Presentation
Sports agents have just won a significant victory for the protection and enhancement of their profession.
In a decision dated October 14, the Paris Court of Appeal ruled on the complex issue of paid intermediation by lawyers acting as sports agents, overturning the Paris Bar Association’s initiative to authorize lawyers to engage in these new practices (Paris Court of Appeal, October 14, 2021, 20/11.621).
Sports agents versus lawyers acting as sports agents
Since the law of March 28, 2011, lawyers have been able to act as sports agents, challenging the monopoly of sports agents. Many athletes are now turning to lawyers who can provide a wider range of representation and advice than sports agents alone.
Lawyers also offer additional guarantees in terms of confidentiality and professional ethics.
A notable historical difference between the two professions is that lawyers act solely on behalf of their clients, who are paid directly by them, while sports agents take a commission, usually from the club, for connecting players and facilitating their integration/transfer.
The Paris Bar Association’s Internal Regulations Amended to Support Sports Agents
In 2020, the Paris Bar Association encouraged the activities of lawyers acting as sports agents.
By resolution of June 2, 2020, the Paris Bar Association added Article P.6.3.0.3 to its internal regulations, detailing the paid intermediation activities of lawyers acting as sports agents:
“A lawyer, acting as a sports agent, may, for remuneration, bring together parties interested in entering into a contract, either related to the paid performance of a sporting or training activity, or providing for the conclusion of an employment contract for the paid performance of a sporting or training activity.
A lawyer acting as a sports agent may only be remunerated by their client.
This activity must be formalized in a written agreement which may, where applicable, stipulate that the player authorizes the sports club to pay the lawyer, on their behalf and for their account, the fees corresponding to their services.”
The Court of Appeal prohibits the use of sports agents as intermediaries in player-player interactions
In addition to related issues of admissibility for several parties, the lower court judges redefined the scope of activities of sports agents acting as lawyers, effectively limiting the absolute parallel between sports agents and sports agents.
Thus, the judges reiterated that paid intermediaries between players and clubs can only be made by a natural person holding a sports agent license (Article 227-7 of the French Sports Code). Only a licensed sports agent may engage in this brokerage activity, which is excluded from the legal profession.
The Court further emphasized that a lawyer, in their capacity as an agent, cannot engage in the activity of intermediary between players and clubs, as this is a primary commercial activity and not a related or ancillary one.
As a corollary to the decision, the lawyer acting as an agent may not receive fees from the club that is the contracting party for their player client.
Sports Agents: New Legal Activities Regulated by Case Law
For several decades, the legal profession has gradually evolved, incorporating new roles and opportunities such as trustee, agent for artists and authors, data protection officer, etc.
More recently, lawyers have been able to perform certain commercial services, strictly regulated by the Macron Law of August 6, 2015.
One of the criteria established concerned the ancillary nature of the lawyer’s primary activity. Using these terms, the Court of Appeal clarified the limits of a lawyer’s activity.
With this decision, the court restricts the potentially excessive diversification of lawyers’ duties. Their work must primarily focus on advising and assisting their clients.
More information on lawyers’ commercial activities
