Under the Football Agent Regulations, remuneration is subject to caps that vary according to the client represented.
Four situations, four caps
When representing the player or coach, the stated cap is 5% of remuneration. It is also 5% when representing the engaging club. Permitted dual representation of the individual and engaging club increases this to 10%. When representing the releasing club, the stated cap is 10% of transfer compensation.
The USD 200,000 threshold
Above USD 200,000 in annual remuneration, excluding conditional payments, the excess portion is subject to 3%, or 6% for dual representation. The calculation uses bands rather than applying one rate to the whole amount.
For remuneration of USD 1 million, the player's agent calculates 5% on the first USD 200,000 and 3% above it: an effective rate of 3.40%, giving a maximum annual fee of USD 34,000.
Many candidates apply the reduced rate to the entire remuneration. This is the most common mistake in this topic.
What is included in the calculation base
Transfer compensation used as the calculation base excludes damages for breach of contract and sell-on fees. Other conditional payments, such as performance or loyalty bonuses, may be included.
A condition that takes priority
No fee is payable unless services were specified beforehand in a representation agreement in force when the services were provided. A correct calculation cannot compensate for a missing agreement.
For detailed mechanisms and numerical examples, see our fact sheet Fee caps: the reference table.