[Sports law] FIBA Tightens Regulations on Agent Payments by Clubs – What impact will this have on the sports market?
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[Sports law] FIBA Tightens Regulations on Agent Payments by Clubs – What impact will this have on the sports market?
FIBA (Fédération Internationale de Basketball) has announced a key regulatory change for sports agents – as of July 1, 2025, clubs will no longer be allowed to pay player agents in any form, eliminating the previous exception that permitted such transactions under specific conditions.
What Does This Mean for Agents and Players?
Contracts Must Be Adjusted – any agreement signed or renewed after July 1, 2025, must include direct payment from the player to the agent. Eliminating Conflicts of Interest – FIBA argues that this restriction strengthens agent independence and protects players' interests. Risk of Sanctions – failure to comply with the new regulations may result in penalties for both agents and clubs.
Implementation Deadline Postponed
Although the changes were originally set to take effect on February 1, 2025, after consultations with industry representatives, FIBA decided to delay enforcement until July 1, 2025, allowing more time for adaptation.
Sports Lawyer's Commentary on Basketball Agents' Compensation Changes
This is another step in the global trend toward greater transparency in professional sports. Similar regulations are already in place in other disciplines – for instance, FIFA also aims to restrict agent payments by clubs. However, this may create a greater financial burden on players, potentially influencing negotiation strategies in sports contracts.
Contracts Between Basketball Players and Agents According to FIBA and PZKosz Regulations
A professional basketball career involves not only athletic development but also legal and financial aspects. One of the key elements of a player's market operation is the contract with a sports agent, which is subject to both international and national regulations. In this article, we will discuss the rules governing contracts between basketball players and their agents in accordance with the guidelines of FIBA and the Polish Basketball Association (PZKosz).
FIBA Regulations Regarding Basketball Agents
The International Basketball Federation (FIBA) has established detailed regulations governing the activities of sports agents. Any agent representing a player on the international stage must hold a FIBA license, authorizing them to negotiate on behalf of players.
The most important principles derived from FIBA regulations include:
Mandatory License – the agent must pass an exam and obtain a FIBA certificate.
Contract Transparency – the contract between the player and the agent should be clearly defined and include the terms of cooperation.
Commission Limitations – FIBA sets the maximum percentage of earnings an agent can charge from a player.
Dispute Resolution – any conflicts between a basketball player and an agent are resolved in accordance with FIBA regulations, often through arbitration courts.
PZKosz Regulations on Cooperation with Agents
The Polish Basketball Association (PZKosz) also has its own guidelines regarding the activities of sports agents. The main principles include:
Agent Registration – individuals acting as agents in Poland must be registered and accredited by PZKosz.
Scope of the Contract – the contract should clearly define the duration of cooperation, the agent's responsibilities, and the commission rate.
Player Protection – PZKosz emphasizes the protection of players' interests, requiring agents to adhere to professional ethics.
Cooperation with Clubs – agents operating in the Polish market should work with both players and clubs, ensuring that contracts comply with national regulations.
What Should a Contract Between a Basketball Player and an Agent Include?
A well-structured contract should include:
The details of both parties (player and agent),
The duration of the contract,
The scope of services provided by the agent (e.g., contract negotiations, financial advisory),
The commission rate,
Clauses regarding contract termination and possible disputes,
A statement of compliance with FIBA and PZKosz regulations.
Contracts between basketball players and their agents play a crucial role in an athlete’s career and must comply with applicable regulations. Both FIBA and PZKosz introduce specific rules aimed at protecting players' interests and ensuring transparency in cooperation. Before signing a contract, it is advisable to consult a lawyer or a specialist in sports law to avoid potential problems in the future.
FIBA circulars
Removal of Exception in Article 3-297 of the FIBA Internal Regulations regarding Payment of Agents by Clubs from 14 January 2025
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