FIBA Approves Italian Basketball Federation’s Regulations Governing Player Agents
In April, FIBA approved the Italian Basketball Federation’s (FIP) Regulations Governing Player Agents. The Regulations are embedded at the bottom of this post and intend to regulate agents who represent all basketball players affiliated with FIP.
In order for an agent to identify himself as an Authorized FIP Agent, he must be registered with FIP and/or FIBA. The NFLPA requires all applicants to have a post-graduate degree. FIP only asks that the agent has a high school (or equivalent) diploma. Applicants must also pass an exam to become a licensed FIP agent.
Agents who place their players outside of the United States are known to be paid directly by the teams. However, Article 8(5) states that if the agent’s compensation is not explicitly determined by the parties, the compensation will be 5% of the athlete’s gross compensation. Thus, athletes need to be careful to include a paragraph regarding Agent Fees their contracts with agents; especially if there is an oral understanding that the agent will be paid directly by the teams instead of by the player. Article 8(5) could effectively allow an agent to double dip, earning a Fee from the signing team and the player who signs with the club, depending on the language of the representation agreement and the contract that the player signs with the club.