Comments on: The Future of the Sports Agent Business http://www.sportsagentblog.com/2007/07/05/the-future-of-the-sports-agent-business/ Sports Business, Sports Law, Sports Negotiations, NCAA Rules Thu, 01 Dec 2011 15:23:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Andrew Bouthiller http://www.sportsagentblog.com/2007/07/05/the-future-of-the-sports-agent-business/#comment-39109 Andrew Bouthiller Sun, 08 Jul 2007 00:25:34 +0000 http://www.dhpromo.com/blog/?p=561#comment-39109 Jason: That is a very interesting question and I may have to do a little legal research this summer to find out if there is any precedent in case law. Does anyone else know if there has been many legal decisions based on breaches of the Model Rules by agent-lawyers? As I understand it, one of the current positions for sports agency reform deals with the fact that there is very little regulation in the industry, as a whole. I have even read that regulation of the UAAA is sorely lacking. If there isn't much precedent set by the courts, maybe now is the time to do so. However, where will this leave agent-lawyers who will be unlikely to follow the full Model Rules? I have heard petitions for amending certain chapters to make exceptions for agents, but those amendments are not likely to ever see the light of day. Very interesting topic indeed... Found an intesting post at the "Athlete Agent / Sports Agent Regulation" blog that states as of January 24, 2007, approximately 77% of agents in the state of California are in violation of Section 18896 of the California Business and Professions code [http://athleteagent.blogspot.com/2007/01/fully-comply-with-applicable-state-and.html]. Jason: That is a very interesting question and I may have to do a little legal research this summer to find out if there is any precedent in case law. Does anyone else know if there has been many legal decisions based on breaches of the Model Rules by agent-lawyers? As I understand it, one of the current positions for sports agency reform deals with the fact that there is very little regulation in the industry, as a whole. I have even read that regulation of the UAAA is sorely lacking. If there isn’t much precedent set by the courts, maybe now is the time to do so. However, where will this leave agent-lawyers who will be unlikely to follow the full Model Rules? I have heard petitions for amending certain chapters to make exceptions for agents, but those amendments are not likely to ever see the light of day. Very interesting topic indeed…

Found an intesting post at the “Athlete Agent / Sports Agent Regulation” blog that states as of January 24, 2007, approximately 77% of agents in the state of California are in violation of Section 18896 of the California Business and Professions code [http://athleteagent.blogspot.com/2007/01/fully-comply-with-applicable-state-and.html].

]]> By: Jason Wulterkens http://www.sportsagentblog.com/2007/07/05/the-future-of-the-sports-agent-business/#comment-39085 Jason Wulterkens Sat, 07 Jul 2007 18:53:29 +0000 http://www.dhpromo.com/blog/?p=561#comment-39085 Andy: No doubt. I even wrote a mini-thesis paper on just that subject (the plethora of ethical problems facing an attorney-agent). But for as many technical aspects of the Rules that most attorney-agents seem to breach on a daily basis, I wonder how many cases there of repercussions (loss or suspension of license, etc.?) I also know of at least one court decision whereby an attorney-agent's behavior was scrutinized depending on the nature of the business conducted, i.e., the court asked was the attorney acting as an attorney per se, or more like an advisor/negotiator/agent, whereby a somewhat more lenient set of "rules" could be theoretically adhered to. Andy: No doubt. I even wrote a mini-thesis paper on just that subject (the plethora of ethical problems facing an attorney-agent). But for as many technical aspects of the Rules that most attorney-agents seem to breach on a daily basis, I wonder how many cases there of repercussions (loss or suspension of license, etc.?) I also know of at least one court decision whereby an attorney-agent’s behavior was scrutinized depending on the nature of the business conducted, i.e., the court asked was the attorney acting as an attorney per se, or more like an advisor/negotiator/agent, whereby a somewhat more lenient set of “rules” could be theoretically adhered to.

]]> By: Nicholas http://www.sportsagentblog.com/2007/07/05/the-future-of-the-sports-agent-business/#comment-39013 Nicholas Fri, 06 Jul 2007 22:16:21 +0000 http://www.dhpromo.com/blog/?p=561#comment-39013 Putting aside the Model Rules of Professional Conduct, you could analyze this situation from the employment law schema. If the agent were considered an employee of the athlete this "clients clause" would in effect be a non-compete clause. A non-compete clause tends to only hold up in courts for a very short period of time, for a very select region, or not at all. Regardless, I think it would be a stretch to argue that the agent is an employee -- especially an agent-lawyer. Most attorneys advocate and serve clients. They tend not to be the personal employee of an individual (unless of course you are Tom Hagan [Robert Duval] in Coppola's The Godfather). Putting aside the Model Rules of Professional Conduct, you could analyze this situation from the employment law schema. If the agent were considered an employee of the athlete this “clients clause” would in effect be a non-compete clause. A non-compete clause tends to only hold up in courts for a very short period of time, for a very select region, or not at all. Regardless, I think it would be a stretch to argue that the agent is an employee — especially an agent-lawyer. Most attorneys advocate and serve clients. They tend not to be the personal employee of an individual (unless of course you are Tom Hagan [Robert Duval] in Coppola’s The Godfather).

]]> By: Andrew Bouthiller http://www.sportsagentblog.com/2007/07/05/the-future-of-the-sports-agent-business/#comment-39001 Andrew Bouthiller Fri, 06 Jul 2007 20:15:49 +0000 http://www.dhpromo.com/blog/?p=561#comment-39001 Jason: The Model Rules of Professional Conduct also have sections concerning conflicts of interest and solicitation of clients, which are both largely ignored by agent-lawyers. Not to say that a "clients clause" could or could not be enforced, but that is just something to think about... Jason: The Model Rules of Professional Conduct also have sections concerning conflicts of interest and solicitation of clients, which are both largely ignored by agent-lawyers. Not to say that a “clients clause” could or could not be enforced, but that is just something to think about…

]]> By: JONESONTHENBA http://www.sportsagentblog.com/2007/07/05/the-future-of-the-sports-agent-business/#comment-38988 JONESONTHENBA Fri, 06 Jul 2007 17:53:00 +0000 http://www.dhpromo.com/blog/?p=561#comment-38988 I think the key here is to realize that most of the big time sports agents have a very large support staff. Bill Duffy does not represent all of the clients at BDA, just as Arn Tellem doesn't represent all of the players at WMG. A lot of times they are just the brand name in front of these big agencies. For instance, anyone that knows the basketball sports agent scene can tell you that Bob Myers runs basketball for Tellem. Over the last few years he's been the guy doing most of the recruiting and management of Tellem's new basketball clients. Tellem probably shows up to close big deals and throw around his power when necessary. But from what I understand, Myers is the point man for WMG basketball. As well, these big firms have individuals to handle marketing, P.R., Finances, and post career planning. The big agents are kind of like CEO's that just manage the entire process and deligate a lot of things to experts within their organization that they've hired to handle certain processes. *I'm speaking from a basketball perspective. I really only have a cursory understanding of business transactions in other leagues. So things might be completely different for agents in the NFL or MLB. I think the key here is to realize that most of the big time sports agents have a very large support staff. Bill Duffy does not represent all of the clients at BDA, just as Arn Tellem doesn’t represent all of the players at WMG. A lot of times they are just the brand name in front of these big agencies. For instance, anyone that knows the basketball sports agent scene can tell you that Bob Myers runs basketball for Tellem. Over the last few years he’s been the guy doing most of the recruiting and management of Tellem’s new basketball clients. Tellem probably shows up to close big deals and throw around his power when necessary. But from what I understand, Myers is the point man for WMG basketball. As well, these big firms have individuals to handle marketing, P.R., Finances, and post career planning. The big agents are kind of like CEO’s that just manage the entire process and deligate a lot of things to experts within their organization that they’ve hired to handle certain processes.

*I’m speaking from a basketball perspective. I really only have a cursory understanding of business transactions in other leagues. So things might be completely different for agents in the NFL or MLB.

]]> By: Jason Wulterkens http://www.sportsagentblog.com/2007/07/05/the-future-of-the-sports-agent-business/#comment-38978 Jason Wulterkens Fri, 06 Jul 2007 16:56:30 +0000 http://www.dhpromo.com/blog/?p=561#comment-38978 Are clauses like that even enforceable? I know that for attorneys under the Model Rules of Professional Conduct that one cannot contractually limit whom one may represent in the future. But not every "agent" is a licensed attorney, obviously. Are clauses like that even enforceable? I know that for attorneys under the Model Rules of Professional Conduct that one cannot contractually limit whom one may represent in the future. But not every “agent” is a licensed attorney, obviously.

]]> By: Andrew Bouthiller http://www.sportsagentblog.com/2007/07/05/the-future-of-the-sports-agent-business/#comment-38961 Andrew Bouthiller Fri, 06 Jul 2007 13:43:13 +0000 http://www.dhpromo.com/blog/?p=561#comment-38961 This is certainly an interesting idea, Paul. A quick way to make a name for yourself as an agent is to create new, unique, and effective contract clauses that benefit your clients. I can certainly see a "clients clause" similar to the one you describe being placed into a contract in the future. Of course, this clause would have to be full of contigencies to protect the agent's livelihood if certain events took place (injury, cut from team for disciplinary problems, etc). As of right now though, I feel the same way Darren does. I personally would want to be able to give a personalized experience to each and every one of the clients I would have. However, I would probably never sign such a clause because of the myriad of variables involved. This is certainly an interesting idea, Paul. A quick way to make a name for yourself as an agent is to create new, unique, and effective contract clauses that benefit your clients. I can certainly see a “clients clause” similar to the one you describe being placed into a contract in the future. Of course, this clause would have to be full of contigencies to protect the agent’s livelihood if certain events took place (injury, cut from team for disciplinary problems, etc). As of right now though, I feel the same way Darren does. I personally would want to be able to give a personalized experience to each and every one of the clients I would have. However, I would probably never sign such a clause because of the myriad of variables involved.

]]> By: Darren http://www.sportsagentblog.com/2007/07/05/the-future-of-the-sports-agent-business/#comment-38934 Darren Fri, 06 Jul 2007 05:20:22 +0000 http://www.dhpromo.com/blog/?p=561#comment-38934 I never want to overwhelm myself with more clients than I can handle, but I also would never agree to a binding clause that limits the amount of players that I can represent. I never want to overwhelm myself with more clients than I can handle, but I also would never agree to a binding clause that limits the amount of players that I can represent.

]]> By: Jay Belzer http://www.sportsagentblog.com/2007/07/05/the-future-of-the-sports-agent-business/#comment-38927 Jay Belzer Fri, 06 Jul 2007 04:52:04 +0000 http://www.dhpromo.com/blog/?p=561#comment-38927 Pure and simple a clause (and most defiantly an official rule) would never work. There are just to many holes and it in of itself would undermine the agent. There is a handful of agents out there whom sign top draft picks year in and year out. The reason is because most highly rated players choose to go with agents whom have experience with top pick contract negotiation as well as a legitimately established client base. These agents ( i.e. Rosenhaus, Dogra, Condone, France) have no reason to ever put in such a clause. Furthermore, for an agent trying to make the leap in representing a first rounder what would be the benefit... you get the one great guy and then you cant represent anyone else? Your first rounder shatters his leg 10 weeks in, you pick up your guaranteed commission and now your screwed cause you just lost your key player, your client base is almost nonexistent, and you haven't been recruiting anyone because of your 'clause'. In a business like this, nobody is going to limit there client base... ever. Pure and simple a clause (and most defiantly an official rule) would never work. There are just to many holes and it in of itself would undermine the agent. There is a handful of agents out there whom sign top draft picks year in and year out. The reason is because most highly rated players choose to go with agents whom have experience with top pick contract negotiation as well as a legitimately established client base. These agents ( i.e. Rosenhaus, Dogra, Condone, France) have no reason to ever put in such a clause. Furthermore, for an agent trying to make the leap in representing a first rounder what would be the benefit… you get the one great guy and then you cant represent anyone else? Your first rounder shatters his leg 10 weeks in, you pick up your guaranteed commission and now your screwed cause you just lost your key player, your client base is almost nonexistent, and you haven’t been recruiting anyone because of your ‘clause’.

In a business like this, nobody is going to limit there client base… ever.

]]> By: pauls http://www.sportsagentblog.com/2007/07/05/the-future-of-the-sports-agent-business/#comment-38920 pauls Fri, 06 Jul 2007 03:53:30 +0000 http://www.dhpromo.com/blog/?p=561#comment-38920 Jay I think you misunderstood what I was saying, I wasn't saying it would be a rule, that is way far off from what I meant. But a clause can be put in when representing big time players, 1st rounders not low tier or even middle tier talent. You said it best there is no loyalty in this business, so why not try your hardest to keep your players happy, and it is easier to do that when you can put all your focus on a small number of clients. Jay I think you misunderstood what I was saying, I wasn’t saying it would be a rule, that is way far off from what I meant. But a clause can be put in when representing big time players, 1st rounders not low tier or even middle tier talent.

You said it best there is no loyalty in this business, so why not try your hardest to keep your players happy, and it is easier to do that when you can put all your focus on a small number of clients.

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