The Risk of Naivety and Abuse relating to commercial management in Football and Sport

There is a real risk to talent and sportspersons, particularly in football, when it comes to the commercial management of a player’s affairs. The risks are caused by the innocent naivety or in some cases even abuse by the player’s commercial representatives and agents. 

These are risks that both player and representatives ought to consider when appointing or making decisions for and on behalf of sportspersons. Parties should ensure they are taking the proper advice before entering legally binding agreements.

Footballers dedicate their lives to their sport, focusing on their training, performance, and career progression. As a result, leaving the management of their commercial image, financial deals, and personal affairs to their agents and representatives. While this delegation is understandable, it creates an environment where coercion, control, and financial exploitation can occur—often without the player even realising. It need not be sinister, but the negative impact on a player’s wellbeing and finances are the same.

We see a number of cases involving footballers and talent that relate to improper advice and poor financial record keeping where we have to try and resolve disputes that have arisen from poor decision making and unpick past deals. 

Footballers in particular are prone to this issue and are treated differently because of their status and playing days.  

We find it common to see players who have little awareness of the implications of deals they have been put into who come to us to ask for help. More often than not their realisation comes when they have tried to enter another commercial deal but have been unable to because of earlier unfair terms restricting them; or when their careers are winding down and their contracts are no longer as lucrative for them cashflow wise and they need to look to offload their assets.

We also see players are more susceptible to being taken advantage of because of their status as sports stars. Success attracts people and when a player has a lucrative contract with high cash flow, it is not uncommon to see them with an entourage, consisting of agents, advisors, friends, and family all living off of the footballer’s name. 

A top athlete is a brand in itself. It can be exploited just like any other brand or business and therefore proper professional advice is very important for the wellbeing of the player and their family. A 2018 PFA-commissioned study found that 52% of retired players reported financial difficulties in the first five years after stopping playing.

For many people this can be hard to believe given the huge amounts players can make during their playing days, but it is a sad reality and direct result of poor financial planning. Their superstar status then makes it more difficult to protect players from dispute because their creditors and commercial partners are often unforgiving as they believe the player is still cash rich and can afford it.

As of January 1, 2024, the Football Association (FA) introduced the Football Agent Regulations, replacing the previous Working with Intermediaries Regulations. Under these new rules, individuals must obtain a FIFA Football Agent Licence by applying through the FIFA Agent Platform, passing a ‘test of good character and reputation’, and undergoing a criminal record check. The registration fee for this process is £500. It is a straightforward process and these changes have made it significantly easier to qualify as an agent, leading to a rise in players appointing friends or family members as their representatives. While this can create a sense of trust and familiarity, it also introduces major risks, especially when those representatives lack the expertise to manage contracts, sponsorships, and financial interests effectively.

More often than not, bad deal making is simply down to innocent nativity of representatives. We see many footballers who are represented commercially by family members and friends. This highlights the importance of taking proper financial and legal advice which is very important to safeguard the player’s wellbeing. 

Some of the key risks we find include:

• Unfavorable Contract Terms – Without proper legal oversight, players may unknowingly enter into contracts that limit their earning potential, tie them to unfair obligations, or fail to protect their long-term interests.
• Poorly Managed Commercial Deals – Many agents not only negotiate player contracts but also handle image rights, sponsorships, and endorsement agreements. When agents lack commercial experience, players can be locked into one-sided deals or miss lucrative opportunities or have their IP exploited without receiving the proper remuneration.
• Loss of Control Over Career Decisions – Because clubs, sponsors, and service providers take instructions from the player’s appointed representative, an agent can exert control over financial, personal, and professional decisions, sometimes without the player’s full understanding or consent. This can lead to exploitation, financial mismanagement, or even career-damaging choices.
• Risk of Coercion and Manipulation – In some cases, players may feel pressured to agree to certain deals or business arrangements because their agent, often a friend, family member, or long-time associate, exerts influence over them. This can result in decisions that serve the agent’s interests more than the player’s own.
• Independent Advisors Taking Instructions from Agents – One of the most dangerous and overlooked risks is when players believe they are receiving independent legal or financial advice, only to discover that the advisors are actually taking instructions from the agent rather than the player themselves. Sometimes there are referral agreements in place. This can undermines the entire decision-making process and can lock players into agreements that do not serve their best interests.

Why Professionals Who Advise Players also Need to Be Aware

This risk is not just for the players themselves; lawyers, accountants, financial advisors, and club executives who deal with footballers also need to be alert to the dangers of coercion and control.

If professionals are approached by an agent or representative, they should:

• Be aware to the reality of undue influence that can be exerted over a player and carry out an appropriate risk assessment before taking instructions.
• Ensure they are receiving direct instructions from the player and not just relaying the wishes of an agent.
• Assess whether the player is fully aware of and understands the deal being negotiated.
• Encourage independent legal and financial advice for major career or commercial decisions.
• If necessary, arrange for separate representation for the agent and the player.

Too often, professionals unknowingly become complicit in bad deals by assuming that the agent (often a family member) is acting in the player’s best interests.

Ensuring Informed Decision-Making

To protect themselves from these risks, footballers and representatives must take a proactive approach to their representation and career management:

1. Seek Independent Legal Advice – Players should always consult with a specialist lawyer before signing any agreement. A legal expert ensures that contracts are fair, aligned with the player’s interests, and free from hidden risks.
2. Vet Agents and Representatives Carefully – Regardless of personal relationships, footballers must ensure their agent has industry experience, a strong reputation, and the ability to secure the best deals. Choosing representation based solely on trust can lead to career-limiting mistakes.
3. Maintain Oversight – Players should remain actively involved in key career and financial decisions. Even if they delegate responsibility, they should always review contracts, seek external advice, and ensure their best interests are being protected.
4. Ensure Control over personal affairs – Players should always have access to their own bank accounts and be aware of their financial situation. A good accountant that specialises in sport and media is strongly advised.

A Risk That Extends Beyond Football

This issue is not unique to football. Athletes, musicians, actors, and other high-profile individuals face similar dangers when appointing unqualified or self-serving representatives. Many trust their agents to handle everything, only to later discover they have been misled, exploited, or locked into disadvantageous contracts.

The trends we are seeing highlight the importance of taking proper advice. Whilst there are sad stories of players being mistreated, sometimes disputes can be avoided simply through proper planning. It is a part of good commercial management to seek the proper support and advice on commercial deals.

It is strongly advised that both players and representatives take the proper financial and legal advice before committing to commercial contracts. 

How Ai Law Can Assist

At Ai Law, we have a focus on Brand Protection within the Sport and Media industry. We have experience in acting for and safeguarding footballers, entertainers, and high-profile individuals from the risks associated with commercial deal making. Our acting in cases can extend to the representatives themselves for the good of the talent to ensure the proper due diligence is carried out before committing to binding contracts.

Our services include:

• Comprehensive contract reviews and negotiation to ensure fair terms and long-term career security.
• Strategic commercial advice on sponsorships, endorsements, and image rights.
• Independent legal oversight to safeguard against bad deals, financial mismanagement, and agent manipulation.
• Dispute Resolution.

We also work with professionals—lawyers, accountants, and advisors—who engage with footballers and other talent, helping them navigate complex representation issues and ensure players’ interests are truly being protected.

Contact Ai Law today for more information.