If transfer compensation is USD 3,000,000 and a coach's remuneration is USD 1,000,000, what is the service fee cap for a Football Agent representing an engaging club?

The correct answer provides a breakdown of the service fee cap based on FIFA's regulations regarding the remuneration of football agents. In this scenario, the total transfer compensation is USD 3,000,000, and the coach's remuneration is USD 1,000,000. FIFA regulations stipulate that for the engagement of a player, agents can earn a commission based on a tiered structure.

The tiered structure indicates that agents can charge a higher percentage (5%) on the first USD 200,000 and a lower percentage (3%) on any amount beyond that. This means that for the first USD 200,000 of the coach's remuneration (USD 1,000,000), the agent is entitled to a fee of 5%. For the remainder of the remuneration, which is USD 800,000, the agent earns 3%.

Calculating this, the agent would charge:

• 5% on the first USD 200,000: which amounts to USD 10,000.
• 3% on the remaining USD 800,000: which amounts to USD 24,000.

Thus, following the commission structure outlined by FIFA, the service fee cap for the football agent representing the engaging club is accurately described in