Player agents face prosecution in South Africa for collusion

South Africa's Competition Commission has referred the South African Football Intermediaries Association (SAFIA) and 36 of its members to the Competition Tribunal for prosecution of fixing prices and trading conditions.

The Competition Commission revealed this in a statement on Tuesday. Investigations by the Commission revealed that 36 parties used SAFIA, the body of sports agents for soccer players and coaches, for collusion, reports Xinhua news agency.

SAFIA negotiate transfer fees and contracts on behalf of players and coaches.

"A Commission investigation has revealed that SAFIA and its members agreed to charge football players and coaches a standard 10 percent commission fee when negotiating and concluding, on their behalf, new contracts, transfer contracts, and renewal contracts with football clubs," said the commission.

They also colluded to charge soccer players and coaches a standard 20 percent commission fee when negotiating and concluding, on their behalf, new commercial contracts and renewal of those contracts with sponsors.

"The Commission is seeking an order declaring that SAFIA and its members contravened the Competition Act. The Commission also wants SAFIA and its members to cease from engaging in this conduct and similar conduct in future. The Commission is seeking an order declaring that each of the 37 parties be held liable for the payment of the maximum fine allowable in terms of the Competition Act."

The Competition Commission in July 2015 received a complaint from SAFIA against the South African Football Association (SAFA). This was after FIFA instructed SAFA to reduce the 10 per cent soccer agents' commission to 3 per cent. SAFIA blocked this attempt through a court interdict. The Competition Commission then launched an investigations.

--IANS

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