Comments on: Professional Responsibility And Ethics http://www.sportsagentblog.com/2007/11/21/professional-responsibility-and-ethics/ 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: SportsAgentBlog.com - I Want to be a Sports Agent » Blog Archive » Review of Attorneys As Athlete-Agents by Mark Doman http://www.sportsagentblog.com/2007/11/21/professional-responsibility-and-ethics/#comment-64285 SportsAgentBlog.com - I Want to be a Sports Agent » Blog Archive » Review of Attorneys As Athlete-Agents by Mark Doman Thu, 07 Feb 2008 18:03:29 +0000 http://www.sportsagentblog.com/?p=843#comment-64285 [...] There is a bunch of info. about potential conflicts of interest, but I have gone in depth about that topic in the past. [...] [...] There is a bunch of info. about potential conflicts of interest, but I have gone in depth about that topic in the past. [...]

]]> By: Darren Heitner http://www.sportsagentblog.com/2007/11/21/professional-responsibility-and-ethics/#comment-56014 Darren Heitner Fri, 23 Nov 2007 21:36:55 +0000 http://www.sportsagentblog.com/?p=843#comment-56014 As an agent, you are very far from business partners. Basic agency law (which I have not yet taken, but have read enough to understand the basics) makes the athlete the principal and the agent as...the agent. While agents represent athletes and those athletes are the agents' clients, those clients control the relationship at all times. Agents and players are never on an equal footing, and thus, they are never "basically business partners." In fact, there may be heavy restraints against an agent and his clients going into business with one another. You do not need to get signed waivers all the time, though. If you look back to my post, you are not necessarily acting as a lawyer, even if you have a law degree and passed the bar. I have spoken to quite a few professionals about this stipulation. "there definitely is a possibility that an agent can argue that she is operating outside of the realm of “attorney”. But all she has to do is offer some legal advice, and she may be bound by the ethical requirements promulgated by the MRPC." How often does an agent offer legal advice to its clients? Almost every athlete goes to an independent lawyer if he/she runs into any legal issues that need to be dealt with. Agents try to stay out of this area. Does the liability exposure greatly exceed the benefits? I'd claim otherwise. I believe that top tier athletes prefer to go with an agent that has a legal background and has jumped through the hoops (passed the bar exam) in order to show that he is well versed in the law. I also think that more athletes will request agents with law backgrounds in the future. Fixed fee and cheaper billable hours may not necessarily be the answer...but I plan to look into that as well. Interestingly enough, I just took a break from reading up on Model Rule 1.5, which concerns fees. As an agent, you are very far from business partners. Basic agency law (which I have not yet taken, but have read enough to understand the basics) makes the athlete the principal and the agent as…the agent. While agents represent athletes and those athletes are the agents’ clients, those clients control the relationship at all times. Agents and players are never on an equal footing, and thus, they are never “basically business partners.” In fact, there may be heavy restraints against an agent and his clients going into business with one another.

You do not need to get signed waivers all the time, though. If you look back to my post, you are not necessarily acting as a lawyer, even if you have a law degree and passed the bar. I have spoken to quite a few professionals about this stipulation.

“there definitely is a possibility that an agent can argue that she is operating outside of the realm of “attorney”. But all she has to do is offer some legal advice, and she may be bound by the ethical requirements promulgated by the MRPC.”

How often does an agent offer legal advice to its clients? Almost every athlete goes to an independent lawyer if he/she runs into any legal issues that need to be dealt with. Agents try to stay out of this area.

Does the liability exposure greatly exceed the benefits? I’d claim otherwise. I believe that top tier athletes prefer to go with an agent that has a legal background and has jumped through the hoops (passed the bar exam) in order to show that he is well versed in the law. I also think that more athletes will request agents with law backgrounds in the future.

Fixed fee and cheaper billable hours may not necessarily be the answer…but I plan to look into that as well. Interestingly enough, I just took a break from reading up on Model Rule 1.5, which concerns fees.

]]> By: Alec http://www.sportsagentblog.com/2007/11/21/professional-responsibility-and-ethics/#comment-55916 Alec Fri, 23 Nov 2007 11:44:03 +0000 http://www.sportsagentblog.com/?p=843#comment-55916 If the agent thing doesn't work out, then passing the bar exam is the fall back position. But as you poit out, the written consent waivers are the issue. As an agent you are basically business partners, as the more moey you make for your client, the more you make for yourself. As your client's lawyer, your obligations are basically a constant conflict of interest with your position as agent, requiring signed waivers all the time. If you fail to do this and it goes to court, you will lose everything you made from that client, plus damages. The law firm of Bain, Gilfillan & Byrne lost $25mm in such an occasion. Even if you set up a chinese wall or have outside counsel, your liability exposure greatly exceeds the benefits. The bar isn't going aywhere. If you still want to pass the bar and try to rep players, you'll need to work on a fixed fee plus a cheaper billable hour rate, something that may not be all that atractive to late roud picks. If the agent thing doesn’t work out, then passing the bar exam is the fall back position.

But as you poit out, the written consent waivers are the issue. As an agent you are basically business partners, as the more moey you make for your client, the more you make for yourself.

As your client’s lawyer, your obligations are basically a constant conflict of interest with your position as agent, requiring signed waivers all the time. If you fail to do this and it goes to court, you will lose everything you made from that client, plus damages. The law firm of Bain, Gilfillan & Byrne lost $25mm in such an occasion.

Even if you set up a chinese wall or have outside counsel, your liability exposure greatly exceeds the benefits. The bar isn’t going aywhere.

If you still want to pass the bar and try to rep players, you’ll need to work on a fixed fee plus a cheaper billable hour rate, something that may not be all that atractive to late roud picks.

]]> By: Darren Heitner http://www.sportsagentblog.com/2007/11/21/professional-responsibility-and-ethics/#comment-55790 Darren Heitner Thu, 22 Nov 2007 17:30:38 +0000 http://www.sportsagentblog.com/?p=843#comment-55790 Not taking the bar exam is actually not preferable in my mind. In fact, why go to law school at all if you do not plan on passing the bar? If that's the case, read up on some Contracts Law, Arbitration, Labor Law, etc. and be content with that. But if you complete law school, you may as well at least attempt to pass the bar. As Emmett said, it adds status and it allows you to fall back on a big paying profession in case you do not end up being as successful in the sports agent industry as you may wish. Not taking the bar exam is actually not preferable in my mind. In fact, why go to law school at all if you do not plan on passing the bar? If that’s the case, read up on some Contracts Law, Arbitration, Labor Law, etc. and be content with that. But if you complete law school, you may as well at least attempt to pass the bar.

As Emmett said, it adds status and it allows you to fall back on a big paying profession in case you do not end up being as successful in the sports agent industry as you may wish.

]]> By: Emmett Jones http://www.sportsagentblog.com/2007/11/21/professional-responsibility-and-ethics/#comment-55788 Emmett Jones Thu, 22 Nov 2007 17:17:02 +0000 http://www.sportsagentblog.com/?p=843#comment-55788 @ Alec What's wrong with taking the bar exam...that's what I did. Being an actual lawyer is a great way to get out and make some money until your can break into the agency business. It also adds a lot of status to your person. Not that getting your J.D. isn't great, but it takes too long to describe that to people. Just saying you're Attorney _____ is a lot easier. @ Darren good luck with tackling all of the model rules. Obviously you'll have to know all of them for class, but is a big undertaking nonetheless. I look forward to your future posts. @ Alec
What’s wrong with taking the bar exam…that’s what I did. Being an actual lawyer is a great way to get out and make some money until your can break into the agency business. It also adds a lot of status to your person. Not that getting your J.D. isn’t great, but it takes too long to describe that to people. Just saying you’re Attorney _____ is a lot easier.

@ Darren
good luck with tackling all of the model rules. Obviously you’ll have to know all of them for class, but is a big undertaking nonetheless. I look forward to your future posts.

]]> By: Alec http://www.sportsagentblog.com/2007/11/21/professional-responsibility-and-ethics/#comment-55787 Alec Thu, 22 Nov 2007 16:53:03 +0000 http://www.sportsagentblog.com/?p=843#comment-55787 If you're going to law school & are planning om being an agent, the choice is obvious: DON'T TAKE THE BAR EXAM If you’re going to law school & are planning om being an agent, the choice is obvious: DON’T TAKE THE BAR EXAM

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