Football Agents come under the spotlight again

The BBC programme Panorama turned its investigative might against Football Agents, but what most fail realise there are regulations governing Agents involvement in the Transfer Market.

In previous articles we have highlighted the issues surrounding Agents and the “bung culture” that surrounds them.  So let’s look at the facts again.

In November 2005 the Football Association introduced rules that were intended to tighten up the potential abuses of the transfer market by banning football clubs, their officials, players and employees from holding any interest in licensed player agencies. Though the programme, however, would imply that even in the short time since their introduction, the latest rules leave much room for improvement.

In an industry that sees bung claims arise almost periodically, and with rising cynicism that any real consequences will be brought about from the most recent allegations, is there anything that can be done to change the ugly culture that envelops the game?

LCF Sports Consultant John Hendrie, drawing on his experience, as a professional player and player-manager was aware of rumours of the ‘bung’ culture and recalls a typical rumour

“There was one player a club wanted to sign and the player’s agent wouldn’t even talk to the club unless he was paid  £100,000 up front.”    

John has also seen the possibility for change, and although his suggestion of bringing in lawyers may seem a little radical, he does makes a convincing argument.

“Agents can have a destabilising influence – after all, it is in their interests to unsettle a player – and often they will tie young players in to one-sided contracts that aren’t properly explained. Sports law has developed so much now that the main criticism of solicitors acting on behalf of players – that they lack the knowledge of the sporting side of the business – is now no longer applicable. In many cases solicitors can more effectively represent a player at a fraction of the cost of an agent and without any incentive to unsettle players”

Cost, as Hendrie points out is one of the main elements that would support the employment of lawyers rather than agents, with the agent’s commission versus the hourly rate of lawyers. Graham Kelly, the former FA chief executive said “It's an absolute scandal that there is no proper financial regulation system within football. Agents are the biggest sore, the biggest cancer in the game. Millions and millions have gone out of the game to agents but those concerned don't have to declare where their commission goes.”

Stephen Lownsbrough, Head of  Sport at LCF Sports Law explains Hendrie’s argument further: "In all cases where there are allegations and rumours it is important to retain a sense of perspective.  There is however a problem and a credibility issue which has dogged the football industry for a number of years.  The only way to address this is for a position of total transparency to prevail. 

“Many of our clients seek our advice because they know we will advise "as it is" and we are totally independent. Some have had bad experiences with

Agents in the past, however we have no axe to grind, our position is not compromised and we are fully regulated by the Law Society".

The employment of former players, like Hendrie, gives law firms vital access to industry knowledge and contacts, and coupled with the contract expertise that law firms can offer, the practice of using sports lawyers is one that could prove beneficial for player, clubs and fans alike, whilst becoming more commonplace in an industry desperately in need of  reputation resuscitation.