Update: From July 1, 2020, new rules have come into effect for football agents following an adjustment to the Federal Regulations.
The decree on the introduction of a registration obligation for sports agents
After the football scandal in which more than one football agent was involved, Flemish Minister of Sports Muyters announced stricter rules for football agents, and by extension all sports agents.
These stricter rules came into effect from 1 June 2019 following the Decree of 29 March 2019 regarding training vouchers for employees, the introduction of a registration obligation for sports agents and amending various other provisions in the Work and Social Economy policy area (link).
The message is to act quickly.
The new rules
– Registration obligation
The regulations apply to any company, natural person or legal entity, whose mediation activities take place at least partly in Flanders and which provides private employment mediation for (potential) paid sportspeople or on behalf of sports clubs with a view to concluding an employment contract for paid sportspeople.
In its accompanying texts, Flanders believes that there can be employment mediation not only when concluding an employment contract, but also during recruitment and scouting. Whether this latter view holds up will have to be determined by future case law.
The territorial scope – activities that take place at least partly in Flanders – is also interpreted very broadly. For example, even an agent who represents a player who would like to transfer to a Flemish club would have to register and an agent would also have to register as soon as he conducts negotiations in Flanders. It does not matter whether the broker is registered in another region or country. Here too, comments must be made as to how this will roll out in practice.
Registration is done online via a form and is only in Dutch, although foreign brokers must also register. After registration, the registration is valid and a registration number will be transferred. If the registration is not in order, it can be suspended or withdrawn.
– Specific sports-related obligations
Where we have already discussed in an earlier blog post the general obligations regarding employment mediation that sports agents must comply with (link), the decree provides for a number of new specific obligations for sports agents.
The following new obligations may be imposed on the football agent and sports agent, among others:
- The sports agent must state his registration number in every form of external communication;
- The sports agent may not collaborate with non-registered sports agents to conduct his mediation activities in the Flemish Region;
- The sports agent may not directly or indirectly approach persons under the age of 15 with a view to concluding a mediation agreement;
- The sports agent may not receive compensation for conducting mediation activities for a minor (under 18);
- The sports agent may not set up constructions to circumvent the registration obligation that involve the involvement of third parties and where third parties are engaged to carry out brokerage activities.
– Deposit of EUR 25,000.00
Sports agents who want to remain active are obliged to provide a deposit of EUR 25,000.00 with a financial institution or insurer. Contrary to previous reports, no deposit must be paid to the government, but the placement of a deposit with the bank is sufficient. In principle, a bank guarantee should suffice.
If the sports agent has a debt towards the Flemish Government, the latter can claim the guarantor up to the amount of the debt.
The Flemish government has nevertheless allowed an exception in this initial phase of the new decree whereby proof of the deposit can be provided to the Department of Work and Social Economy of the Flemish government up to 30 days after registration.
What to do as an (existing) football agent / sports agent?
Both the new and the already active football agent or other sports agent had to register from June 1, 2019 and comply with the new obligations if they wish to continue their activities in a legal manner.
Immediate registration and implementation of the rules is necessary. However, the deposit can be paid up to 30 days after registration.
Especially with the upcoming transfer period, things are very urgent.
In view of the new obligations, it seems to us that there is an opportunity to challenge certain actions taken by unregistered sports agents or taken by registered sports agents who do not comply with the new obligations.
Do you have more questions or would you like advice or assistance from a lawyer? Do not hesitate to consult us by telephone (09/334.94.70), by e-mail (sport@everest-law.be) or via it contact form.
More information about registration: link
Our previous blog post about the football agent and the sports agent: link