By Jean Baptiste Guillot, Partner and Virginie Molho, Counsel

The scope of intervention of sports representative lawyers significantly reduced by the Paris Court of Appeal!

The judgment rendered by the Paris Court of Appeal on October 14, 2021 (CA Paris 4, 13, 14-10-2021, n ° 20/1161) cancels article P.6.3.0.3 of the Internal Regulations of the Bar of Paris which allowed sports attorneys lawyers to exercise the activity of putting players and clubs in touch with each other. Thus, the lawyer, in his capacity as agent, can no longer exercise the activity of bringing players and clubs together, which is a main commercial activity, nor intervene, in the phase of drawing up contracts, before athletes and clubs have been put in touch beforehand by a sports agent.

As a reminder, on June 2, 2020, the Council of the Order of the Bar of Paris had created within its Internal Regulations an article P.6.3.0.3, under the terms of which  "The lawyer may, as a sports representative, exercise the activity of bringing together, against remuneration, the parties interested in the conclusion of a contract either relating to the paid exercise of a sports or training activity. , or which provides for the conclusion of an employment contract for the remunerated exercise of a sports or training activity. A lawyer acting as a sports representative can only be remunerated by his client. This activity must give rise to a written agreement which may, if applicable, stipulate that the player gives a mandate to the sports club to pay in his name and on his behalf to the lawyer, the fees corresponding to his mission. »

Under the terms of this article, sports attorneys can therefore exercise the mission of establishing contact between the parties.

This provision had been strongly contested by sports agents who considered that lawyers could not exercise such an activity. Similarly, for the French Football Federation, the French Rugby Federation and the French National Olympic and Sports Committee, this provision clearly contradicted several provisions of the law of 31 December 1971 on the profession of lawyer and was also contrary to Article L. 222-7 of the Sports Code which reserves the right to exercise the activity of sports agent only to holders of a license issued by a delegated sports federation. Consequently, the FFF had decided to seize the General Prosecutor's Office which, on July 10, 2020, filed an appeal for annulment against the deliberation of the Council of the Order of the Bar of Paris having adopted article P.6.3.0.3.

By this judgment, the Paris Court of Appeal notes that the combination of the provisions of the law of March 28, 2011 (modernization of the profession of lawyer) and of article L. 227-7 of the Sports Code makes it possible to conclude than " only the sports agent, who must obtain a professional license to exercise the role of intermediary, has the power to put the interested parties in touch with the conclusion of a contract relating to the paid exercise of a sports activity or 'training, the sports representative lawyer, for his part, having the remit of representing, within the framework of a mandate, the interests of an athlete or a club when concluding these contracts ».

On the other hand, the Court of Appeal recalls that the activity of putting in contact constitutes a brokerage activity, by nature commercial. It is recalled that any commercial activity carried out as a main activity is prohibited for lawyers. Such a commercial activity can only be exercised by a lawyer on an ancillary basis to his main activity of advice, assistance and representation. However, the Court of Appeal specifies that " putting players and clubs in touch is a main task, essential and prior to the conclusion of contracts, which cannot be considered as an ancillary activity to the negotiation and conclusion of contracts, which necessarily take place after the recruitment of the players ”.

Thus, the Court concludes that the lawyer, in his capacity as agent, cannot exercise the activity of bringing together players and clubs, which is a main commercial activity, nor therefore intervene in the phase of drawing up the contracts, before the sportsmen and the clubs have been put in touch beforehand by a sports agent.

Finally, the Court of Appeal rules on the terms of the remuneration of sports attorneys lawyers. Article P.6.3.0.3 provides for the possibility for the player to mandate the sports club to pay, in his name and on his behalf, to the lawyer the fees corresponding to his mission. However, the Court of Appeal recalls that Article 10 of the Law n ° 71-1130 of December 31, 1971 amended by the law of March 28, 2011 provides in its last paragraph that " the lawyer acting as agent of one of the parties interested in the conclusion of such a contract can only be remunerated by his client ". According to the appeal judges, the provision providing that the attorney lawyer can collect his fees, not from his client, but from the club, which is his client's co-contractor, is a source of conflict of interest. and is therefore completely against the law.

Under the terms of this judgment of October 14, 2021, article P.6.3.0.3 of the RIPB must therefore be canceled in its entirety.

To follow the possible cassation appeal that could be brought against this judgment.

Jean Baptiste Guillot

Jean-Baptiste Guillot

Partner

Jean-Baptiste Guillot handles mergers and acquisitions, strategic partnerships, commercial law, company law and contract law matters, with a particular focus on international transactions for Canadian, British and French companies.

Portraits GINESTIÉ MAGELLAN PALEY-VINCENT 2021

Virginie molho

Counsel

Virginie has acquired a solid expertise in sports law allowing her to support players in the sports industry in all types of legal issues in commercial law, company law, association law and social law applied to sport.