How FIBA’s Regulatory Change May Affect Players and Agents Alike

[1]

The International Basketball Federation (FIBA) is a non-profit organization that establishes the official rules and regulations governing relationships between members of the global basketball community.[2] Headquartered in Mies, Switzerland, FIBA oversees 212 National Basketball Federations globally and organizes international competitions like the FIBA Basketball World Cup and the Olympic Basketball Tournaments.[3] The FIBA Internal Regulations are the primary source governing FIBA-certified agent services.[4] The regulations specifically outline the essential requirements and procedures of becoming a certified FIBA agent, the rights and obligations of these agents, and the accessible dispute resolution mechanisms.[5]

Basketball Arbitration Tribunal

In 2007, FIBA established the Basketball Arbitral Tribunal (BAT), an independent organization that provides players, agents, coaches, and clubs a means of resolving contractual disputes via arbitration.[6] FIBA created the BAT to hold parties who breach contracts accountable and provide relief through a unique arbitration system.[7] FIBA encourages parties interested in settling disputes through the BAT to include the specific arbitration clause outlined in the FIBA regulations in their contracts.[8]

The BAT operates independently from FIBA and is comprised of a president, vice president, and eight arbitrators who are appointed to disputes on a case-by-case basis.[9] The BAT is governed by Swiss law, and arbitrators make decisions using the legal concept “ex aequo et bono,” which loosely translates to “what’s fair or equitable.”[10] Once an arbitrator decides the outcome of a case, monetary awards are typically issued.[11] The awards are final and binding, and failure to honor them may result in FIBA sanctions, including monetary fines, a ban on the registration of players for a club, withdrawal of a FIBA agent’s license, etc.[12]

The Change

FIBA regulations regarding agent fees differ from those of the National Basketball Association (NBA) in several ways.[13] FIBA agent fees are limited to 10% of a player’s contract, while NBA agent fees are capped at 4%.[14] The method of payment is also different.[15] NBA agents receive payment directly from their clients, whereas FIBA agents have historically received payment from teams.[16]

However, on December 5th, 2024, FIBA introduced a notable regulatory change prohibiting agents from receiving payment for services from anyone other than their clients.[17] The change is an attempt by FIBA to promote transparency, strengthen player-agent relationships, and eliminate potential conflicts of interest.[18] Nonetheless, the new rule comes with significant implications for FIBA agents, and industry-leading agents have expressed their direct opposition to the new regulation.[19]

Ramifications

In response to widespread backlash, FIBA has postponed the enforcement date from February 1, 2025 to July 1, 2025.[20] One concern agents have about the change is that it essentially creates an additional obligation for players to compensate their agents appropriately for services.[21] This duty would take their focus away from basketball, and failure to fulfill it could put players at risk of serious consequences. Historically, teams were subject to BAT claims for failing to pay agent fees; however, now that players may be subject to similar claims, it’s uncertain what consequences would be imposed on players who fail or cannot fulfill the BAT awards.

Another concern about the change is that players will see a decrease in net income. Because teams are no longer responsible for paying agent fees, they may refuse to consider them when compensating players, resulting in lower pay after agent fees.[22] Aside from the obvious issue here, the lower pay could also dissuade players from using agent services, leaving them at risk of ending up with unfavorable contracts.[23] As concerned agents continue to oppose the new rule and advocate for their players, it will be interesting to see how FIBA proceeds.

Jacob Goldstein (staff writer) is a 2L at Villanova University Charles Widger School of Law, where he is also a member of the Sports Law Concentration and the Philanthropy Chair of the Sports Law Society. As a basketball enthusiast, he plans to pursue a career in player representation and hopes to use his legal skills to assist athletes navigate the professional sports world.

References:

[1] Markus Spiske, Unsplash.

[2] “What We Do: ABOUT FIBA.” What We Do | About FIBA, about.fiba.basketball/en/organization/what-we-do. Accessed 20 Mar. 2025.

[3] Id.

[4] Documents - FIBA 3X3, fiba3x3.com/en/documents.html. Accessed 20 Mar. 2025.

[5] Id.

[6]  Heiner , Kahlert. “The Basketball Arbitral Tribunal (BAT).” Jus Mundi, jusmundi.com/en/document/publication/en-the-basketball-arbitral-tribunal-bat. Accessed 20 Mar. 2025.

[7] Id.

[8] Id.

[9] “Basketball Arbitral Tribunal: The Definitive Guide for Players, Agents, Coaches and Clubs.” Global Sports Advocates, LLC, www.globalsportsadvocates.com/library/basketball-arbitral-tribunal.cfm. Accessed 20 Mar. 2025.

[10] Id.

[11] Id.

[12] Id.

[13]  Tarca, Kevin. How Do Agents Make Money?, 8 Nov. 2020, www.kevintarca.com/post/how-do-agents-make-money.

[14] Batansky, Adam. “Behind the Scenes: 2023 NBA Agent Salaries Revealed.” The Sports Economist, 24 Oct. 2024, thesportseconomist.com/behind-the-scenes-2023-nba-agent-salaries-revealed/.

[15] Supra, Tarca.

[16] Id.

[17] FIBA Rule Update: Players Must Pay Agents Directly, 18 Jan. 2025, basketnews.com/news-218100-fiba-rule-update-players-must-pay-agents-directly.html.

[18] Id.

[19] “European Agents Opposed to New Changes in FIBA Regulations.” Eurohoops, Eurohoops, 22 Jan. 2025, www.eurohoops.net/en/euroleague/1774722/european-agents-opposed-to-new-changes-in-fiba-regulations/.

[20] Bydzovsky, Pierre, and Serge Vittoz. “New FIBA Rule on Payment to Agents.” Lexology, Charles Russell Speechlys, 4 Feb. 2025, www.lexology.com/library/detail.aspx?g=95732d39-e6c0-43d4-be17-055cdce65472#:~:text=This%20change%2C%20detailed%20in%20the,of%20the%20agent%2Dplayer%20relationship.

[21]Mabunda, Sindiswa. “Examining FIBA’s Rule Change and Its Effects on Africa’s Basketball Ecosystem.” Forbes, Forbes Magazine, 28 Jan. 2025, www.forbes.com/sites/sindiswamabunda/2025/01/28/examining-fibas-rule-change-and-its-effects-on-africas-basketball-ecosystem/.

[22] Id.

[23] Id.