Episode 1: The Decline of Traditional Football Agents - Pitch & Profit: The Game Beyond The Goals.

Welcome to Pitch & Profit, where I’ll be diving into the key business trends shaping the world of football today. Over the coming weeks, I’ll be publishing a series of articles that explore different facets of the football industry—from player representation and data-driven negotiations to the rise of private equity in football clubs. Each article will examine a unique aspect of this evolving landscape, offering insights into how the business side of football continues to transform.

In this first instalment, I’ll be discussing the decline of traditional football agents, a role that has come under increasing pressure from new regulations, family involvement, and the emergence of data-driven contract negotiations. Stay tuned for future episodes

The Decline of Traditional Football Agents: A New Era of Player Representation

Introduction

The role of football agents has long been pivotal in the sport, managing transfers, negotiations, and player contracts. Historically, agents emerged as key intermediaries in the complex world of football transfers during the late 20th century. They facilitated deals that often involved not just financial negotiations but also the management of player brands and careers. Notable figures like Pini Zahavi, Mino Raiola, Jorge Mendes, Giovanni Branchini and Domenico Di Carlo revolutionised the agent role, helping players secure lucrative contracts and transfers while also becoming influential in shaping club strategies. Agents like Jean Pierre Bernes and Luciano D'Onofrio were instrumental in negotiating some of the biggest deals in the 1990s and 2000s, securing not only impressive salaries for their clients but also a significant foothold in the world of football business.

However, the landscape is shifting. As we look ahead, it's clear that traditional agents are facing increasing challenges from new FIFA regulations, evolving financial models, and the growing involvement of players' families. Moreover, data-driven negotiations are changing the dynamics of how contracts are managed. In this article, we explore the key factors driving the decline of traditional football agents and what this means for the future of player representation.

FIFA’s Representation Rules: Undermining Agent Earnings

One of the most pressing issues for football agents today is the tightening of FIFA’s representation rules. These regulations, aimed at making the transfer market more transparent and fair, are directly squeezing agents' ability to earn.

• Single Representation: Under current regulations, agents are typically restricted to representing only one party in a deal—either the player or the club. While this model was once sufficient, the introduction of capped commissions and closer scrutiny on dual representation has diminished the financial incentives.
• Dual Representation: FIFA allows agents to represent both the player and the buying club, but only with explicit consent. This has added more layers of complexity to what was once a straightforward process. While this practice is still legally permitted, the increased oversight and consent requirements mean that agents are walking a tighter rope than ever before.
• Triple Representation: The infamous triple representation—where an agent represents the player, selling club, and buying club—has always been controversial. Under 2023 FIFA's new regulations on working with intermediaries, triple representation is no longer allowed.

The effect of these restrictions is clear: agents who represent players rather than clubs are finding themselves squeezed financially. With lower commissions and more oversight, the traditional agent model is becoming less sustainable, pushing many agents out of the market or forcing them to shift their focus to club representation.

FIFA Licence Barriers and Capped Commissions

On top of the representation restrictions, agents are now being subjected to new financial and operational constraints.

• Commission Caps: FIFA’s cap on commissions is one of the most significant changes impacting agents today. Agents can now only earn a maximum of 3% of a player's salary and 10% of the transfer fee in a deal. This might sound like a decent amount on paper, but compared to the previous earnings agents were accustomed to, this is a significant reduction. Vast majority of agents feel that these caps are unfair, as they are still expected to provide the same level of service while earning a fraction of what they used to.
• Licensing System: In addition to the capped commissions, FIFA has reintroduced a licensing system for agents. While I agree that some regulation is necessary to prevent unethical practices, this system creates new barriers to entry. Agents now need to pass exams and comply with ongoing educational requirements. While this may professionalise the industry, it is undoubtedly making life harder for smaller or independent agents trying to carve out their niche in an increasingly saturated market.

This shift is making it harder for traditional agents to survive, especially those without the resources or network to adapt to these new regulations. As a result, we’re seeing a concentration of power among larger agencies, with smaller agents being forced out or absorbed into bigger firms.

Families Taking Over: Erosion of Trust in Traditional Agents

Another trend that has accelerated the decline of traditional agents is the growing involvement of players' families in managing their careers.

• Trust and Control: It’s understandable that players would prefer to have their families handle their affairs. After all, family members are seen as more trustworthy, and players often feel they have more control over their careers when a loved one is managing the negotiations. But from a professional standpoint, this shift has significantly reduced the role of external agents in major deals.
• High-Profile Examples: The rise of family representation isn’t just a passing trend—it’s here to stay. Look at cases like Neymar, whose father has managed his career for years, or Erling Haaland, whose father plays an active role in his career decisions. These examples highlight how family members are often stepping in, reducing the reliance on traditional agents.

In my experience, the erosion of trust in agents stems from past controversies—hidden fees, conflicts of interest, and the perception that agents are more concerned with their commission than the player’s long-term welfare. As a result, players are increasingly turning to family members or even legal advisors to represent their interests.

Emergence of Data: The Case of Kevin De Bruyne

Data has transformed almost every aspect of football, and player negotiations are no exception. The best example of this is Kevin De Bruyne’s contract renewal in 2021.

• Kevin De Bruyne’s Contract Renewal: De Bruyne famously bypassed a traditional agent and instead used data analytics to negotiate his contract with Manchester City. By compiling a report with the help of data experts, De Bruyne demonstrated his value to the club based on detailed performance metrics. He secured a significant pay rise without needing an agent to handle the negotiations.
• Another Example - Marcus Rashford: Similarly, Marcus Rashford has also embraced a data-driven approach, relying on performance analytics to inform his contract discussions with Manchester United. This trend of players using data to negotiate terms reflects a broader movement towards self-representation, which undermines one of the core functions that agents once provided.

These cases exemplify how data is empowering players to take control of their own contracts. With the right data, players are now able to represent themselves effectively, undermining the role of traditional agents. As data analytics become more widespread in football, I believe we will see an increasing number of players opting to negotiate their contracts directly, further diminishing the necessity for agents.

Conclusion

The football industry is evolving, and the role of the traditional agent is facing a major overhaul. FIFA’s updated representation rules, capped commissions, and licensing requirements are squeezing agents’ earning potential and making it harder for smaller agencies to compete. At the same time, the increasing involvement of players' families and the use of data analytics in negotiations are reducing the need for external agents.

Looking forward, we may see a shift towards a more consolidated agent market, where only a few large agencies thrive, while smaller agents struggle to remain relevant. The future of football representation will likely be shaped by more direct negotiations, increased transparency, and a growing reliance on data-driven decision-making. Traditional agents, as we once knew them, may soon become a thing of the past.