals

A further issue arises where an existing contract is renegotiated.

Scenario 5

A player signs an improved contract with their existing club following negotiations conducted by their agent.

Questions may arise regarding:

• Whether commission applies to the new contract;

• Whether commission continues throughout the contract term;

• Whether commission is payable if the relationship later ends; and

• Whether any post-termination entitlement exists.

These issues are among the most common causes of disputes between players and agents.

Commission on Transfers

Agents may also become involved in negotiating transfers between clubs.

Scenario 6

A player transfers from one club to another and signs a substantially improved employment contract.

Where the agent has been involved in securing the move, commission may arise through the player's representation agreement.

Again, the position will depend on the contractual arrangements and the applicable regulations.

Commission on Commercial Deals

Many players assume that agent commission only applies to football contracts, transfers and contract renewals.

That is not always the case.

Representation agreements often contain provisions dealing with commercial opportunities, including:

• Sponsorship agreements;

• Boot deals;

• Endorsement arrangements;

• Image rights opportunities;

• Social media partnerships;

• Commercial appearances; and

• Brand ambassador arrangements.

Whether commission is payable will depend on the wording of the representation agreement and the role played by the agent in securing the opportunity.

Scenario 7

A player signs a boot sponsorship agreement worth £250,000 per year.

If the representation agreement provides for a 20% commission on commercial opportunities introduced or negotiated by the agent, the agent may be entitled to £50,000 per year from that arrangement.

Common Areas of Disagreement

Disputes commonly arise where:

• The player sources the opportunity independently;

• Multiple agents are involved;

• The agreement is unclear regarding commercial commission;

• The commercial arrangement arises after the representation agreement has ended; or

• The player changes representation during the relationship.

For that reason, players should always understand:

• What categories of income are covered;

• Whether commercial commission differs from football commission;

• Whether commission applies to social media income;

• Whether commission applies to image rights arrangements; and

• Whether any entitlement survives termination of the representation agreement.

Can the Same Agent Act for Multiple Parties?

In some transactions, questions may arise regarding whether an agent is acting for the player, the engaging club or another party involved in the deal.

The permissibility of these arrangements will depend on the applicable regulatory framework and the circumstances of the transaction. Players should always understand who the agent is acting for, who is paying commission and whether any potential conflicts of interest may arise.

Tax Considerations

Agent commission can have important tax consequences for footballers.

Where a player's agent commission is paid by a club on behalf of the player, the payment may in certain circumstances give rise to tax consequences for the player and may potentially be treated as a taxable benefit.

The tax treatment will depend on the particular circumstances and the applicable tax rules in force at the relevant time.

Why This Matters

Players should consider not only the percentage commission payable to the agent, but also the wider financial impact of the arrangement.

In some cases, players and their advisers may seek to address these issues during contract negotiations to ensure that the overall financial package properly reflects the cost of any commission arrangements and associated tax liabilities. This may include considering whether the player's remuneration package adequately reflects the cost of any commission arrangements and the potential tax consequences associated with them.

For that reason, commission arrangements should not be considered in isolation from wider contract and tax planning considerations.

Players should always obtain specialist tax advice in relation to their individual circumstances.

FIFA and FA Regulations

Football agent commission arrangements do not operate solely by reference to the representation agreement.

The regulatory framework governing football agents has changed significantly in recent years and players should ensure they understand both the representation agreement itself and any relevant FIFA and FA requirements applying at the time.

Players, agents and agencies should also be aware of the applicable FIFA and FA regulatory framework, including rules relating to representation agreements, transparency, disclosure obligations and conflicts of interest.

These regulations address matters such as:

• Representation arrangements;

• Agent conduct;

• Disclosure obligations;

• Conflicts of interest; and

• Other regulatory requirements affecting football agents and their clients.

Players should therefore consider both the contractual terms of the representation agreement and the wider regulatory framework when assessing commission arrangements.

Common Areas of Dispute

Commission disputes frequently arise where:

• A player changes agent;

• A transfer takes place shortly after termination of a representation agreement;

• Parties disagree regarding who introduced an opportunity;

• Commission is claimed on a renewal;

• A commercial opportunity arises after the relationship has ended; or

• The representation agreement is unclear.

Many disputes can be avoided through careful drafting and a clear understanding of the parties' rights from the outset.

Questions Footballers Should Ask Before Signing

Before signing a representation agreement, players should understand:

• What commission rate applies?

• What earnings are covered?

• Does commission apply to commercial opportunities?

• Does commission apply after termination?

• What happens if the player changes agent?

• Is commission payable on renewals?

• How and when is commission calculated?

Clear answers to those questions can often prevent significant disputes later.

Why Specialist Advice Matters

Representation agreements frequently sit at the centre of disputes between footballers and agents.

Understanding how commission provisions operate is therefore just as important as understanding the duration of the agreement or the termination provisions.

A carefully drafted agreement can help protect both the player and the agent while reducing the risk of disputes in the future.

Need Advice?

Barrington Atkins advises footballers, football agents and agencies on representation agreements, football agent commission arrangements, agency exits and commission disputes.

Whether you are reviewing a proposed representation agreement or involved in a dispute regarding commission, obtaining advice at an early stage can often help clarify the position and avoid unnecessary conflict.