Player Agents in FIBA Structure

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SPORT MARKETING AND MANAGEMENT Player Agents in FIBA Structure

Interview with FIBA Secretary General Patrick Baumann

Please provide us with some back- same representation of agents and had a all the players and coaches that they ground information on the FIBA Li- very positive outcome, coming up with represent will be easily accessible, censed Players' Agents program, which some draft regulations... This draft was since it will be all displayed on www.fi- is supervised by FIBA's Development Di- first approved by the FIBA Central Board ba.com. rector Zoran Radovic and Legal Advisor and then the 2006 FIBA World Congress, FIBA-certified agents will be the only Dr. Dirk-Reiner Martens. I believe that which met in Japan, rubber-stamped the ones allowed to make business for inter- the idea came up in 2003 and the overall whole regulation governing the players' national transfers of players. In addition, concept has actually taken shape in agents. The first test for agents took certified agents are entitled to use the 2007. What have been the steps that FI- place in March 2007. FIBA Arbitral Tribunal (FAT), which is a BA has taken during these four years to new and completely independent body put the project in place? All sports agents dealing on the interna- that can be used for the resolution of Actually, FIBA's idea to bring the agents tional basketball scene are supposed to conflicts. Therefore, from now on, it will into the institutional basketball family become FIBA certified agents. What are be much easier for players, coaches, started in 1996-1997. At that time, several the main benefits they receive? and clubs to resolve any disputes. proposals came up, but none of these The main reason behind having only cer- ideas eventually took shape and tified agents as professionals operating What are the main benefits that play- passed... Most probably the project was in the basketball world is simple: to regu- ers/coaches and clubs currently get too ambitious. There were also too many late the whole market. Relations be- from dealing with FIBA-certified agents, doubts, too many unanswered ques- tween agents, players, coaches, clubs as opposed to the past when they had to tions, and we were perhaps not ready to and national federations, all transfers- deal with every type of representative? take such a step at that point and time... everyone and everything benefits from Dealing with FIBA-certified agents will In 2003, FIBA again reviewed this whole such a step! Things become easier, bring them more guarantees, more secu- concept and over the course of almost smoother, done in a more professional rity. They will now be handling business two years we undertook research way and, last but not least, more trans- relationships with people, who have the around the world to get a precise and parent. knowledge, who are well-prepared, who overall idea of the whole situation: what There are plenty of indications that are professionals, who have a relation- was going on in this specific area, what prove that, in the world of sports, and ship with FIBA, and who operate on an were the most important problems and basketball in particular, certain aspects international level. issues, etc. In March 2003, we organized have not been regulated the way they an informal meeting in our offices, in should have. In some cases, there are What are the necessary requirements to Geneva, where we invited 12 agents, players who are changing their agents take the FIBA-certified agent test? mainly from Europe. We listened to their all the time when and how they want, We ask the applicants to provide us with opinions and concerns and shared with without respecting any contracts. There a certificate of non-conviction that has them all the possible options that could are also many cases where it is not clear been issued not more than six months be envisioned. During that informal at all who is the legitimate person enti- before. In addition, all applicants must meeting, the agents themselves started tled to represent a particular player. In be at least 18 years of age. to ask us, FIBA, to do something directly addition, certain clubs do not fulfill their Applicants have to be knowledgeable of to regulate all issues relating to their obligations towards their players and all agents' regulations and must become work. They directly asked us to take a coaches and/or towards their agents. In familiar with the age limit regulations leading role in this whole project, since some other cases, certain transfers are stated in FIBA's Internal Regulations. they considered FIBA an entity that they questioned. When all of the above is tak- The day of the test, we divide applicants could partner with and trust... en into consideration and the market is into different small groups. For each of We decided to accept that challenge regulated in the correct way, the new these groups the procedure is the same: and started to closely follow all the de- scenario logically benefits everyone in- first, we do a presentation on the FIBA velopments in basketball, and in other volved-agents included, of course. Arbitral Tribunal and then we have a sports. We also paid attention to some By having certified agents, the whole question-answer session. Every appli- legal areas and some experiences of business is much more transparent: their cant is welcome to raise as many ques- other commercial entities. In 2005, we complete details, including their CVs/bi- tions as he or she wants because we tru- had another informal meeting with the ographical sketches, as well as the list of ly believe that it is crucial that all their

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doubts, even the smallest ones, are ments and regulations in place and we direction because we have followed a thoroughly clarified by our experts. are currently in the process of trying to thorough process that has focused on This process usually takes about 90 establish a common way for those two getting acquainted with all the already- minutes and we then proceed with the countries to work with us. existing models, systems, and regula- test itself, which consists of 25 ques- Israel has also recently set up some tions. Some countries are currently try- tions with multiple-choice answers. Ap- regulations governing players' agents. ing to establish their own national certi- plicants need to have 18 correct an- In the United States, there is also a legal fied agents programs and we are help- swers in order to pass the test. We have requirement for agents in about 35 ing them to do so. A good example is an average of 21-22 correct answers, states. They have the National Basket- Russia. with only a few applicants getting all ball Players Association (NBPA), which answers correct. has been taking care of agent issues in What are the advantages of getting an a serious way for about 19 years. Need- FIBA-certified agent license rather than Since some national federations al- less to say, we have links with those or- one issued by a national federation? ready have their own agent programs in ganizations; they are part of our strate- The answer is simple: if you want to place, how did the national federations gic plan. As a matter of fact, we did a deal with international transfers, you welcome the FIBA program? presentation before the NBPA and they need to become a FIBA-certified agent. The French Basketball Federation has eventually endorsed our whole project On the contrary, if you operate on a na- governmental regulations for agents. In and distributed all of our materials as tional scale and only deal with local Italy, there are two associations of part as their annual assembly's working players and coaches from the country in agents in place: one is controlled by the papers. Increasingly, more American which you are based, then you don't Italian Basketball Federation itself and agents are obtaining a FIBA license as need to get an FIBA license. the other by a syndicate of agents. In well. both cases, there are certain require- I believe that we are going in the right What is the position of the ULEB/Eu-

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SPORT MARKETING AND MANAGEMENT

roleague with regards to the FIBA Li- censed Players' Agents program? It was already absolutely clear for us that we would need to bring everyone, all parties and organizations, on board. There is no question for us: we are all basketball, each and every one of us. We have had very successful meetings with the ULEB and the Euroleague and have built a good and solid cooperation. In April 2007, on the occasion of their General Assembly, both of these organizations completely endorsed the FIBA Players' Agents Regulations and agreed to the concept of the FIBA Arbitral Tri- bunal. In addition, we have also had meetings with the European Basketball Players Union and they also applauded the whole program. I would summarize the situation as fol- lows: we believe that we are going in the right direction since all basketball entities throughout the world are on the same page with regards to our program. From the outset, we have received full support from all organizations.

How and when will the requirement be enforced that only FIBA licensed agents be authorized to operate in the international basketball scene? FIBA certified agent licenses have only been available since March 2007, so how much time has an agent in order to get his FIBA license? It was simply not feasible for us, from all standpoints, logistically, time-wise, from an operational point of view, to im- plement and enforce everything starting from day one. It was simply impossible. In 2008 we are planning to conduct tests in the Americas, Oceania, and Europe, continuing to license agents, and ex- plaining the program throughout the world. This is a process that obviously requires some time. After that, some- time around late 2008 and in the begin- ning of 2009, we will be in a position to be much stricter and will really make sure that all rules are enforced. In about three years we will not have a single person operating on the international scale and dealing with international transfers who is not a FIBA licensed So far, we have had 130 people who This is about reaching a certain quality, a agent. This is one of the reasons why I passed the test and received their license. certain level of performance, and getting would strongly encourage all agents to We really do not have a precise idea of the to really understand the problems and go through this process as soon as pos- amount of people that are interested in views of all parties involved. It is very im- sible. becoming a FIBA licensed agent. Our ini- portant that only FIBA-certified agents are tial guess was that around 200 people the ones who do the business in basket- How many agents have already passed would eventually become FIBA-certified ball. the test? What are FIBA's expectations agents, but this number might end up be- or goals with regards to the number of ing a too small an estimate. Let's say that a representation company officially licensed agents in the future? For us, this is simply not about numbers. has 30 agents working for it. Do all of

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Americas and Europe in October. If there is a need, we might eventually organize another test in the Americas in 2009. Due to the limited number of agents in Africa and Asia, all African and Asian applicants are required to come to Europe to take the test.

What types of financial requirements are needed to opt for a FIBA Players' Agents license? We created this program with the sole objective to service the agents, and create better conditions for everyone involved in basketball. FIBA is investing its money and funding everything in order to provide a service with very limited costs for the agents. The fee required for an applicant to take the test is 250 Swiss francs, which is around 150 euros. Afterwards, once one has passed the test and has obtained his or her license, there is an annual fee of 1,000 Swiss francs, which is a bit over 600 euros a year. Needless to say, these fees are relatively modest. The monies collected in fees is re-invest- ed immediately into the service. We have a person dealing directly with all agent- related issues. We are also slowly starting to link our letters of clearance and transfers to the players' agents; there is an agent section on our website. We are also considering creating a letter of clearance in electronic format. We will continue to make investments in a strate- gic field such as this one.

Is the license the only requirement or are there any refresher courses that FI- BA certified agents will be requested to undergo on a periodical basis? In the future, we will be organizing refresher seminars and will be up-dating agents on the new developments. In addition, our goal is to be completely transparent. This is why all the information can be easily found on www.fiba.com. All awards and decisions, the complete FAT requirements, and the list of the players and their representatives will be displayed on our website. We strongly believe that our website constitutes the best possible reference these agents need to get a FIBA license or How often do tests take place? And tool for our certified agents. We don't only the one(s) signing the contracts? where will the next ones be held? want agents to have to cope with un- We are being very practical here by only re- In 2007 we already held two tests in Eu- necessary expenses, especially taking quiring that the person, or persons, signing rope and one in Oceania. This year, we into consideration that this program al- the contracts get their FIBA license(s). will organize two tests in Europe and so entails a time-consuming workload For us this is not about creating a money- one in Oceania, plus we will stage one for them. making machine. We are investing in peo- or two in the Americas. The dates are ple, in time, in IT systems, and in many other yet to be confirmed, but we will most Letters of clearance will include all operational aspects to provide the best likely stage one in the Americas, Eu- players' agents' details. What is the possible service. rope, and Oceania in March, and one in reasoning behind that? FIBA ASSIST MAGAZINE | 30 2008 | PAGE 37 30_035_038_baumann.qxd 28-01-2008 12:30 Pagina 38

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Nowadays it is extremely rare for a player on general considerations of justice and for Sport? not to have an agent. In order to simplify fairness, without reference to any particu- Procedures in front of FAT are much quick- and speed up the whole process, we have lar national or international law. er and less expensive. In addition, its deci- to start by knowing who are the people in- sions and awards are taken by a single ar- volved in a transfer. Therefore, we must Is FAT a supra-national tribunal? What kind bitrator on an ex-aequo et bono basis, have all players' transfers linked to the of legal and enforcement powers does it based on justice and equity. The Court of name of an agent. For instance, we have have when it relates to specific countries Arbitration for Sport, which features three recently begun to request that the copies and/or jurisdictions? arbitrators, is the last instance to go in the of all the transfers between national fed- According to the New York Convention, rat- case of an appeal. Its process takes con- erations be delivered to FIBA. ified by about 170 countries, arbitrations siderably longer and is more expensive such as FAT's are recognized and en- than FAT's. Please describe how the FIBA Arbitral forced. Tribunal (FAT) will work. However, we do recognize that in a number The first FAT case was recently decided, FAT is a completely independent tribunal of countries, labor disputes, which can be which involved a dispute between the created to resolve disputes between disputes between a player and a club, can- player, Djuro Ostojic, and the PAOK Thes- clubs, players, and agents. The tribunal not be settled by means of arbitration. In saloniki basketball club in Greece. What will review cases of club versus player, those cases where a FAT award or decision was the outcome? player versus agent, or agent versus club. cannot be enforced in a specific country, This was a relatively easy case because FAT, which represents a true revolution in FIBA, while it has no power to enforce FAT PAOK decided not to participate in the pro- the world of sports, will hopefully be a awards, does have a provision that states ceedings. This award, like all future cases, simple, quick, and inexpensive way for re- that this International Basketball Federa- was made public and can be found on our solving the disputes that may arise be- tion can sanction parties who fail to honor website. Djuro Ostojic recently asked FIBA tween the various parties. FAT awards. Those sanctions range from fi- to sanction PAOK because PAOK refused to FAT is seated in Geneva, but is not an inte- nancial penalties, to bans on international honor the FAT's award. gral part of FIBA. It is rather a completely transfers in the case of players or clubs, to We really want to be as transparent and independent tribunal presided over by Ms. withdrawal of agent licenses. Moreover, clear as possible because we believe that Gabrielle Kaufmann-Kohler of Switzer- we are studying the possibility of banning there is no reason to hide anything. In many land, one of the most prominent and pres- the participation of teams in international sports, people are proud to make public tigious arbitrators in the world. FAT arbi- competitions. earnings, salaries, taxes' figures, every- trators render a decision within six weeks thing. We strongly believe that the fact of from the end of the proceedings on an ex- What are the main points of difference be- being transparent will help basketball to aequo et bono basis. Decisions are based tween the FAT and the Court of Arbitration grow even more.

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