In the summer of 2021, the Parliament adopted Act LXXXVII of 2021 amending Act I of 2004 on Sports in connection with the regulation of the activity of players’ agent (hereinafter referred to as the “Act”), which is intended to create a legal framework for the hitherto unregulated players’ agent activities.
Based on the authorization set out in the Act, the Government adopted on 7 January 2022 the Government Decree No. 4/2022. (I. 7.) on the activity of players’ agent (hereinafter referred to as the “Decree”), which contains the detailed rules for the notification for and the registration of the activity of players’ agent.
Furthermore, the Decree of the Minister of Human Resources No. 1/2022. (I. 7.) EMMI on the administrative service fee payable for the notification of the activity of players’ agent (hereinafter referred to as the “Fee Decree”) was published in the Official Gazette of 7 January 2022, too, regulating the amount and payment of the administrative service fee payable in connection with the reporting.
Both Decree and Fee Decree shall enter into force on the 31st day following its publication.
Notification, registration, and deletion
The obligation of notification of the activity of a players’ agent is laid down in Act I of 2004 on Sport (hereinafter referred to as the “Sports Act”), but its detailed procedure is contained in the Decree. According to this, the notification must be made to the sports federation via the electronic platform provided on the federation’s website.
The notification of the players’ agent shall include the name and the registered office of the players’ agency with which the players’ agent is in a legal relationship, and the players’ agency shall attach to the notification a certificate of exemption from public debt, too.
In the case of a valid notification, the federation will register the players’ agent as of the day the notification is received, which, if registered, is also the starting date of the right to pursue the activity of the players’ agent.
Within 15 days of the notification, the federation shall publish on the Internet, free of charge and without restriction, up-to-date and publicly accessible to anyone, the legally required public interest data of the person entitled to act as a players’ agent.
The Fee Decree sets the fee for the notification at HUF 100.000, -, which must be paid by bank transfer. The fee is non-refundable in the event of refusal, rejection or withdrawal of the notification, or in the event of termination or cancellation of the procedure and is payable again in the event of a renewed notification.
Changes in the data recorded in the notification must be reported by the players’ agent.
If the federation deletes the players’ agent or the players’ agency from the register, it shall immediately notify the players’ agent or the players’ agency.
Control of activity
In case the federation finds the activity of the players’ agent to be unlawful, it shall draw the attention of the players’ agent or the players’ agency to restore the lawful operation.
The Decree also fixes the amount of the administrative fine defined as a sanction in the Sports Act. In the case of failure to notify data changes, the amount of the administrative fine for a players’ agent is up to HUF 100,000, for a players’ agency up to HUF 500,000, while in the case of violation of the rules on the commencement and continuation of the activity of players’ agent, and on the operation of the players’ agent and the players’ agency, the amount of the administrative fine for a players’ agent is up to HUF 500,000, and for a players’ agency up to HUF 5,000,000.
The maximum period of disqualification from the activity of players’ agent is 12 months.
In addition, as part of the control, the players’ agency shall submit a report to the federation by 31 July of each year at the latest on its activities in the period from 1 July of the year preceding the submission of the report or, if later, from the date of registration, to 30 June of the year in which the report is submitted. The required content and form of the report are laid down by the federation in its rules on the activity of players’ agent. The rules are published on the official website of the federation.
Reimbursement and education contribution
The Decree lays down the details of the reimbursement to be paid to the players’ agency set up by the sports federation and contains an annex setting out the type of sports professional performance on which the reimbursement is based and the amount of the reimbursement.
The rate of reimbursement is determined by applying different multipliers to each defined sports professional performance, while the calculation is based on the average nominal gross national earnings of wage and salary earners in the previous year, as published by the Central Statistical Office (KSH) in the year preceding the year in question.
The reimbursement shall also be paid regarding employments and transfers carried out after 31 December 2021 on the basis of players’ agency contracts concluded before the entry into force of the Decree.
As a contribution to the education of the professional athlete, the national sports federation shall pay 70% of the commission and 50% of the reimbursement to the professional athlete’s legal guardian or, if the professional athlete is of full age, to the parent, adoptive, step- or foster parent named by the professional athlete, by bank transfer within 15 days of receipt.