Football Player Management Agreement

Introduction

A football player management agreement is a contract between football players and their managers (or management companies). This agreement constitutes a legal instrument that authorizes managers to assist players in managing, representing, and providing comprehensive support for various aspects of their professional careers. Managers are entrusted with advancing players’ careers and are authorized to manage various processes and negotiations on their behalf, including but not limited to transfer negotiations, sponsorship agreements, media relations, and financial consultancy.

The relationship between managers and football players/clubs is regulated by the “Regulation on Working with Football Agents” (“Regulation”). The Regulation delineates the qualifications required to become a manager, the conditions for obtaining a license, and the minimum rights and obligations imposed upon football players, clubs, and managers..

Legal Nature

The Regulation does not explicitly address the legal nature of a football player management agreement. However, pursuant to Article 13 of the Regulation, football players and clubs are required to specify the legal nature of their contractual relationship with the manager to ensure transparency. In particular, the management agreement must explicitly indicate whether it constitutes a service agreement, consultancy agreement, representation agreement, or any other form of legal arrangement. The determination of the agreement’s legal nature will depend on the parties’ intentions. For instance, a contract established solely for the purpose of representing a player would qualify as a power of attorney agreement.

In practice, managers predominantly assist in the negotiation of contracts between players and clubs. They may also be vested with the authority to negotiate contracts and represent players directly. Pursuant to Article 520 of the Turkish Civil Code (TCC), a brokerage agreement is defined as an arrangement whereby a broker facilitates the possibility of a contract between parties or aids in its formation, earning a commission upon the contract’s conclusion. In practical terms, managers function analogously to brokers by either assisting in the negotiation of a new contract between a player and their current club or facilitating the player’s transfer to another club. Additionally, under the Regulation, managers are entitled to a percentage of the player’s gross annual salary. Therefore, they are compensated only after a contract is successfully concluded. When these two factors are considered together, it becomes evident that the rights and obligations of the manager and the player/club are essentially elements of a brokerage agreement. As a result, the Regulation requires the parties to specify the legal structure of the agreement. However, in practice, since managers facilitate the formation of contracts and earn compensation only after a contract is signed, this type of agreement is typically classified as a brokerage agreement. Pursuant to TCC Article 520/2, provisions related to power of attorney will be applicable in brokerage agreements, provided they do not contradict the Regulation. Moreover, the Regulation mandates that management agreements be executed in writing.

Pursuant to Article 13 of the Regulation, a management agreement must contain specific mandatory elements, including the names of the parties, the scope of the management activities, the contract’s commencement date and duration, the fee and payment terms, the mutual rights and obligations of the parties, termination provisions, and the signatures of the parties. Agreements that fail to meet these requirements shall be considered null and void. Furthermore, the duration of a management agreement cannot exceed two years, and any clause providing for the automatic renewal of the contract will be deemed invalid. Consequently, upon the expiration of the agreement, the parties are required to negotiate and execute a new agreement if they wish to continue their relationship.

Managers may act not only on behalf of players but also enter into agreements with prominent clubs to represent the club’s interests during contract negotiations. Accordingly, the legal considerations applicable to football player management agreements shall, where relevant, also extend to club management agreements.

Football Player Management

The management of football players encompasses the oversight and representation of their professional careers. Football player managers are responsible for organizing various aspects of players’ professional affairs, with the primary objectives of optimizing their career trajectories and safeguarding their interests. In fulfilling these responsibilities, football player managers engage in effective communication not only with the players they represent but also with clubs and other key stakeholders within the football industry..

The key functions of football player managers are as follows:

  • Career Management: Football player managers contribute to the strategic planning and management of players’ careers. As part of this process, they engage with appropriate clubs and leagues that align with the player’s current skills and goals. Managers oversee professional matters such as transfer processes and negotiating contractual agreements.
  • Advertising and Sponsorship Agreements: Assisting football players in capitalizing on advertising and sponsorship opportunities is one of the key functions of managers. Managers assist football players in securing agreements with commercial brands and participating in advertising campaigns.
  • Career Development: Managers also support players’ personal and professional development beyond the scope of their athletic careers. They assist football players in considering their post-career plans by providing consultancy on education, health, and other related matters.

As seen, football player managers primarily serve to facilitate the negotiation of contracts between players and their current or prospective clubs. Additionally, they may assume advisory and representation roles as part of their professional responsibilities. In compliance with the Regulation, the parties are required to explicitly define the legal nature of their relationship within the agreement. However, it should be noted that, in its fundamental structure, this agreement qualifies as a brokerage agreement, and pursuant to Article 520 of the Turkish Code of Obligations, the provisions governing powers of attorney, as well as the provisions of the Regulation, shall be applicable.

Rights and Obligations of the Parties

  1. Manager’s Rights and Obligations
    • Right to Compensation: In practice, considering the nature of the work performed by managers and in the absence of a contrary provision in the agreement, management agreements are classified as brokerage agreements. Pursuant to Article 520 of the Turkish Code of Obligations (TCO), the provisions governing powers of attorney also apply to brokerage agreements. Remuneration is not regarded as a mandatory element of a power of attorney agreement. According to Article 502 of the TCO, a representative is entitled to compensation only if stipulated in the agreement or established by custom. However, both Article 520 of the TCO and the Regulation require that the manager’s remuneration and payment terms be specified in the management agreement, making remuneration a mandatory element of such agreements. The remuneration is to be paid by the party on whose behalf the manager is acting. However, if the manager acts as an intermediary on behalf of the player, the manager is prohibited from receiving any remuneration from the club. The exception to this prohibition arises if the player consents, after the legal transactions are finalized, to the club making the payment on their behalf. If the agreement includes provisions regarding remuneration, those provisions will prevail. In the absence of such provisions, under Article 15 of the FIFA Football Agents Regulations (FFAR), the manager is entitled to receive up to 5% for transactions valued at or below USD 200,000 and up to 3% for transactions exceeding USD 200,000.
    • Right to Recover Expenses and Damages: Pursuant to Article 510 of the Turkish Code of Obligations (TCO), the principal is obligated to reimburse the agent for any necessary expenses incurred in the execution of the mandate. As the provisions governing power of attorney agreements are also applicable to brokerage agreements, the manager is entitled to seek reimbursement from the player for any costs and expenses incurred in connection with contract negotiations.
    • Right to Establish Communication: Football player managers have the right to initiate contact with any club to facilitate negotiations. If the manager is obligated, pursuant to the terms of the agreement between the parties, to conduct contract negotiations, the manager is authorized to conduct negotiations and, where appropriate, execute the contract.
    • Right to Follow Administrative Procedures: Football player agents may submit applications to the Turkish Football Federation (TFF) concerning administrative actions and decisions on behalf of the player. However, authorization through a power of attorney is required to undertake the follow-up of such administrative matters.
    • Compliance with Legal Regulations: Managers must comply with various rules and regulations while exercising their rights and authority. Within this scope, managers are required to adhere to the statutes and regulations of FIFA, UEFA, and TFF, as well as the decisions issued by competent and authorized bodies and legal provisions. In cases of non-compliance, sanctions may be imposed depending on the severity of the violation, including the potential revocation of the manager’s license.
    • Obligation Not to Participate in Unauthorized Negotiations: Managers must follow the explicit instructions of the player and avoid engaging in negotiations that contradict the player’s wishes. When conducting transfer negotiations on behalf of a football player, the manager is required to obtain the consent of both the player and the club with which the player is bound by a professional football contract.
    • Non-Inducement Obligation: The manager must refrain from inducing the player to neglect their obligations and responsibilities arising from the professional football contract with their club or to unjustifiably terminate the contract. As is evident, this constitutes a duty of non-performance.
    • Obligation Not to Permit Third Parties to Use the License: Football player agents are obligated to prevent unlicensed individuals from engaging in management activities using their license or benefiting from the rights conferred by the license. Furthermore, the transfer of a football player agent license to a third party is strictly prohibited.
  2. Player/Club’s Rights and Obligations
    • Compliance with Legal Regulations: Like managers, football players are also required to comply with legal regulations. Additionally, they are obligated to adhere to and comply with the decisions issued by competent and authorized institutions and bodies.
    • Use of Licensed Manager Services: Football players are obligated to utilize the services of a licensed manager during transfer negotiations or contract renewal discussions. Furthermore, if a contract is signed with the manager, the player is required to verify the validity of the manager’s license.
    • Provision of Required Documents: Players must provide the necessary documents requested by authorized institutions. This obligation also encompasses ensuring that the documents are complete and accurate. Providing misleading or falsified documents may result in sanctions being imposed under the Disciplinary Regulations.
    • Disclosure of Licensed Manager’s Involvement in Contract Negotiations: If a football player has entered into an agreement with a manager, and the transfer or contract renewal negotiations are conducted by the manager, the player is required to explicitly declare whether the manager is providing services to them under the terms of the agreement. Additionally, where the manager is involved in the execution of the contract, the player must ensure that the manager’s name and title are duly specified within the contract.
    • Obligation Not to Induce the Club to Breach the Management Agreement: In certain instances, clubs have been observed attempting to exclude managers from contract negotiations by making the conclusion of agreements more difficult, prolonging negotiations to inflate fees, or for other similar reasons. Moreover, clubs may present reasons to professional football players, such as alleging that their manager is acting in bad faith or suggesting that the player should terminate their agreement with the manager, thereby encouraging the player to act in breach of the management agreement. To prevent such disputes, the Regulation explicitly prohibits clubs from inducing players to breach their agreements with managers. This prohibition constitutes a duty of abstention that clubs are required to observe.

Conclusion

In conclusion, while the player’s primary obligation under the agreement is the payment of fees, the manager’s fundamental duty is to mediate the conclusion of a contract. Within this framework, the agreement is classified as a brokerage agreement. However, if the parties require additional obligations beyond the core duties, the legal nature of the agreement will be determined in line with the parties’ intentions. Since the provisions governing power of attorney agreements also apply to brokerage agreements, this agreement will be governed by the relevant provisions of brokerage and power of attorney agreements, as well as the Regulation. Furthermore, the rights and obligations of the parties arising from the agreement have been examined. As detailed above, due to the mandatory written form and the inclusion of essential elements in the contract, it is subject to formal requirements. Disputes arising from the agreement may be resolved through arbitration, the Turkish Football Federation (TFF) Dispute Resolution Committee, or judicial courts.