by After the formal establishment of the Football League in 1888, the financial benefit accruing from the game went largely to those who owned clubs. It was almost 70 years until an Italian, Gigi Peronace, a translator for British managers in Italy, was one of the first to take advantage of the growing popularity of the game in Europe and see a market opportunity .
In 1957, Peronace brokered the then-record £65,000 transfer of John Charles from Leeds to Juventus, taking advantage of the wage differentials between the two countries. At a time when UK wages limited players’ earnings, Italian clubs could offer lucrative deals, illustrated by Charles’ signing bonus of £10,000 compared to the UK norm of £100.
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The abolition of the maximum wage in English football in 1961 greatly increased the appeal of the game in the country and enabled average footballers’ salaries to rise by 61% by 1964. As a result, agents gained enhanced bargaining power, becoming true allies -necessary for the players. This era heralded an increase in the professionalism of the game and, with it, an increase in the potential earnings for those involved.
In 1992, the arrival of pay TV transformed sports viewing by introducing subscription models. This influx of broadcasting revenue boosted clubs and, by extension, player salaries, while agents were also able to take advantage of the improved earnings. The 1995 Bosman ruling revolutionized transfers and enhanced player leverage by enabling free agents to command higher wages, increasing agents’ commission potential along the way.
This growing influence of agents extends to the lower leagues of football, although the totals are in stark contrast to those in the Premier League. Player representation is clearly important to ensure that we do not return to a historically distorted balance of power. However, it must be calibrated to the overall sustainability of clubs in a world where, even in the Premier League, losses are being systematically fueled, at least in part, by rising player wage costs and agent demands. In my experience, agents’ commissions and fees range from a flat fee of several thousand pounds to percentages of the player’s earnings with some claiming “they don’t get out of bed for less than 10%”.
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Especially at our level of the game, markets are not complicated or even interesting. There are few variables and the negotiation should be simpler – is there a fee to pay, what is the salary, what is the term, any bonus schemes and is there a selling fee? I was even told by one manager that my summary is too complicated because most players are really only about “pay and holidays”.
In other industries, positive negotiations are an opportunity to improve long-term reputation and are generally based on professionalism and mutual trust. This is often impossible in football as the same agents often come around. I was surprised to learn that the barrier to becoming an agent with Fifa is extremely low, requiring only a background check, a fee and a 20 multiple choice (open book) test for certification.
This ease of entry into the market results in a diverse range of qualities of people we encounter. Conflicts of interest are endemic if the agent’s remuneration is dependent on getting a deal rather than what is best for the player or the club.
One of the biggest challenges is how to approach players. An initial inquiry makes sense, even though it’s technically illegal, because it’s not worth wasting time if a player doesn’t want to move. The problem occurs when clubs tend to highlight a player or even agree terms before the current club is in talks to let a player leave.
The promise of a significant increase in salary and possibly a signing bonus for the agent can really impress a player. Often, each party chooses to forget that they already have a secret contract. I recently had an agent tell me the terms he agreed to when speaking to the prospective new club and club chief executive quoting confidential terms in that player’s contract. That would be a breach of contract if you want to take a hard line, but mostly it’s just sloppy, unethical and unprofessional.
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Market inefficiency is to be improved in any industry where parts of the chain are extracting more value than the benefit they create. According to FIFA, in 2023 clubs paid $888m in agent service fees, a 42.5% increase on 2022. English clubs accounted for $280m of the total.
In order to align the economic interests of the players with the sustainable future of the sport, I would have some suggestions for the new football regulator. A salary cap coordinated with the Professional Footballers’ Association and the Football League and benchmarked against European markets was introduced to keep our leagues competitive. The cap can be set at a level that allows progression based on merit (say £2,000 a week in Tier Two), meaning talented and ambitious players can move up.
This framework would include provisions for clubs to sign up to three “marquee” players outside the cap, mirroring Major League Soccer’s approach in the United States. All this has the advantage of being much simpler than the financial balance regulations.
A limit would enable salary and commercial negotiations to be standardized across the different layers of the league, effectively eliminating the perceived complexity and conflicts of interest. We could improve the model further by bringing more former players with professional qualifications and skills to take on roles filled by agents. This would divert agents’ commissions to the PFA, which would benefit ex-players, and contributions could form part of the PFA’s pension scheme.
This approach not only promises a more equitable distribution of resources but also ensures that those who have spent their lives in football continue to benefit from the game’s prosperity.
• Jason Stockwood is chairman of Grimsby Town
