If a service fee due to a Football Agent is to be paid by the player or coach, both the Engaging Entity and the Individual may expressly agree to deduct the service fee payment due to the Football Agent from the Individual’s Remuneration.
In other words, a player’s or coach’s employer can pay the service fee to the relevant Football Agent by deducting the service fee from their Remuneration and paying it directly to the Football Agent, but this is only allowed if a player or coach expressly requests it. This is considered simple technical/accounting assistance to the Individual, as the service fee will be deducted from the Individual’s Remuneration. When these payments are made, the Individual who agreed to them must be transparently notified.
Example:
- Niko is a Football Agent representing Salah, a professional player. Niko assisted Salah in signing an employment contract with Orange FC. Since Salah wants his new employer to handle the administrative technicalities of paying the service fee to Niko, he requests in writing that Orange FC deduct the service fee from his monthly salary and pay it to Niko. The accountant of Orange FC deducts the service fee from Salah’s monthly Remuneration and transparently shows that deduction on Salah’s payslip. Niko sends the invoice to Salah every annual quarter with Orange FC in copy. Orange FC’s accountant transfers the service fee to Niko and notifies Salah with the relevant proof of the transfer.
Paying instead of the Client (exception from the “Client pays principle”)
The only exception to this principle is where the annual Remuneration of the player or coach is less than or equivalent to USD 200,000. In such cases, the player or coach may agree that their employer pays the service fees owed to their Football Agent on their behalf, and such payment will not be deducted from their Remuneration.
- AFC East Moors is interested in signing John as their new player. He is represented by his Football Agent, Carla. Carla requests that AFC East Moors pays the Remuneration of USD 150,000 to John and the service fee to Carla. The representatives of AFC Moors agree to the request since John’s Remuneration is less than USD 200,000.
Any tax implications or matters concerning social security payments, and similar, are the parties’ responsibility
