This article is posted in the hope that it provides athletes with a way to more accurately assess the skills of an offer from various types of agents.

For example, anyone doing any research on me will quickly see that I have a strong background in the law, so one would expect my skills to be strong apropos contracts, negotiation, drafting, professionalism and presentation.  But does that make me a good agent?  Is the agent who is a former player without as much formal education and experience necessarily a weaker negotiator than me? Is he less well-versed in the nuances of contract law?  Can he pick out a future star as well as me simply because he has played professionally for many years?  Am I any less able to find the diamond in the rough simply because I spent my formative working years in Court rather than on the rainy, muddy and wind-swept soccer pitches of England?

I will readily concede that one of my weaknesses on which I have worked very hard is identifying young players who may have what it takes to play professionally at some point in the future.  Unearthing young talent is a key component of any agent’s practice.  But there is a vast difference between noticing a player who is playing well in that game and in spotting someone who has the raw materials and can go on to forge a career.  When coupled with the myriad factors involved in making it professionally then, this can suddenly seem a daunting task.

My solutions have been two-fold.  Firstly, there is no substitute for actually getting out there and watching as many games as possible.  DVDs only take one so far.  Being present during the game is vital.  The more games one watches, with one’s agent hat on rather than punter, the more I have been able to build up an accurate picture of youth soccer and, over time, been able to make more accurate and informed judgments on players.

Secondly, being humble enough to ask the opinion of others – namely, coaches.  My company currently represents a number of coaches, some of whom are experts in youth development.  I have done a good job for them in the past and they are delighted to receive DVDs of players on whom I would like their feedback.  It can really mean the difference between investing time and resources into a player who may never make it and, on the other side of that chain of reasoning, between having a reliable and experienced 2^nd opinion to back up my own thoughts on the player.

So, what can a former player who is now acting as an agent offer?  You can expect him to have a lot more contacts earlier on his career than someone like me who had to build everything up from the bottom over a period of time.  He may or may not have the same presentation skills and may place less emphasis on the quality of the written work.  He will most likely have greater access to better young players earlier on due to the fact he has just finished his playing career and is making the transition from playing to representation, so if you’re an unknown young player then he may already have a complete portfolio of young players and be less willing to take a chance on you.  Whilst there is the prestige of being represented by a former big name, does this mean that you will get the personal touch you as a player want and deserve?  Equally, there is no guarantee that someone without a playing background will give you the requisite attention.

I’ve had players come to me from other agents with stories about what took place which led to them leaving.  I have no doubt that the player is telling the truth and, equally, that the other agent was doing his job properly and professionally but it didn’t work out based on a number of factors…but mainly chemistry.  What works for one player and one agent may not be appropriate for the agent and the second player.  Likewise, I’ve had 1 or 2 of my clients ask if they could leave the agency or speak to other agents.  There is never bad blood, because as much as this is a personal relationship based on trust, it’s also a business deal and there’s no sense in preventing a client from looking elsewhere.

For me, the absolute bottom line is chemistry with my clients.  If we’re not getting along well, then I will have no hesitation in terminating the contract and allowing both parties to walk away.  I love this game too much, and am deeply fortunate to be able to earn a living doing something I love, to allow it to be hindered by a client with an attitude problem.  If it’s not working out, as sometimes happens, then there’s nothing wrong with walking away.  Neither party should be unhappy when the excitement of building a successful career together can be incredibly fulfilling.

In summary, I would say that there are really no sure things and perhaps this article has achieved the opposite of what I set out to accomplish – to pose more questions than provide answers!  But I hope it’s helped somebody, somewhere, if they are weighing up which type of agent to appoint.

Max Eppel is a soccer Players’ Agent Licensed by The FA. His company is Max Eppel Soccer Agency LLC and has offices in Newport Beach, CA and London, UK.  For further information click on www.maxeppelsocceragency.com.

What: 7th Annual Relay Worldwide Sports Sponsorship Symposium by SportsBusiness Journal and SportsBusiness Daily

When: Wednesday, Sept. 30 – Thursday, Oct. 1, 2009

Where: New York City, NY at the Marriott Marquis

Keynote: Uli Becker, CEO and President, Reebok International

Panels:

Sept. 30

• 7:30 a.m. – Registration
• 8:30 a.m. – Welcome and Opening Remarks
  • Richard Weiss, Publisher, Street & Smith’s SportsBusiness Journal/Daily
  • Tim Mauer, CEO, Relay Worldwide
• 8:45 a.m. – The Recalibration of Sports Sponsorships and Event Marketing
  • Rich Lehrfeld, VP of Global Sponsorship Marketing, American Express
  • Tim McGhee, Exec Director of Corporate Sponsorships, AT&T
  • Dan McHugh, VP of Media, Sponsorship, and Activation, Anheuser-Busch
  • Scott O’Neil, President of MSG Sports
  • Matt Pensinger, Senior VP of Marketing Services and Consulting, Relay Worldwide
  • Mark Waller, Senior VP of Marketing and Sales, NFL
• 9:45 a.m. – The Rebranding of Gatorade: Inside the G Launch and Defending Against Competition in the Sports Drink Market
  • Sarah Robb O’Hagan, CMO of Gatorade
• 11:00 a.m. – The New Realities of Marketing: The Chief Marketers’ Perspective
  • Phil Clement, Global CMO and Communications Officer, Aon
  • Rory Finlay, Senior VP and Global CMO, Beam Global Spirits & Wine
  • Mark Ingall, Managing Director of Global Strategic Media and Marketing, Citigroup
  • Stewart Mitchell, Senior VP and Chief Strategy Officer, Sharp Electronics
  • Tony Pace, CMO of Subway
• 12:00 p.m. – Lunch
• 2:00 p.m. – Anatomy of the Procter & Gamble/NFL Sponsorship
  • Jason Dial, architect of the deal.
• 2:45 p.m. – Marketing to Hispanics: Leveraging Their Passion for Soccer and Other Sports
  • Marco Lopez, Senior Director of Relay Worldwide’s Hispanic Marketing practice
• 4:00 p.m. – The Ever-Changing Athlete Endorsement and Talent Procurement Business
  • Steve Battista, Senior VP of Branding, Under Armour
  • Frank Mahar, General Counsel, Genesco Sports Enterprises
  • Mike Principe, Managing Director, BEST
  • Ryan Steelberg, CEO, Brand Affinity Technologies
• 5:00 p.m. – Reception

Oct 1.

• 8:00 a.m. – Continental Breakfast
• 8:30 a.m. – Keynote Speech
• 9:15 a.m. – How the Sports Media Business and Media Buying are Changing Before Our Very Eyes
  • Ray Warren, EVP and Chief Revenue Officer, Comcast SportsNet
  • Jeff Flemings, Senior VP and Global Head of Social, VivaKi
  • Eric Fernandez, Senior Partner, MediaLink
  • Ed Erhardt, President, ESPN Customer Marketing and Sales
• 10:45 a.m. – Lifelock Makes its Mark in Sports
  • Todd Davis, CEO, Lifelock
• 11:30 a.m. – Up Next: A Futurecast on the Challenges in Sports and the Changes in Consumer Behavior
  • Rich Luker, CEO, The Luker Co.
  • Jerome Conlon, President, Brand Frameworks
  • Ben Kline, Chief Strategy Officer, Leo Burnett
  • Scott Hess, VP of Insights, Tru
  • Pat O’Connor, President, Minor League Baseball
• 12:30 p.m. – Conference Conclusion

Cost: $1,495 for SportsBusiness Journal paid subscribers. $1,650 for non-SportsBusiness Journal paid subscribers. Must register by September 23. Click here to register.

Notts County FC, the oldest league club in the world and currently competing in League 2, has been taken over “Manchester City style” by a middle eastern consortium. This allowed millions of pounds to be injected into the club to strengthen the squad and bring them up the the premiership, and eventually, compete with the Big 4.

So just what has Notts County done so far to make this step? First, they appointed Sven Goran-Eriksson, the former England manager as their director of football. Having such a renowned and respected figure in this position is surely going to attract some high quality players to the team. Next up, they have brought in Kasper Shmeichel, son of former Manchester United legendary keeper Peter, who is a pretty handy keeper himself. Ironically, he was on the books of Manchester City not too long ago. Although not getting a game at Manchester City, Kasper is a cut above the other keepers in his division.

Add to the fact that they have recently signed former Tottenham/Arsenal/England defender Sol Campbell, who at 34 has decided that despite offers from bigger clubs, to sign a 5 year deal with the club worth about 40,000 pounds a week. Sol has stated that he expects to play premiership football again before he retires, indicating Mr Eriksson has reassured him of the club’s ambitions. With most players on around 500 pounds a week base salary, Sol will have a lot to live up to in League 2.

Notts County currently sits on top of the table without conceding a goal, so their plan seems to be working.

If you think that the recent happenings of Manchester City were a one-off, think again. This proposal of injecting millions in football clubs to succeed appears to be growing. Horse Racing may no longer be the only Sport of Kings.

The Premiership offers matches in 211 countries and 575 million different homes that account for the overseas revenue.  One country the league has experienced tremendous growth in is the United Arab Emirates. A broadcasting network in UAE, Abu Dhabi Sports Channel, won the rights to broadcast the games for $319 million dollars, three times the contract paid by Showtime Arabia last year. The Premiere League’s current overseas television contracts were signed in 2007 and expire at the end of 2009. The net worth of the overseas contracts surpasses $1.03 billion dollars, which equates to nearly a third of the leagues television revenue.  Where will the league experience the most growth? China of course! The country currently contains a small market of 20,000 viewers because matches can only be viewed by audiences through pay per view. In 2010, China will offer matches to air for free allowing 30 million potential viewers rather than 20,000. The Premiere league has 97 broadcasting affiliates that it will be negotiating with for the next 4 months.

Ronaldo – £80 million

Kaka – £56 million

Benzema – £30 million

Albiol – £12 million

Manchester City Summer Purchases

Santa-Cruz – £18 million

Tevez- £25 million

Adebayor – £25 million

Barry – £12 million

These are the transfers that have knocked the wind out of the summer transfer window in European soccer. In an economic climate where the world is saving and not spending, Real Madrid and Manchester City have continued to fulfill their reputations as big spenders, and have accordingly purchased the best available talent on the market. No other clubs could compete – the likes of Chelsea and Manchester United (normally high fliers in the market themselves) have had eerily quiet summers with limited transfer activity and it must be partly due to the acquisitions made by City and Madrid.

Manchester City have sourced their funds from Billionaire owners Abu Dhabi United Group. Real Madrid are a different kettle of fish. Madrid should have been made insolvent countless times over the years due to the fact that they tend to spend money that they do not actually have. However, with the King of Spain as a huge supporter (‘Real’ means ‘Royal’), they have had their debts written off by banks who do not dare bankrupt the King’s club.

In either case, these are teams who seemingly have unlimited spending power, without consequence. This is becoming a major concern to the football fan in Europe. How can their team compete or make big signings when the big-guns of Madrid and City continue to dominate a market that was anticipating a deflation of transfer fees, as opposed to the inflation that has actually materialised?

Has the time finally come for the governing bodies to impose transfer expenditure caps? The concept of salary caps has been a much discussed topic in the media and online blogs, and the general conclusion is that they are illegal and very difficult to incorporate – EU law protects individuals against mechanisms that impose restrictions preventing a worker from realising his earning potential. Would a restriction on a club’s ability to spend be capable of circumventing the grasp of EU law however?

Perhaps the governing bodies could come up with a reasonable limit (£20 million?) that a club may spend in a given summer. Maybe it could be £20 million plus whatever revenue that comes from the sale of any pre-existing players of the squad. The restriction could be as simple as one that forbids any club spending money that is not disposable income – my previous post on Southampton FC highlights quite clearly how disastrous the consequences can be for clubs that do not spend within their means. Any measure brought forward that is in the interest of sport might be capable of successful implementation.

In any case, the expenditure of City and Madrid has distorted the market and does not reflect the current state of economic affairs. Is it an overreaction to suggest that something need be done in response to this? Some might be of the view that there is nothing that can realistically be done to stop or regulate the way clubs spend money on transfers. The solution could be simple – clubs should rename themselves ‘Real’….

Drawing on the recent post by Darren in regards to the levels of US state taxes and the effect on player income [ "A Taxing Discussion"], I thought I would look at the tax rates and how they factor into soccer contracts on a worldwide scale.

The talk started with the recent Arsenal singing of Andrei Arshavin and him being upset about having the bulk of his wages taken by the current 40% upper level tax rate in England, after coming from paying only 13% in Russia. He even fired his agent as he was unimpressed with what he was able to deliver [ Arsenal Star Andrey Arshavin Sacks Agent Dennis Lachter]. News gets worse for those making over £150,000 a year as they will soon be paying 50% on their income.

Look at this in comparison to Spain. In an attempt to lure top CEOs to the nation, Spain passed a bill allowing the first five years of your higher tax rate to be cut to an attractive 24%, significantly lower than that charged by their English counterparts. Now look at where Kaka and Ronaldo have recently transferred to. That’s right, Spain. Ronaldo would have lost about £15 million over the life of his contract if he stayed in England. [ Premier League can't compete with low taxes in Spain]

English club Manchester United was linked with player Karim Benzema, who ended up signing with Real Madrid.  Could taxes have played a factor in that deal also?

Another great example is that of player Jermaine Pennant, who recently signed with Spanish team Real Zaragoza. Whilst still earning a fair amount, Jermaine is on the equivalent of £80,000 a week before tax, as his after tax wage is £40,000. His club is happy to foot the tax bill of £9,200 a week as it’s minimal [ Jermaine Pennant's switch to Real Zaragoza earns him '£80,000 a week']. Now picture him still playing in England. Assuming the close to £50,000 wage he is on, he would receive only £25,000 after tax, losing £15,000 a week on what he currently earns.

As previously mentioned, Russia has a low tax rate of 13%, so if you were a decent player who might be able to play at Championship level in England, would you consider a move to Russia for a better pay deal?

Spain is really the only threat to English football, as other major markets (France, Germany, Netherlands, Portugal) are all hovering around the 40-50% upper level tax bracket. [Source]

However it’s the minor leagues that could entice the lesser known players to countries such as the aforementioned Russia, Switzerland (13.2%) and Turkey (35%). Alread,y high profile players such as Harry Kewell and Milan Baros have made the switch to the Turkish League.  Alternatively, players could play in the U.A.E. which doesn’t have any tax at all!

So how can English football stop the exodus and prevent Spain from taking all the quality players?

The most obvious way is to simply equal the net pay as to which is offered elsewhere. Players and Agents alike have caught on about the tax rates and are now using it to their advantage. Players are already asking for their contracts to include the amount they receive after taxes are taken into account.

As it is now easier (and common) for a player to transfer across the world, the inevitability will be that clubs will have to fork out more money.

Why play in the MLS when you can play for Real Madrid?  Beckham joined the Los Angeles Galaxy in 2007, signing one of the biggest contracts in history. Beckham’s contract was worth $250 million dollars for 5 years, salary plus commercial endorsements. At the age of 31, he was earning $1million dollars a week playing in an inferior league where he was guaranteed playing time, plenty of media attention, and served as an icon for American soccer.

David Beckham’s priorities and commitments have been challenged by the media since his shaky return this summer. Despite being a member of the LA Galaxy, Real Madrid, and the England national team, he has remained poised. However, he has made it clear that his main objective at this point of his career is it to stay a part of the 2010 England World Cup squad.

Southampton FC was recently penalized 10 points because they had become insolvent. This is a standard penalty that the Football League imposes on clubs who cannot sustain liquidity. The impact is usually crippling – it is incredibly difficult to avoid relegation to the division below as a result of this penalty.

Normally, I would have little or no objection to this, as it is a duty of any team to ensure financial stability and the protection of long-term well being. The amount of money that is spent in football is ludicrous. This is worsened by the fact that clubs are spending money that they do not actually have. If you spend recklessly (through either transfer fees of players or salaries) and become bankrupt for it, then you get what you deserve in my opinion.

However, something about the Southampton scenario does not smell right. The club is operated by a management company. This is the subsidiary of a parent company. From what I gather, it is the parent company that has gone insolvent, NOT the subsidiary. In English law, every company is considered a separate legal entity. The general rule is that subsidiary companies are not agents of their parent companies. These rules all stem from a case that emerged some two centuries ago – Salomon v Salomon.

With this in mind, I cannot see how the Football League has come to the conclusion it has. In order to impose this penalty, it has basically circumvented the law by claiming that the management company (subsidiary company) and the parent company “are inextricably linked as one economic entity”. However there are very limited circumstances in which the ‘corporate veil’ of incorporation can be pierced and traditionally the courts view these circumstances restrictively and with much caution.

The comments from Southampton FC seem to suggest that an official appeal will be launched and I suspect it will be on the basis that the penalty is illegal for the reasons discussed above:

“We are of the opinion that an incorrect conclusion has been reached. The football regulations do not apply to the circumstances surrounding Southampton Football Club. This is a view shared by the lawyers and advisers to both the club and the administrators.”

However, it is too little too late as relegation to ‘League One’ was confirmed last weekend, meaning the club will be commencing the 2009-2010 season with a 10 point deduction.

More and more clubs are being caught by the overspending that occurs in football. Southampton join Leeds United (Champions League Semi-Finalists in 2001), Luton Town and AFC Bournemouth in the growing list of teams to go bankrupt. The only solution to this ongoing problem is that teams must stop spending beyond their means. The evidence shows that if they continue to spend money they do not have then it will come back to bite them, hard.

Michael Goldman: Can you briefly discuss your role as Manager of Sports Marketing and your background that led to you to joining Volkswagen?

Ben Freidson: My role is to identify potential sports sponsorships that align well with our marketing and communications strategy. Once we enter into an agreement, our emphasis is to try and leverage the sponsorship at all levels of the organization.

My background is in Business and Sports Management. At one time I worked for D.C. United in their corporate sponsorships division. More recently, I was working for a sponsorship activation agency, Cenergy Communications. At Cenergy, I worked with both corporations like Mentholatum’s OXY and Dial’s Right Guard Xtreme on their sponsorships of the Dew Action Sports Tour as well as with professional teams with the Cleveland Cavaliers/Lake Erie Monsters and the Buffalo Bills.

Michael Goldman: Volkswagen of America Inc. recently announced the renewal of their partnership with Major League Soccer and Soccer United Marketing after a successful first year.  What aspects of the partnership’s initial year pushed Volkswagen to seek a multi-year renewal?

Ben Freidson: Throughout the brand, we are focusing on creating conversations with new, broader and more diverse audiences.  Major League Soccer has strong relationships with loyal soccer fans that are aware of the Volkswagen brand and also are familiar with our global commitment to the sport.  This partnership provides our team with a multi-platform vehicle to engage these important US consumers in a whole new way. Our experiential programs and webisode series for last year’s Road to MLS Cup was positively received by fans and generated good online awareness.  We want to do more to engage the fans.

Michael Goldman: Describe the national grassroots programming that Volkswagen plans to develop with MLS and SUM.

Ben Freidson: I can’t get into the specifics of our new grassroots initiatives for the upcoming season quite yet, but I can tell you that we will look to leverage Volkswagen and Major League Soccer assets to showcase the value of our brand in a meaningful way to consumers. Our biggest need is to get consumers more familiar with our product offerings. We have several vehicles that are a perfect fit for the active soccer family and we launched 5 new vehicles last year including the Routan, Tiguan and CC. Event marketing is a great way for us to educate consumers and have a deeper conversation about Volkswagen and our cars.

We will use media, events and the Web to make sure we’re making the right connections, early and often.

In addition to new grassroots initiatives, we will be a sponsor of existing MLS grassroots initiatives including MLS Futbolito and Sueno MLS, which are both fantastic ways to connect with our Spanish speaking fans.

Michael Goldman: MLS is in an expansion mode still, as well as diligently trying to expand its fan base in the U.S.  As MLS grows, hopefully Volkswagen’s presence in the U.S. will grow too as a result of this partnership.  What are the specific areas of growth or demographic additions that Volkswagen is hoping to attain as a result of the partnership with MLS?

Ben Freidson: As the MLS grows its fan base, the partnership generates tremendous visibility with key US consumers including the Hispanic community, families and the endemic soccer fan, all of whom are very important audiences and customers bases for Volkswagen.  Through our activations, consumers have the opportunity to try out new vehicles and see products in person and hands-on in a way that they might not otherwise have experienced.

Michael Goldman: Volkswagen has been a long-time supporter of soccer on a global level.  This partnership shows Volkswagen’s substantial investment and support for soccer in the U.S.  What fraction of Volkswagen of America Inc.’s resources for sports marketing is dedicated to MLS?  What other American sports is Volkswagen involved with?

Ben Freidson: We’re committed to strategic investments in sports marketing because of its ability to deliver strong value messages and build long-term relationships with key audiences. The primary focus of our strategy lies in the sport of soccer however we do have additional sports sponsorships in our portfolio. We are involved in the Chicago and Pittsburgh Marathons in the Midwest region. In addition we are the official automobile of the Washington Wizards and Verizon Center.

Michael Goldman: While Volkswagen is the official automotive partner of MLS, it is also a partner of the D.C. United club.  In addition, the German football club VFL Wolfsburg plays in the Volkswagen Arena.  Do you envision Volkswagen buying the naming rights of a specific MLS club’s stadium at any point in the future?

Ben Freidson: We will continue to explore strategic fits for the brand on a case by case basis. It is great to see soccer specific stadiums launching across the country as it only strengthens the league for the long term.

Michael Goldman: What advice would you give to college students for trying to break into the sports marketing world or other areas related to sports-business?

Ben Freidson: Keep an open-mind to different opportunities such as internships that help you get a foot in the door. Think broadly – brands, agencies, media corporations and teams all need young, well-rounded and diverse team members. Also, while the sports field is exciting to focus on each day, you cannot forget that it’s called “sports business” for a reason.  Especially in these times, working hard to make the connection from program and sports engagements back to communications goals, sales, results and bottom line is critical.  It’s the reason why brands leverage the power of sports.  Demonstrating that you understand the business side well could make you stand out as a candidate.

There are different routes into the sports business field, remember to stay optimistic and display your commitment and passion for making a difference.

UEFA president Michel Platini has said:

“If results are fixed in advance, football has no further reason to exist”

A key component of sport, and perhaps the most essential, is the uncertainty of outcome. Without this, there is no competition, no entertainment and no value in sport whatsoever. It is for the same reason that performance-enhancing drugs are completely prohibited – to preserve healthy competition and to ensure that one competitor is not given an advantage of which the other is deprived.

Perhaps the most famous occasion of match-fixing was in Italy in 2006 where several prestigious European clubs brought the football world to a standstill. Juventus, AC Milan, Fiorentina, SS Lazio and Reggina were found guilty of influencing the football authorities on the appointment of referees to certain games.

It cannot be denied that cheating in sport is completely unacceptable. Punishment for cheating should be severe and should act as a deterrent to prevent future offenses from occurring. However, is the current punishment ruthless enough? Evidently not.

In the summer of 2006 (just weeks after the scandal in Italy came out), the Italian national team won the FIFA World Cup. Many questioned whether Italy should have been allowed to participate in the tournament altogether in light of the revelations on match-fixing in the country.

AC Milan was originally barred from entering the 2006-2007 UEFA Champions League tournament as a result of the scandal. On appeal they were allowed to enter the competition at the Third Qualifying Round stage. They went on to win the tournament that season.

Juventus was forcibly relegated from Serie A to Serie B in Italy. They comfortably won Serie B the next season and have been competing at the top of Serie A ever since. They are also participating in the Champions League again and narrowly went out of the competition in the first knockout round stage.

Fiorentina was entitled to remain in Serie A but were docked 15 points, an amount that would supposedly have the effect of preventing them from qualifying for a European cup the next season. They ultimately finished in sixth place and qualified for the UEFA Cup.

It is clear that the punishments handed out were far too soft and lenient. The above examples merely indicate to any person considering match fixing that it is almost worth the risk of attempting to cheat. If they get away with it, then the outcome is very favorable. If they get caught, the consequences are not going to be too severe. The risk of getting caught does not necessarily outweigh the benefit of getting away with cheating.

The penalties inflicted on persons who cheat in this way need to be far more serious. The outcome must be that the guilty party is completely crippled as a result of the wrongdoing. Are punishments not handed out to deter others from future and similar misconduct? The object of deterrence is not achieved where the outcome of a punishment is that the offending party is not really punished.

In 2005 UEFA said it was planning to implement betting legislation to prevent all players, management and referees from gambling on future games. Furthermore, after this week’s announcement UEFA has said it is launching a gambling investigation unit next season, monitoring 27,000 European matches in both the first and second divisions of each national association.

It is clear however that the problem lies not in detecting where/when match-fixing occurs, but in the punishment that results when it has been established that match fixing took place. Punish the cheating party brutally and ruthlessly, and others will be scared to do the same.