The name Erkut Sogut is little known by football fans, but within the boardrooms of some of the world’s most famous clubs he’s held in awe, writes David Little, a partner in our Corporate and Commercial department who increasingly handles Sports Law cases, too.
He’s the man, attributed by many, to have professionalised the work of the commercial football agent, his name being behind some of the Premier League’s record signings.
The modern definition of a successful agent who thrives in the present era of football is an individual who has a diverse skill set across finances and investments, legal comprehension, contractual knowledge, commercial business, social media, branding and marketing, multi-lingual, personability and, of course, a refined and enthusiastic understanding of football.
His blog is an education in itself, too. The work of football agents began in contracts and transfers of players between clubs in the day and age of wage restrictions and narrow trade streams and channels. The crux of the middle-man’s role hasn’t totally changed.
Many football agents still engage in sourcing and negotiating suitable transfers or contract extension deals for their player clients. The major difference is that they now have an additional list of opportunities that they must consider for their client, and some may even choose to work just in these other areas rather than on the contractual playing side.
As Erkut Sogut says here, “The role of an agent has become holistic and all-encompassing. Whilst the fiduciary responsibility of holding a sense of duty and loyalty to their client to act in their best interests remains the absolute imperative principle of representation, this applies across an unprecedented scope of opportunities. An agent’s ability to act as a legal representative in procuring and negotiating deals and contracts remains paramount and integral to the role. However, more so for agents who manage clients that are particularly in the public eye, their job involves far more than simply negotiating a three-year extension on their employment contract or a possible transfer to a rival second-tier side on behalf of their client.”
And the sums paid to agents is vast. The BBC reported in April that Chelsea paid out more than £75m to football agents and intermediaries over the 12-month period to February 2024, as Premier League clubs spent a combined £409.5m. Since Todd Boehly took over ownership of the club in the summer of 2022 transfer payments exceeding £1 billion have been paid. Among the deals, the signing of midfielder Moises Caicedo could rise to a British record £115m.
Manchester City’s outlay on agent fees exceeded £60m, according to figures released by the Football Association detailing payments made by Premier League, EFL and National League clubs.
As you might expect Manchester United were the third-highest spenders. (£34m) – having paid less than half of Chelsea’s total.
Luton Town spent the least among Premier League clubs, paying out £2m, as last season’s relegated top-flight clubs Leeds United (£13.2m), Leicester City (£8.1m) and Southampton (£7.5m) had the highest costs among current Championship teams.
The total combined outlay among Championship clubs was £61.3m, compared to £5.1m in League One where Derby County (£434,465) spent the most.
Wrexham, owned by Hollywood actors Ryan Reynolds and Rob McElhenney, led League Two spending with £347,027 paid to agents and intermediaries. Overall payments by current League Two clubs amounted to £2.4m.
So, are professional agents worth it?
CK66 Player Management has just one client. Its owner, a Mr Charlie Kane. And its prime asset? That would be Harry, England’s record goal scorer.
Many clubs depend on their commercial survival by selling on players for more than they originally cost. Invariably the responsibility for bringing on such players is attributed to the manager and the backroom staff. But remember, behind every improving player is an even more ambitious agent, keen to do the next deal.
David Little is a Partner at Bishop & Sewell in our expert Corporate & Commercial team. If you would like to contact him, please quote Ref CB488 on either 07968 027343 or, 020 7631 4141 or email: company@bishopandsewell.co.uk.
The above is accurate as at 14August 2024. The information above may be subject to change.
The content of this note should not be considered legal advice and each matter should be considered on a case-by-case basis.
