I have been given the opportunity to attend seminars associated with a newly designed course to help students learn more about the Athlete Representation Industry. Run over seven sessions, the course covers areas such as Managing a Client’s Career, Ethical Considerations, Medical and Endorsements to name a few. University students are eligible for funding, making it an attractive proposition for people who are interested in pursuing a career as a Sports Agent.

The first session I attended was in regards to Negotiations and Industrial Relations, which is very topical at the moment considering the NBA has just got out of its lockout and the Australian Football League (AFL) is still resolving its new agreement. The seminar covered areas such as Planning, Contracts and Dispute Resolution. I will now go into further details regarding the areas discussed.

The day started off with a talk from one of the most respected people in the business, Paul Yeomans. Paul had previously worked as an AFL Agent for Stride Sports Management, but has moved into Consulting. Through his business, PMY Consulting, Paul has consulted many top companies, but more importantly the AFL Players Association in regards to its new Collective Bargainning Agreement (CBA). Paul explained that the AFL CBA process is a lenghty one, with there being 8 months between the AFL Players Association first proposing a deal and the AFL countering with its offer.

The current negotiations are quite interesting, with the two sides wanting several different things. The AFL wants to offer a set amount of money in each of the years of the CBA, with the AFL Players wanting a percentage. While both sides want to see the game grow, the AFL Players feel that their monies should not be used to subsidise expansion, an area where the AFL disagrees. There is a very small chance that this will not be resolved, as the clubs are publicly owned, as opposed to the systems that operate elsewhere.

Paul also gave some tips on how to get in to the industry, and a cross section of the roles of the people he employs.

Next up there was a lecture on Negotiations. This included the legal requirements of preparing an agreement, the necessary elements that needed to be included and how the negotiation process works.

An interesting area that was addressed was the process of conflict resolution. The materials provided by the course thoroughly outline the tools in which can help in effectively resolving disputes. The lecture also briefly noted on grievance and industrial action.

In the afternoon, the audience were treated to a lecture by Stride Sports Management GM and current Sports Agent Alex McDonald. The timing of the talk was particularly current as it was the same day as the AFL Rookie Draft, which Alex had attended that morning. Alex’s insight into the contract process was a fascinating one, with him offering examples and challenges he has faced when negotiating with players and clubs. He highlighted the need for constant contact, and to ensure that both sides are satisfied at all times. If anything was to be taken away from the talk it was that communication and knowledge are key.

The extensive reading materials enable students to complete the required assessments with confidence. The major assignments allow students to be creative, with one including drafting an agreement for a player and their sporting association.

The course takes a break over Christmas, but look out for the next post regarding Media, Marketing and Endorsements.

More on the course can be found at their website.

Course Report: Accelerated Sports Management Program. Part 1. from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Source: Herald Sun

A lot of uncertainty came with the introduction of the new Australian Football League (AFL) franchise Greater Western Sydney (GWS). As seen in the previous season with the Gold Coast Suns, players were able to be ‘poached’ from other clubs with the clubs who lost players receiving one or two compensation picks.

The news of Tom Scully defecting from Melbourne, the club who drafted him No.1 overall two years ago, should not be a surprise. There was no way Melbourne was willing to match the $6 million over 6 year deal put forth by GWS, with $2 million being paid in the first year. Many Melbourne faithful were outraged by a player only drafted two years before leaving so easily. But Melbourne fans shouldn’t be hasty at thinking they were the ones left punished.

Melbourne has received two picks in lieu of Scully leaving; a first round pick selection and a mid first round selection. The first round selection will fall after their initial first pick. So if Melbourne receives pick 9 in the draft, it could use this compensatory pick at pick 10. The mid first round pick will be slotted in after the pick of the team who just missed the finals, which is likely to be around 11-15, depending on how teams use their picks. The bonus of these picks is they can be used anywhere between the 2012-2015 drafts.

With this in mind, the 2012 draft is shaping to be a ‘Super Draft’ – a draft stacked with immense talent that will help a club like Melbourne, who is rebuilding for the future. Having a total of three picks in the first round will certainly give the team an advantage over other teams in the same position. Alternatively, having three bargaining chips in trade week will certainly help bringing high quality players from other teams to the club.

Now let’s take a quick look at what Melbourne lost – Tom Scully. Having played 31 games for the club, the midfielder missed several games because of a knee injury; one that Dr Peter Larkins believes may hinder him from playing a full season. Scully had surgery on his left knee before he was drafted, and that injury plagued him this season, allowing him to only play 10 games.

So while many Melbourne fans may be up in arms about the prospect of losing their prized player, it appears things are not as bad as they seem.

Why Melbourne Won Out In The Tom Scully Deal from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

As a football agent, you have a fiduciary duty to act in the best interests of your clients.  But what happens when a player is either released from an NFL team with no other teams willing to sign the player, or the player is just not good enough for the NFL?

Below are the top options an agent is left with in trying to find the best opportunity for his client:

1.     United Football League

Founded in 2009, the United Football League (UFL) offers one-year contracts worth $40,000 (prorated over its eight game regular season) to the majority of its players. In addition to base salary and performance-based bonuses, the six-team UFL also takes care of the housing expenses for its players.  While the financial incentives to send a player to the UFL are not enticing, the six-team league is run almost entirely by former NFL coaches and front office personnel, and thus, the UFL provides an excellent opportunity for a player to gain more NFL exposure.

Furthermore, while the CFL may pay slightly more on average than the UFL, the UFL plays merely eight regular season games, far less than the 18 game regular season of the CFL.

There are several downsides to sending a client to the UFL.  As mentioned above, the pay is generally less than that of the CFL.  In the past, if an NFL team wanted to sign a UFL player, there was a $150,000 buyout clause that was standard in every UFL player contract.   It is uncertain whether the UFL will include this clause in contracts in the future.  Additionally, the UFL is a newer league and is less stable, having had issues with paying bonuses to its players.

2.     Canadian Football League

The eight-team CFL imposes a league-mandated $4.2 million salary cap for each franchise. The league minimum salary is $41,000 as compensation over a six-month season.  This league minimum is scheduled to go up to $45,000 in 2013.  As with the UFL, only a handful of players command six-figure salaries.

The upside of playing for the CFL is it is a stable league that has been established since 1958.  Its former downside, being paid in Canadian dollars, is now a strength due to the fact that the Canadian dollar is stronger than the US dollar.

The downside of playing for the CFL is that most contracts are 2 years with a 1 year option.  If a player does not have a passport, he will need to get one.  Taxes may also pose an issue for the American citizen playing in the CFL.  The first $80,000US made abroad is exempt from US taxes; anything above that will be taxed in the US.  A common misconception is that Canadian’s taxes are higher, but if the player is making league minimum, he would be taxed at 22% in Canada, whereas in the US he would be taxed at 25%.

Another thing an agent has to keep in mind is his client’s position and unique skill. The CFL plays on a much larger field than those in the U.S.  A Canadian football game is played on a 110 yard by 65 yard field, compared to an American field which is a 100 yard by 53? yard field.  The CFL plays with 12 men on each side, with 1 receiver permitted to go in forward motion at the snap of the ball, similar to a rugby player taking a pitch at full speed.  Because of these differences, undersized, smaller players have a greater chance for success in the CFL.

3.     Arena Football League

The Arena Football League operates in the U.S. as a fast-paced indoor version of the football. Currently, most arena players make $400 per game over an 18-week schedule.  Three players on each of the 15 AFL teams are eligible for designation as a “franchise” player. This designation grants these three players a salary of $1,000 per game. Aside from the flat rate payments, the AFL also offers its players financial aid for housing and meal expenses. The AFL, and IFL (if your player cannot get into the AFL) should be your last options.  While there are unpaid semi-pro leagues and start-up paid leagues such as the Stars Football League, those leagues rarely have NFL scouts in attendance.

United Football League, Canadian Football League, or Arena Football League from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

A couple of months ago, nude photos of high profile St. Kilda players were released on the internet. The photos were proposed to be stolen from one of the player’s computers by a 17 year old girl, who cannot be named for legal reasons.

In the midst of this scandal developing, AFL Player Agent Ricky Nixon, who represented some of the players, was negotiating with the girl a resolution that would see an end to this saga.

Flash forward to now and it has been revealed that Ricky spent considerable time with the girl, and there are claims by her that he had a sexual affair with her, which he vehemently denies. Adding to this, it is alleged that he brought illegal drugs to her in her hotel room.

He admits that his relationship with her was ‘inappropriate’, but not sexual.

Video footage has now hit the web showing the girl rummaging through what appears to be his trousers, showing his IDs. Another video shows a man who looks like Ricky in his underwear on a bed.

The girl involved has been questioned by police in regards to breaches in surveillance.

After all of this, the AFL Players Association (AFLPA) had to respond. With Ricky going overseas for business meetings, the AFLPA has decided to hand this matter to an independent investigator to get to the bottom of it.

So the question that arises is should Ricky Nixon, the most prolific agent in AFL be allowed to conitnue operating as an Agent?

In the AFLPA’s statement regarding the matter, they look at certain regulations which an Agent must uphold:

• Not engage in conduct which has an adverse impact on his or her competence to serve in a fiduciary capacity on behalf of his or her clients;
• At all times represents his or her client with a conscientious regard for their personal and professional welfare;
• Not doing anything that is materially detrimental to his or her client; and
• Not acting dishonestly or fraudulently while representing his or her client.

It is easy to see that the first point may have been breached. Having an inappropriate relationship with this girl may cloud his judgment in his clients dealings, considering she was involved in a scandal involving players that he has the duty of representing. While he initially sought her out to settle the matter, his relationship may have provided a conflict of interest.

The rest of the points are hard to gauge without all evidence coming to light. I believe that Ricky was initially acting solely in the best interests of his clients and he has committed an error of judgment on his part, which was inappropriate considering the events that had previously transpired.

Most of his clients have declined to comment on whether they will stay with him until the matter is settled.

I have written on Ricky Nixon previously with posts regarding him located here.

AFL Agent Ricky Nixon in Hot Water from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Baseball

• Some interesting ideas include: increase scholarships, bring back the one-time transfer rule, make a switch to wooden bats, and push the MLB Draft to after the CWS [College baseball still needs major changes].
• Big ATL agents (France – football and Abbott – baseball) will be in attendance [First Ever Brian McCann Celebrity Softball Game Set for 11/13].
• Quite a line from Boras: “If stem-cell research were around, you’d want to tap into that gene pool.” [Scott Boras is making pitch for Johnny Damon's free agency this winter]
• The Arizona Fall League has produced a lot of very successful Major League players [Scout's Diary: AFL Still A Great Secret].

Football

• Surprised that Antonio Gates is not in the top 10 paid TEs? [Under the Cap: Top Ten Tight Ends]
• I also hate the uniforms, but glad to see that NFL execs are taking a peek at the talent [Don't discount the UFL].
• Josh Morgan seems to be taking the news pretty well [Report: Crabtree likely to start for 49ers].

Sports Agents

• Former sports agent, Alonzo “Lon” Monk, was up to some shady business [Ex-Blagojevich aide pleads guilty to corruption].

Shabbat Shalom: Friday Wrap-Up (10/23/09) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

The AFL2, which is a peg below the Arena Football League (AFL), has been playing out its 2009 season while the AFL scrapped its season due to financial issues.  Just last week, the AFL2 had a big announcement that its championship game will be held at the Las Vegas Orleans Arena.  The AFL2 is busy publishing press releases about securing deals, and the AFL is having its name dragged in the mud.  Things are not looking so good for the league that is supposed to be one step up (in talent and payment) from the AFL2.

At the end of May, the AFL seemed to be situated nicely.  Reports that Lynn Swann was behind a Pittsburgh expansion team and that the league expected growth over the next five years (to 24 total teams) seemed very promising for the AFL.  When I read this sentence in ProFootballTalk.com, I no longer felt all that confident:

[Chicago] Rush owner Alan Levin says time has already run out for the league to return next season because there are no players allocated.  Most coaching staffs, although not all, have disbanded.

The AFL already scrapped the 2009 season.  If it does not return for 2010, then I find it hard to believe that it will ever come back in its 2008 form.  This may aid the UFL’s growth, but will continue to leave many football players who wish to play professional ball, out of a job in 2010 and beyond.

Arena Football Lingering from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Players that are accepted to the program partake in a three-month, paid internship gaining experience in areas like communications, membership services, legal, and information systems.  Sports marketing internships are also available through the union’s marketing and licensing arm, NFL PLAYERS.  The pros must go through the same application process that students normally go through to get internships, by submitting an application, resume, cover letter, getting recommendations, submitting a writing sample, and a providing a transcript.  The only qualification…candidates must have played at least one full season in the NFL and/or AFL.  Tom DePaso, current Associate General Counsel and a Regional Director at the NFLPA and former NFL linebacker, participated in the internship back in 1984.  Being his first off-the-field work experience, DePaso said that “I would not be where I am today without having had that experience.”

The internship program isn’t the only way that the NFLPA helps out retired players.  The union holds a career opportunity expo as part of the NFLPA Retired Players Convention in Palm Springs.  The most recent one had eight employers in attendance, including New York Life Insurance Company, Prudential, and The Corporate Playbook.  Retired players can network and find out about employment opportunities from the companies in attendance, as well as have on-site interviews in private areas the expo has provided.  This year’s expo marks the fifth year that this aspect of the convention has been held.

In addition to setting up conferences like the career opportunity expo, the union set up a NFL Player Job Board in 2008 as a resource for retired players to find jobs with employers specifically interested in hiring former professional football players.  New Executive Director DeMaurice Smith has taken a proactive role in aiding former players find jobs.  He recently sent a letter to over 1,000 retired players who own their own companies or work for corporations in Florida, Texas, and California asking for help in finding employment opportunities for other retired players by listing their companies on the job board.  According to the NFLPA website, over 50 retired players have already found jobs using the job board.

While other unions like the MLBPA and NBPA help retired players find post-playing employment, the NFLPA’s efforts are even more necessary as the average career length is about two years shorter.  Retired football players have several options and resources to explore.  Agencies like Darren’s Dynasty Athlete Representation offer post-career guidance for their clients, and players often turn to their agents for help and advice when it comes to finding a new job because they have hopefully formed a trusting relationship over the years.  But the NFLPA’s continuous effort to aid athletes after their playing days are over is a noteworthy action for its players.

Athletes Intern Too from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

In December 2008, the Arena Football League canceled its 2009 AFL season with the intention of reviving the league for the start of a 2010 season.  Since then, Commissioner Ed Policy relinquished his position, but stated that the position of Commissioner will be abolished as a whole in favor of appointing a new person in a new role of CEO.  The AFL apparently remains in business, and wants to be viewed as a business by using a term like CEO over Commissioner.  In fact, a tentative agreement has been struck on a revised four-year Collective Bargaining Agreement.

The deal reportedly reduces costs — including salaries — and helps lend financial stability to the league. And the AFL was also said to be exploring a less-costly centralized business operation model.

“Players are making economic concessions now in return for a share of expected increases in the league’s value and revenue, because the players believe in the future of the AFL,” Richard Berthelsen, AFL Players’ Association acting executive director, said in a statement.

At the same time, this paragraph should worry those who expect the AFL will be coming back soon:

Moreover, the suspension forced teams to lay off nearly all support staff — including ticket and sponsorship sales, media relations, finance and marketing personnel and even people who answer the phones. Most Web sites are now dormant and one team — the Georgia Force — lost control of its URL (georgiaforce.com).

March 2010 is less than a month year away.  Will teams be able to basically build their infrastructures over again from scratch, pay players their salaries, and generate ticket sales in time?  Major League Baseball was able to come back from a partially scrapped season in 1994.  But Arena Football isn’t Major League Baseball..

The AFL’s Future: Sink Plunging Or Swim-Moves? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Unlike most of the Big 4 leagues in the USA, AFL (Australian Football League) contracts aren’t released to the public. Therefore a lot of speculation is created as to who is making the big bucks. Fox Sports has compiled a rough guide through research in the industry as to who are the highest paid athletes in the game. Of course, there a few surprises.

Only 2 players broke the the magic $1 million dollar mark for 2008- Chris Judd and Jonathan Brown. Chris Judd is one of the most recognizable players of the game, and his 5 year deal was the largest contract signed in AFL history when he moved to Carlton at the end of 2007. Jonathan Brown has been a Brisbane player all his career, despite offers from his home state of Victoria.

There is a gap of about $200,000 to the next group of players, which include some of the best Key Position players of the game.

Of the players making over $500,000, most are Key Position players, and are approaching or over 30 years-old (despite the top two being in their mid twenties). If a player is over 30, he can be classified as a veteran, which means only half of his salary counts towards the salary cap, which stands at just over $7 million.

Looking to the future of who will be earning some serious cash, Luke Hodge‘s current deal expires at the end of this year, and he will certainly command somewhere in the $700-800K range. Forward Lance Franklin, 22, will be earning over $500,000 next year, and is touted as one of the most promising players in the game. Expect a deal near $1 million a year for his next contract. Other players with higher earning potential include Gary Ablett Jnr., Daniel Kerr and Nick Riewoldt.

The AFL operates on a rookie pay scale similar to the leagues, so the initial starting salary is around $40,000-60,000. This is quite small considering the average Australian wage is about $50,000.

In comparison to overseas sports these players earn very little, but in terms of Australian sport only Super 14 or cricket players would command higher salaries.

Read the full article here.

AFL Rich List from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Football

• DeMaurice Smith was selected to be the successor to Gene Upshaw as the Executive Director of the NFLPA [Smith elected to head NFLPA].
• One step in the right direction towards bringing back the AFL next year [AFL might be back in '10].
• Devin Hester is about to sport his wings with Red Bull [Hester Is A Flash In The Can].
• Great wrap-up of the early Pro Days [Pro Day Recap - Part 1].
• An agent rarely wants to see his name in the press.  This is the 2nd week in a row that we can’t help but notice Bus Cook getting attention [Agent explains Cutler timeline].

Baseball

• $1.5 million guaranteed plus the possibility of making another $1.5 million this year [Rodriguez, Astros agree to contract].

Basketball

• The NBPA was not too happy with that Yahoo! Sports article calling out Ceruzzi Sports and Pat Barrett [NBA Players Association to probe agency].

Sports Business

• Make sure you provide your clients with solid financial planners [IRS Looking At Athletes More Closely].

Shabbat Shalom: Friday Wrap-Up (3/20/09) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules