Starting July 1st, 2024, a major shift is coming to overseas basketball. With FIBA’s new ruling, the responsibility for paying agent commission fees will no longer fall on teams but instead on the players themselves. This change may seem like just a financial technicality, but it will have huge ramifications for teams, players, and the overall overseas market.
For years, some lower-budget teams actively avoided signing players with agents because they either couldn’t afford or simply didn’t want to pay the agent’s commission—typically 10% of a player’s salary. Instead, they targeted players without agents to save money, often dealing directly with athletes who were willing to negotiate their own deals.
But now? That loophole is gone. Since the agent’s fee is coming out of the player’s pocket, teams can freely engage with agents without worrying about additional costs. This will shake up how teams recruit players and may make life much tougher for those trying to go the “no agent” route.
How Teams Will Be Affected
-More Access to Represented Talent
With no financial penalty for working with agents, teams of all budgets can now communicate freely with player representatives. This means that even small-market teams will have direct access to a larger pool of players—many of whom they might have previously ignored due to agent fees.
-More Competition for Players with Agents
Since every team can now comfortably approach agents, competition for agent-represented players may increase. More teams making offers means higher demand and potentially better deals for players who have representation.
-A Shift in Negotiation Strategies
Previously, teams had to factor in the agent’s commission when budgeting for a player’s salary. Now, with that cost off their books, some teams might use this as leverage to negotiate lower salaries, arguing that the player is already taking on an extra financial burden.
Will It Be Harder for Players Without Agents to Get Jobs?
Absolutely! Here’s why:
-Agents Control Market Access
With teams now more willing to work with agents, there’s little incentive to seek out players who handle their own deals. Players without agents will have to work much harder to get their name in front of teams.
-Fewer Direct Negotiations
Some teams used to prefer signing players without agents because it allowed them to negotiate more favorable deals. Now, since teams can approach agents freely, they might skip over unrepresented players altogether.
-The Risk of Being Overlooked
Agents have relationships with teams, and they actively push their clients to the right markets. Players without agents will struggle to compete with represented players who have someone consistently advocating for them.
Other Possible Ramifications
-More Players Signing with Agents
Players who previously didn’t want to sign with agents to avoid splitting their salary may rethink that decision. With the new rule in place, having an agent could be the difference between getting a job and being left out of the market.
-More Transparency in Deal-Making
Since players will now directly pay their agents, there may be more awareness about agent fees and commission structures. Players will likely demand better services from agents since they’re the ones footing the bill.
-Potential for Lower Salaries
Some teams might use this rule change to justify lower salary offers, knowing that the player now has to cover an additional cost. Players will need to negotiate carefully to ensure they aren’t losing out financially.
The FIBA agent fee rule is a game-changer for overseas basketball. It removes a financial barrier that kept some teams from working with agents, meaning more teams will now sign agent-represented players while making it tougher for players without agents to get jobs.
For players, the days of going overseas without an agent may be coming to an end. If you’re trying to build a career in overseas basketball, having the right representation is more important than ever.
Need help navigating the overseas market? At SJM Consultation, I help players understand the overseas basketball landscape and connect with the right opportunities.
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