Does Yuzuru HAVE to sign with an agency? What benefits does he get? Better news coverage (I think he gets lots of that already though...)? Funding? What does signing with an agency even really mean?
It is hard to answer this question without some confirmation.
Has he signed with a new agent?
Has he changed agent recently?
Who is the new agent and when did he sign?
It is said he intend to do a formal press conference about this soon which would indicate someone - likely the sporting agency who brokered this deal wanting to buy their PR team/firm some time to weigh-in public opinions so to come back with a favourable response that can seamlessly spin this into a good positive story to ease any concerns or negative reactions back home. It is very much like a PR/political campaign, where they will likely to work/tutor those involved to ensure everyone will come out smell like roses, especially if they belong to the same agency.
The funding issue is an interesting one. I have always assumed someone in Hanyu's situation has to rely a lot on public funding but since he wasn't even a top 3 favourite last year in Japan, and the funding process usually take a year to get assign upon proven result. Hanyu would appear to be in a very vulnerable position last year, maybe this situation have also been taken into consideration by the new sport agency to approach him and convince him making these big changes.
Sport is a business. All businesses are driven by profit. Allow me to go a bit off tangent here, but the role of the agencies can give clues to why certain decisions and results are the way they are and not what they always appeared. While it is the skaters and coaches who are the public faces of the sport, but their power are limited without someone bridging everything and everyone together, to propagate the 'happenings' while the 'talents' are protected from any ugly side of the business or decision making. We often discuss how politics can impact the sport, but that cannot be achieved without someone carry out these influences. It is likely an agency that has monopolised the market like IMG can substantially shape and cast big influence over the sport, something that's are rarely ever get addressed on these boards. In show business, the most powerful people are not the movie stars, but the talent agents/agencies, then the studio, then someone from production, likely the producers and director. Figure skating industry is not exactly like the show business, but they shares remarkable similar characteristics.
When one hit the big leagues like Hanyu has done and achieved success on the podium, someone in the sport stand to lose apart from his direct competitors and their federations. There are commercial interests such as sponsorship/endorsement deals, it impact other agencies and their customers, skating shows, franchises etc.. all on the line. The only way they don't loose out is by signing him and likely to prep a good attractive package to ensure he stays with them.
Why is show biz agency like CAA in Hollywood described as 'powerful'? What do these agency do exactly to justify their % of someone's earning?
Actually a lot - IF they are a good agency.
Apart from able to bargain better pay for their 'star', they have better collective bargaining power because they represent so many talents. They should be capable to generate better quality and higher volumes of possible sponsorship/endorsement deals and establish multiple revenue streams for their talent. They should be capable to proactively putting together big deals that can groom talent like Hanyu into major sport stars and eventually international superstars. If it works, there are at least 10 years of lucrative billing because of this this young man - provide he continue to deliver of course.
Agencies like these are likely to plan out career road maps years ahead for their brightest stars. Surround them with the best people to work with. They are likely have good relationship with the rule makers, the key decision makers, the money people that are important and influential to the sport. The agencies are likely to have a media savvy PR team that can readily spin public opinions to generate good publicity for their clients, their work etc. These include public internet forums, blogs believe it or not. Basically a good agency should able to offer a fully managed services to ensure their clients are well taken care of while maximise their earning potentials. That may sound all good in theory, but reality is something else.
The dark side of agency business is tricky. Usually when an organisation has grown so big and powerful - power can lead to corruption and ethics is hardly a priority. It is common to find major agencies constantly trying to undermine rival agencies and their clients for the interest of their own representation (who has plausible deniability since they 'know nothing'), and actually look to take clients off the rival agencies. Any leading skater winning or being dominant that are not represent by the said agency is considered bad for the business and and they will likely trying to undermine them in order to prop their own clients.
A large scale agency often can get sponsorship deals where they have multiple candidate suitable for, but this can lead to potential in- fighting among the account executives. With multiple candidates qualifying for the same endorsement deals, it can leads to senior management selectively sabotage their own clients internally, when certain new star/deals can deem more profitable for the agency compare with an existing talent on a long contract with a lower commission rate agreed. No surprise who they'd favour more to in the interest of profit. Conversely, 2 new endorsement deals are available, one is more prestigious for charity, the other is more lucrative financially, the agency s likely to coax the talent to accept the more lucrative one, or at worst, don't even tell the talent about the other opportunity at all and keep the freebie for someone other candidate that is not doing so well can enjoy bit of a free publicity etc.
If anyone has ever been approached by head hunters in the past, you'd know they would aim to become your best friend, confidant, the person you intimately disclose your job dissatisfaction to. Issues you don't normally discuss with your friends or colleagues are brought up. Sensitive matters such as to do with your pay, complaints about colleagues, personalities conflicts, describe your work environment/conditions, how you wish to grow your career, who in the industry you admire and want to work with, and pass a lot of gossips through the grapevine to reel you into a 'false circle of trust'. A small problem brought up in meeting 1 is likely to have been developed into bigger problems by the 2nd or 3rd meeting, and likely by the 4th meeting they'd convince you that you deserve much better pay and treatment, and they have got exactly the right 'opportunity' to help you to grow, how much more 'valuable' you are to them, or that they suddenly have some exclusives roles available and that they think you deserve first 'look in'because you are just so 'special' and 'right for it' etc. ie/ Lot of ego stroking and open your eyes to new possibilities, to make you aware that actually your current situation is not that ideal after all since your rivals are getting this and that which you are not getting etc...
Positives of an agency service.
- They can genuinely help you. If you come from a humble place, talented and hungry like Hanyu, and you happen to be blessed from a rich federation, an agency can stand to make alot of money off them through you. If they do their job well, all your problems will suddenly disappear. They don't even need to rely on federation finance when the commercial revenues kicks in. The earlier they sign you, the more favourable terms it is for the agency, but the more they risk given there are more work to get you started (30% commission possible). I assumed Hanyu would have been signed by someone already even before winning the Junior Championship, probably by a local representation. Big agencies would certainly have approached Hanyu after the previous contract expires, or if they really believe in him, they might have bought out his old contract to sign him on (10% is desirable, though 15% - 20% is more likely for freshers). If that is the case, then there likely to be some sort of tie in period and exclusivity agreement, but overall should offers better financial security and better managed services including training. If he is not getting this, he should change agency asap.
- In this sport, money can be earned outside competitions, in skating shows, merchandising, book deals, public appearances, sponsorship deals, exclusives, ads campaigns etc. A good agency will take care of all that for him.
- If someone in your industry admire you and want to work with you, they can also do this via their agency to your agency. If the two belong to the same agency, this would make things easier to negotiate and manage. Usually candidates stand to earn approximately 10%-30% pay rise or incentives from any major change. The broker fee are charged to the organisation that buys or/and the one ask for this deal. The talent pays nothing.
- Good agencies usually come with a good PR team. Or they are suppose to. They should be great at spinning stories that able to represent their clients well. Contacts, Experience, Knowledge, Foresights, and putting across a convincing persuasion are the bread and butter for these type of agencies apart from good basic business competencies. Before they approach any candidate, they are likely to have known everything about their target already, and likely to know how to grow their career better than the talent themselves.
Negatives.
It is easy to became a pawn in this game of sweetness and deception. In the long run, a talent's interests can be undermined in favourable of agency interests driven by profit and internal politics.
- The candidates can get exploited to gain information about their trade, their business links, inner circle, friends, colleagues, disclose sensitive and confidential information 'off records'. These information can all became valuable assets to the agency that can be eventually lead to a new sale in the near future. In some ways, an established agency collect everyone's little secrets which they can use to exploit in the future. Knowledge is power after all.
- If your agency also represent your rivals, there could be some major conflict of interests. It is possible you may find yourself in direct competition with someone else within the same agency for the same roles, but due to internal politics, agency decide shaft you in favour their other client, and put you in the less desirable position. This may not apply to Hanyu now, but in the future who knows. If he suddenly have an injury, not able to produce the good result and has become a liability when JSF prefer to put their financial backing to someone else, he might find himself stuck in a rut. Maybe it has happened to someone else already, with this new coaching arrangement that might have been previous reserved for someone else in the agency but is now available to Hanyu.
- Your current employer want to get rid of you or wanting to put their backing behind someone else, so they pay an agent to head hunt you to go elsewhere 'better' so the company doesn't have to pay compensation for firing you while make both party look bad to in the process. The cost of hiring is someone new is cheaper and more attractive than firing. The agency also stand to earn from selling you off to someone else. The more turnover the industry, the better it is for the business as far as the agency is concerned.
- A rival organisation want to get rid of their strongest rivals - So they hired a head hunter to poach the key player/ team away from their rival to ensure they gain competitive advantage while crippling their rival in the process. This is usually publically frowned upon so they need to strategize some sort 'clever' publicity campaign to go on a media offensive to sell this change to the public/ industry. They can usually do this via some sympathetic stories or spin some other distraction that has nothing to do with the real issue at hand. Politicians are very good at playing this game, exploit the gullible public and the sensationalised nature of mass media.
- It is likely once a candidate get tied to a system, it can mean less freedom overall to pick and choose how much they want to do and allowed not to do, particularly on jobs/roles that does not fit within the agency financial interest. Charity work suddenly become a liability unless they can mince the heck out of it to generate good publicity for their 'talent'.
Yazuru has said to have done over 60 shows over last season, it implies
1) He is very affordable
2) He need the money
3) He need the ice time
4) Someone is very good at managing this for him.
5) If he isn't signed with anyone then, and the agent is not getting their % typically derived from placement like these, they are probably kicking themselves. It hurts their business when they could have represented him and earned their %.
Considering all the above. It is only a matter of when and with who Hanyu sign with somebody if he isn't already. He need to be aware though, even working with a well known /reputable agencies have great benefits, he need to becareful that his personal interests are not overshadowed by the agency's financially interests to make off him. A contingency plan should be in place if it doesn't work out with the current arrangement.
Hanyu is probably Japan's biggest commercial dream figure skating star since Mao. If he is not signed already by now, then clearly someone is not doing their job properly.
Hope it answers your question. If not, I apologise for the long rant. Once every blue moon, once i start, it is hard to stop
, but nevertheless:
). The only thing I would venture to add is that, while most students may benefit more from the drawing teacher's methods, there may be some that find the watercolor teacher's way more instructive. And, to extend the analogy with skating further (which I've privately vowed to do more explicitly from here on, what with my partiality for meandering about Neptunian mollusks and such 
