Football League clubs spend £5m on agents

[The Large One]

From the Press Association

The second publication of club spending on agents’ fees by The Football League has revealed that League clubs committed £5m to agents’ fees between July and December 2004. The previous six month period saw clubs commit £1.4m

The Football League Agents’ Fees Report (Jul-Dec 2004) shows that clubs committed to pay agents in 17% (257) of the 1,498 player transactions registered with The League between July and December to the tune of £5,024,789.

Championship clubs accounted for 88% (£4.4m) of this total, with League 1 and League 2 clubs accounting for 7% (358k) and 5% (267k) respectively.

Sixteen clubs did not commit any money to agents during the period under review - thirteen for the second consecutive report. In all, twenty six clubs spent less than £5,000.

Football League Chairman Sir Brian Mawhinney said:

"This report covers a period during which the transfer market is traditionally busy as clubs, including those whose divisional status has changed, shape their squads for the new season. Therefore these figures were always likely to be higher than for the previous six months and I would expect that pattern to continue.

"Nevertheless, too much money is leaving football through payments to agents.

"This report strengthens the argument of those who believe that football needs an effective regulatory framework to ensure a level playing field for clubs when negotiating with players.

"Deals using agents need to be more transparent, not least so that supporters can understand when agents are genuinely helping clubs to behave with financial responsibility. We are working with the FA to try to achieve that goal.

"By publishing these figures Football League clubs continue to give a lead within the game. I congratulate them on their initiative."

EXECUTIVE SUMMARY

Overall Football League Figures (January to June figures in brackets)

• Between July 1, 2004 and December 31, 2004 Football League clubs engaged in 1,498 (963) player transactions (new registrations/player transfers, contract updates, contract cancellations and loans);

• Clubs committed to pay a fee to an agent in 257 (119) of these transactions.

• Therefore, no agent was used in 1,241 (844) transactions;

• League clubs committed to spend £5,024,789 (£1,412,437) on agents’ fees during the period of this report;

• Of this total, £3,836,146 (£1,333,937) was committed to be paid to agents by the signing club and £1,188,643 (£78,500) committed to be paid by the player’s previous club for the agent’s involvement in severance arrangements.

• 16 clubs (34) did not commit any money to agents – 13 of these clubs paid nothing for the second report running.

• They were (asterisk indicates no payments to agents for second consecutive report) Crewe Alexandra*, Blackpool* , Colchester United* , Huddersfield Town, Stockport County, Torquay United*, Wrexham*, Boston United*, Bury*, Cheltenham Town, Darlington*, Kidderminster Harriers*, Lincoln City*, Rochdale*,Rushden & Diamonds*, Scunthorpe United*

• 26 clubs committed to pay £5,000 or less to agents.


The Championship (Jan-Jun figs in brackets)

<sum> In The Championship there were 471 (301) player transactions, 143 (61) involved the use of agents;
<sum> Clubs committed to spend a total of £4,399,403 (£1,131,189) on agents’ fees during this period;
<sum> Of this total £3,242,760 was committed to be paid to agents by the signing club and £1,156,643 committed to be paid by the previous club for the agent’s involvement in severance arrangements;
<sum> 23 clubs (18) committed to pay for the services of a licensed agent;
<sum> 1 club (6) did not pay for the services of a licensed agent (Crewe Alexandra)

League 1 (Jan-Jun figs in brackets)

• In League 1 there were 482 (322) player transactions, 61 (40) involved the use of an agent;

• Clubs committed to spend a total of £358,295 (£240,168) on agents’ fees during this period;

• Of this total £346,295 was committed to be paid to agents by the signing club and £12,000 committed to be paid by the previous club for the agent’s involvement in severance agreements;

• 18 clubs (14) committed to pay for the services of a licensed agent;

• 6 clubs (10) did not pay for the services of a licensed agent (Blackpool, Colchester United, Huddersfield Town, Stockport County, Torquay United, Wrexham).

League 2 (Jan-Jun figs in brackets)

• In League 2 there were 545 (340) player transactions, 53 (18) involved the use of an agent;

• Clubs committed to spend a total of £267,091 (£41,080) on agents’ fees during this period;

• Of this total £247,091 was committed to be paid to agents by the signing club and £20,000 committed to be paid by the previous club for the agent’s involvement in severance agreements;
• 15 clubs (6) committed to pay for the services of a licensed agent;

• 9 clubs (18) did not pay for the services of a licensed agent (Boston United, Bury, Cheltenham Town, Darlington, Kidderminster Harriers, Lincoln City, Rochdale, Rushden & Diamonds, Scunthorpe United)

 

[perth seagull]

So even we paid for an agent this time round? I remember during the last Football League report, we didn't pay anything to the parasites.

 

[The Large One]

That appears to be the case. Hopefully, we were one of the 26 clubs who paid '£5,000 or less'.

 

[larus]

Must be for Nicolas I would guess.

I heard on the radio, that of the fees paid outside the Premiership, Leeds accounted for about a THIRD. Just goes to show that they're still a big club I suppose, much more important than your league position.

 

[perth seagull]

I've downloaded the report from the Football League web site. It says that we spent £33,095 on agents fees! I can't believe this, when during the last Football League report we had spent nothing at all on agents! It must have something to do with the sales of Darren Currie and Danny Cullip. Still, a lot of money for a club that claims to be in financial difficulties at the moment.

 

[The Large One]

Got a link?

 

[perth seagull]

Here's the link:

Football League Agents' Fees Report

 

[perth seagull]

It turns out that we actually paid agents a staggering 22 times!

I'm sure that the club have a legitimate explanation for spending money like this, when they've been asking fans for money through the A & K fund, stressed how much debt we're in, and made a big deal about the £10k fine at West Ham...

 

[The Large One]

It turns out that we actually paid agents a staggering 22 times!

I don't think it says that. It says that there has been 22 player transactions (i.e. players in and out). Look at Crewe's figures. 17 transactions - no money.

 

[Wilts]

BHA paid £33k, Reading paid £210k, basically everyone paid far too much apart from Crewe.

Anyone have any thoughts on how this problem should be resolved? As supporters we should have a say, as our money that we put into the club goes to these agents in one form or another.

My thoughts:

For a club buying a player...:

(a) player is interested in club
(b) player speaks direct with recruitment personnel (manager, director of football etc)
(c) player is offered contract
(d) player discusses contract with solicitor
(e) player and club agree between them who is going to pay the solicitor's fee.

The FA should offer a legal service and an array of solicitors to do this, and therefore an agency panel as well. Therefore there'd be no agent representation in the game whatsoever unless the player wishes to have their own financial advisor to oversee matters other than contractual.

 

[perth seagull]

I don't think it says that. It says that there has been 22 player transactions (i.e. players in and out). Look at Crewe's figures. 17 transactions - no money.

Ah, I see now. Thanks for the correction.

 

[perth seagull]

I've posted a question about this in the "Ask the Club" forum. I'm sure that the club have a good explanation for this.

 

[Seagull73]

Did we negotiate 22 player transactions in the last year? That seems an awful lot more, even taking into account renewal of contracts etc?

 

[The Large One]

It's only for the second half of the year, bro. It also includes contract negotiations and renewals in that figure.

 

[Wardy]

I would expect some of this was due to player contracts. A lot more players have an agent now, and if want to talk to the player you need to contact the agent.

 

[Mustela Furo]

I would expect some of this was due to player contracts. A lot more players have an agent now, and if want to talk to the player you need to contact the agent.

Any contract extension involves an Agent these days - and presumably it is the club that pays and not the player

 

[perth seagull]

Any contract extension involves an Agent these days - and presumably it is the club that pays and not the player

Sounds about right. But Crewe somehow can get away with this. Dario Gradi must force his players to pay the agents' fees when renegotiating contracts.

 

[Wardy]

Sounds about right. But Crewe somehow can get away with this. Dario Gradi must force his players to pay the agents' fees when renegotiating contracts.

Or unlike us their players contracts were not in need of being renewed. Lets face it nearly all our 1st team sqaud were / are going to be out of contract at the end of this season.