Howes Etc have devised the introduction of a new-style fee structure designed to:
- Lower the cost to the player
- Incentivise Howes Etc to regularly upgrade the player’s income for mutual benefit
Current commission rates for player management agency range up to 10% of annual salary. The average commission rate in both Britain and Australia being 7.5%.
Howes Etc have originated a fee structure based on an acceptable lower percentage of 5% of the basic contract for all-year-round personal service.
Thus the key factor is that this new-style fee structure recognises that Howes Etc have to play a significant role in the management of the player’s development to maximise earning potential, ultimately for the benefit of both the player and the agency. Howes Etc are therefore under intense pressure to improve the player’s income capacity rather than sit in the comfort zone of capitalising on the player’s established salary.