Jorge Mendes, Mino Raiola, Jonathan Barnett…we often see these names and others associated with the biggest moves in the winter and summer transfer windows. Certain agents have become as known as the players that they represent, yet little is known about their income. Whereas many player salaries across large leagues are public information (or at least reported in the press), the financials of agents were murky until the Football Leaks scandal. Even after the Football Leaks scandal disclosed some of the massive commissions agents and intermediaries made on transfers, including the more than 370 million euros made by agents conducting business in Germany and Britain in 2015 alone, the numbers involving commissions, endorsements, and other agent streams of income are often not publicized. However, we also know that these agents are not working for free. So, how do soccer agents make their money?
Commissions
Commissions are earned when a player moves from one club to another, either on a free transfer or a transfer with a fee. In either instance, the player’s new club pays a fee (“commission”) to the agent for the negotiating and other work the agent performs to get his or her client to sign with the new club. In the case of a free transfer, the agent fee is negotiated with the new club. In cases where the player does not move as a free agent and a transfer fee is paid, the fee is still negotiated with the new club, but the general guideline is that an agent is paid 20-25% of the transfer fee for their services. One of the transfer arrangements detailed in the Football Leaks scandal was Paul Pogba transfer from Juventus to Manchester United. Pogba, represented by Mino Raiola, moved to Manchester United for 89.3 million pounds, which was a world-record at the time. Raiola, his agent, was paid an additional 23 million pounds, slightly over 25% of Pogba’s transfer fee, in agent fees. Raiola was also able to negotiate additional compensation from Manchester United, with the club paying Raiola 3.3 million pounds each year of Pogba’s five-year deal, plus an additional 2.2 million pounds per year to Raiola’s agency. In total, Pogba’s transfer earned Raiola and his agency more than 50 million pounds and, with Pogba’s contract expiring this summer, Raiola looks set to earn another large payday from whatever club, Manchester United or otherwise, that lands Paul Pogba.
Player Salaries
Another stream of income for agents is player salaries. Agents are traditionally paid 5% of each client’s annual salary each year. There are three main ways the agent earns this: 1. The player pays; 2. The club pays; or 3. The player and club each pay a portion. To demonstrate how this works, we’ll look at Ryan Fredricks, right-back for West Ham United. Fredricks makes 40,000 pounds per week, which is an annual salary of 2.08 million pounds per year. Unique Sports Group, one of the largest soccer player representation agencies, earns 5% of that, or 104,000 pounds per year. If the player pays, Fredricks pays Unique Sports Group 104,000 pound each year. If the club pays, West Ham United pays Unique Sports Group 104,000 pounds each year. If both the club and the player pay, both the club and the player pay a negotiated amount to Unique Sports Group totaling 104,000 pounds each year. Agencies have numerous clients, so 5% of each contract can add up to a very large number, but some agents and agencies make a significant amount from one or two players, though they always have numerous clients. For example, Cristiano Ronaldo made approximately 57 million euros gross at Juventus. Ronaldo is represented by GestiFute, an agency started by Jorge Mendes, which represents more than 100 current players. GestiFute, taking a traditional 5% cut, would have made 2.85 million euros per year from just Ronaldo’s contract. But agents don’t just take a cut of the salary, they also take a cut from other earnings.
Endorsements and Sponsorships
Apart from the commissions agents earn from transfers and the amount earned from player salaries, agents also earn money from player endorsement deals. Players receive endorsement offers from all sorts of companies: watch brands, clothing brands, food and beverage brands, sporting brands, etc. Each of these endorsement offers is evaluated by the player and agent, and the agent negotiates the details of the endorsement. In exchange for these services, the agent usually takes 10-15% of the endorsement deal.
Conclusion
Being a soccer agent isn’t necessarily glamorous. Your job involves catering to high-end who are used to having everything done their way, dealing with scandals that clients may become embroiled in, traveling often for negotiations, maintaining relations with clubs, recruiting new clients, and constant accessibility comes with the career. Additionally, the threat of a client being poached by another agent is always present. The industry is difficult to break into and even more cutthroat to stay in. However, for those who manage to navigate the career path and are successful, the above information demonstrates that the career can be very lucrative.
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