Part 2:
Jorge Mendes, front, watches a Real Madrid game with Cristiano Ronaldo in 2013. Photograph: Helios de la Rubia/Real Madrid via Getty Images
This appears to make the world’s most celebrated football intermediary “super‑agent” in breach of Fifa’s agents regulations, which remain in force.
Regulation 19.8 states: “Players’ agents shall avoid all conflicts of interest in the course of their activity.”
Regulation 29.1 imposes an obligation on clubs not to pay any part of a transfer fee to a player’s agent, and specifically prohibits the agent “owning any interest in any transfer compensation or future transfer value of a player”.
Mel Stein, chairman of the Association of Football Agents in England, argues that agents can represent a player and be a broker in his transfer, if efforts are made to avoid a conflict. However, he says: “What is not acceptable is seeking to earn money from both ends of a transfer without ensuring that there is no conflict. I believe that third-party ownership makes that impossible to achieve.”
Mendes and Gestifute declined requests for an interview and did not respond to specific questions about his involvement in the third-party ownership funds and the apparent conflict of interest with his duties as an agent. Fifa would not provide an answer to whether an agent such as Mendes, who is also involved in third‑party ownership, is by definition acting in breach of their regulations.
A spokeswoman for Fifa said in response to that question: “We cannot provide comments based on a hypothetical situation. The disciplinary committee decides on a matter after analysis of all the specific circumstances pertaining to a case.”
World football’s governing body is believed never to have brought any proceedings against any club or person in relation to third-party ownership funds, which clubs are prohibited from allowing to “influence” them, and there is not understood to be any investigation into the activities of Mendes.
The prospectus seen by the Guardian illustrates, with coloured pie charts, Mendes’s startling dominance of Portuguese football. Famously, he is always said to have brokered his first significant deal in 1997, the move from Portugal’s Primeira Liga club Vitória Guimarães to Spain’s Deportivo La Coruña for the goalkeeper Nuno Espirito Santo.
Mendes, seen smiling by players’ sides ever since, has always been said to have accumulated a huge share of deals, and this document sets it out explicitly, that from 2001-2010, Mendes had “unparalleled success in the Portuguese transfer market”.
José Mourinho is unveiled as Chelsea manager in 2004, with chief executive Peter Kenyon alongside him. Photograph: Tom Jenkins/Guardian
Mendes, it says, conducted transfers worth 78% of Sporting Lisbon’s total earnings of €88m (£70m) in that decade. At Benfica, the figure is cited as 51% of €107m (£85m) in transfer deals. Porto exported most of Mourinho’s 2004 Champions League-winning squad – including
Paulo Ferreira (£13.2m) and Ricardo Carvalho (£19.85m) – to Chelsea, whom Mourinho had joined as manager with Kenyon as chief executive. Further deals included Pedro Mendes (£2m), who went to Tottenham Hotspur; Deco, sold to Barcelona in a €21m (£17m) swap deal with the midfielder Ricardo Quaresma; then Maniche to Dinamo Moscow and the 31-year-old Nuno Valente, who joined Everton for £1.5m. Mendes is stated to have conducted 70% by value of Porto’s transfers between 2001-10 – €238.4m (£189m) worth of deals, out of €340m (£270m).
In total, Mendes is said to have conducted 68% by financial value of all the deals done in the whole decade by Portugal’s top three clubs: €362.2m (£287m) of players sold, out of €535m (£425m) “transactions” concluded in total by the clubs.
There are some in Portuguese football who see this dominance by one agent as unhealthy, reflecting concern expressed in the CIES/CDES report to Fifa of the transfer market’s “oligopolisation” by a few powerful intermediaries. Mendes represented or brokered the transfers of most of Portugal’s national team, and acted for Carlos Queiroz, who was the side’s coach from 2008 to 2010.
The Guardian asked Portugal’s football association, the FPF, whether Mendes’s dominance as illustrated by the document and his representation of so many players and coaches gave any cause for concern. A spokesman replied: “The Portuguese FA is not aware of the documents you mention and has no comments to make on this matter.”
Sporting Lisbon have recently had plenty of comments to make. The club’s new president, Bruno de Carvalho, has denounced as a
“menace” and “monster” the funds to whom majority stakes in almost the club’s entire squad were sold before he was elected in March 2013 and he vowed to end the practice. Sporting’s latest annual report listed eight players, as of 30 June this year, majority or 50% owned by three of the companies in the structure advised by Kenyon and Mendes: Quality Football Ireland; Quality Football Ireland III (in which Chelsea appear to be involved), and Quality Football Fund Ireland.
Sporting have told the Guardian that some of these stakes in players were bought by the funds advised by Mendes and Kenyon when the players’ contracts with Sporting were renewed, with Mendes negotiating as their agent. The stakes appeared to De Carvalho’s regime to have been sold as a condition of the players renewing their contracts, which the club argues was a “distortion” and a conflict of interest.
A Sporting spokesman, discussing Mendes’s status as an agent and his involvement with third-party ownership funds, said: “This is a situation that Sporting does not agree with. Mainly in situations where the conditions for the renewal of the players’ contracts depended upon the grant from Sporting of those economic rights.”
Mendes and Kenyon did not respond to the Guardian’s question about whether economic rights in players were sold to the funds they advise as a condition of a player, represented by Mendes, renewing his contract. However, Sporting said they have been told by the Quality Ireland companies that Mendes does not play a role in their management.
Having risen, and moved, with football’s escalation to a business of multibillion-pound money flows and shifting centres of spending, Mendes now bestrides the game, from delivering Di María to a flapping Manchester United, to advising funds buying stakes in Portuguese players he also represents.
Mendes’s first major international deal came in 2002 when he brokered the midfielder
Hugo Viana’s transfer from Sporting to Newcastle United, who paid £8.5m for a 19-year-old who would start just 16 Premier League matches for them. Mendes’s break into English football was achieved in partnership with the Manchester‑based agency Formation, who then claimed Mendes broke their agreement when sealing his truly breakthrough deal the following year:
Ronaldo’s move from Sporting toUnited.
Kenyon then moved to Chelsea, where he and Mendes negotiated Mourinho’s hiring as the new manager, the signings of Carvalho and Ferreira to join him from Porto, and Tiago Mendes, from Benfica. Formation sued in 2005, claiming their agreement required Gestifute to split the agents’ fees from Chelsea, of €2.9m (£2.3m).
In 2011 Formation announced they had settled the case, with the payment by Gestifute, net of legal costs, of €205,000 (£163,000).
In 2007, Mendes negotiated the £27m purchase by United of Anderson, from Porto, and, for £25.5m from Sporting Lisbon, Nani, whose previous agent, Ana Almeida, complained she had been sidelined. The same summer, Mendes broke through to Real Madrid, when the Spanish giants signed the central defender Pepe for €30m (£24m) from Porto.
Mendes’s influence at Real greatly extended when he negotiated
Ronaldo’s £80m move from United in 2009, then Mourinho’s arrival as the coach in 2010. Di María, signed from Benfica for £21m, and Carvalho, from Chelsea for £6.7m, were signed immediately, Fábio Coentrão, for £25m from Benfica, the following year, all deals brokered by Mendes.
Bebé with Manchester United in 2010. Photograph: Lee Smith/Action Images
In 2010 came his most enduringly curious deal:
United’s signing of Bebé, from Vitória Guimarães, for £7.4m. The player, who had a troubled childhood and grew up in care, never played in any club’s academy, unlike Nani, Anderson, Ronaldo and the rest, played in the Homeless World Cup, then scored goals in one season in the Portuguese third division, before playing pre-season friendlies with Guimarães.
The club told their members that Mendes bought 30% of Bebé’s economic rights just before the move – rather undermining the argument that the sale of economic rights enables clubs to hold on to players – and, with a 10% agent’s fee, was paid €3.6m (£2.9m) of the £7.4m from United. Gonçalo Reis, Bebé’s agent, complained to the PFP and Fifa that Mendes had poached the player; later Portuguese police announced an investigation into the transfer, but no results of it are known and Mendes has faced no disciplinary charges.
Emilio Macedo, the Vitória president, said approvingly of Mendes: “This country owes him a lot because he handles large transfers and brings money into the country.
This is like an export.”
Bebé, said by United to have been recommended by their scouts in Portugal but never seen by Ferguson, started not a single Premier League match, then was loaned to Besiktas, where several Mendes-represented players have gone, then the Portuguese clubs Rio Ave and Paços Ferreira, before Benfica bought him this summer, spending £2.4m.
Real Madrid’s James Rodríguez arrived from Monaco for £71m.Photograph: Lavandeira Jr/EPA
Last year, Mendes was called to help with the new Monaco project financed by the Russian billionaire Dmitry Rybolovlev, and he organised the arrivals of Rodríguez, Falcao, Carvalho, and the midfield force João Moutinho, from Porto. This summer, Rybolovlev decided to restrain his spending and Mendes brokered the sale of Rodríguez to Real Madrid and the loan of Falcao to United on deadline day.
Mendes is said now to be involved with the Singapore businessman Peter Lim, who is buying an indebted Valencia. The club’s coach, appointed after two seasons at Rio Ave, is Nuno Espirito Santo, Mendes’s first ever client, back when, a nightclub owner, he ventured into deal-making in the beautiful game.
Football has changed vastly since, becoming an industry in which super‑rich Premier League clubs and Spain’s top two are bulk buyers of talent. Mendes, agent, transfer intermediary, adviser to anonymous investors buying stakes in players, “partner” to smaller clubs, “leverager” of relationships in rich ones, has ridden that change. He has made a huge, unthinkable amount of money, and made himself indispensable, too, as an orchestrator, an oiler of the wheels.