New FIBA Rule on Payment to Agents
The International Basketball Federation (FIBA) has introduced a significant regulatory change, effective from 5 December 2024, which prohibits clubs from paying agents on behalf of players.
This change, detailed in the amendment to former Article 3-297, now Article 299(b)) of the FIBA Internal Regulations, aims to eliminate conflicts of interests and ensure that agents are paid solely by their clients, thereby reinforcing the integrity of the agent-player relationship.
New Article 3-299(b) reads as follows:
“[…] A FIBA-Licensed Agent (and any legal entity or non-incorporated business through which one operates) shall not […] b. accept payment for his or her services by anyone other than his or her client […].”
Clubs are required to comply by ceasing any direct or indirect payments to agents and amending ongoing transactions accordingly.
Enforcement of this rule, initially set for 1 February 2025, has been postponed to 1 July 2025 following opposition from certain European agents and clubs, providing clubs with a transitional period to adjust their practices.
One of the reasons for some European clubs' opposition to that change is that this new rule will in practice constrain the clubs, at the players' request, to increase their overall remuneration to compensate for the amount that will be owed directly by the player to his agent, with the ‘extra cost’ in social security charges that the amount in question will represent.
Contracts signed before this enforcement date under the previous regulations will not be sanctioned, but any new or renewed contracts must adhere to the new rules, with non-compliance resulting in disciplinary measures.
The rationale behind FIBA's amendment is to uphold high standards of integrity and transparency in basketball, as FIBA argues the direct or indirect payment of players' agents by clubs has long posed a risk of conflicts of interests, potentially compromising agents' independence in representing their clients' best interests. By mandating that agents are paid exclusively by their clients, FIBA aims to strengthen the impartiality and integrity of the agent-player relationship, ensuring that all stakeholders act in the best interests of the sport and its participants.
In Switzerland, although the involvement of agents is not compulsory for the signing of athletes, it does provide added value in terms of networking and bringing clubs into contact with players available on the market, particularly for international transfers. Agents must be registered and authorised, with verification of their authorisation and representation by the clubs.
Swiss law (Art. 20 OSE and 3(2) OEmol-LSE) stipulates that if the agent is commissioned by the player, the maximum commission charged by the agent may be 5% of the first overall gross annual salary, plus VAT, which overrides FIBA’s allowance of up to 10%.
