The new law has completely changed the definition of “athlete agent” within Arkansas.  To be considered an athlete agent in the state of Arkansas, one must either (1) have a student-athlete authorize the agent to enter into an agreement; (2) work on behalf of another agent (runners, recruiters, service providers, etc); and/or (3) represent to the public that he is an athlete agent.  Additionally, family members who offer or solicit, on their own behalf or the student-athlete’s behalf, any sort of financial benefit or gift not allowed by the NCAA will be considered athlete agents under the Act.

Furthermore, the Act demands that athlete agents notify a school’s athletic director prior to contacting an athlete at that school.  However, the Act also gives a 72-hour window to inform the athletic directorafter the contact is made.

Agents who provide a financial benefit or gift to a student-athlete may go to jail for up to 6 years and/or be fined $250,o00.

While the Act has received overwhelming support, Representative John Walker, a Democrat from Little Rock, Arkansas is not so sure about the Act’s effectiveness.  He has stated, “Perhaps this would be better to be a national law rather than a local law because you can talk about the agent, but you can’t bring that person within the state unless he has some significant direct contact with the student in the state.”  Perhaps one day the law will be used as a starting point for a new federal law.  However, in the meantime, at least the NCAA has taken notice.

Last week, Arkansas Chief Deputy Attorney General Brad Phelps spoke about the Arkansas law at an NCAA-sponsored summit.  It has been reported that State officials from North Carolina, Texas and Oklahoma, along with NFL and NFLPA members, and sports agents were in attendance.  It appears that the UAAA may soon become a relic of the past.  Will Arkansas’ law become the model for all states to follow?  I am not positive that would be a good thing, as the maximum penalty of 6 years seems rather excessive.

The Act may be read below.

The Athlete Agent Reform Act Of 2011

Arkansas’ New Athlete Agent Law May Be Used As National Model from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Senator Jeremy Hutchinson presented The Athlete Agent Reform Act of 2011 on the Senate floor.  While there was no debate as to the bill’s merits, Hutchinson said the following: “It appears that when sports agents unlawfully give money to student athletes the student athlete gets punished, the university gets punished, the fans … across the country get punished, yet the agent who actually violated the law gets off with very little, a misdemeanor.”  Arkansas seems committed to change that, at least within its own borders.  As I have stated numerous times, though, the key element is enforcing the Act once it becomes law.

Athlete Agent Reform Act Of 2011 Almost Arkansas Law from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

I applaud the state legislators like Rep. David J. Sanders in Arkansas and those in the state of Oregon who care enough about the problem of inducements offered to student-athletes by sports agents, to propose changes within their states.  However, I think that these individuals have mostly missed the boat, which could end up harming true worthwhile reforms.  In a vast majority of states, athlete agent laws already exist.  In the states where they do not yet exist, legislators need to propose legislation based on the Uniform Athlete Agent Act (UAAA).  But if states with existing athlete agent statutes think that new legislation with harsher punishments for violators will serve as a noble deterrent to unscrupulous agents who will do almost anything to gain an edge over the competition for highly touted rookie players, they are certainly mistaken.  A deterrent is a state putting a sports agent in jail for ignoring its existing laws (see: Alabama).  A non-deterrent is beefing up an existing statute while failing to do something about a top tight end who had to sit out his senior season in 2010 (see: South Carolina).

South Carolina Sen. Joel Lourie is another legislator who really has fantastic intentions with regards to the protection of student-athletes and institutions of higher education within his state.  However, he has fallen into the same trap as many other congressmen throughout the country.  He believes that tougher athlete agent laws in his state will help regulate illegal contact between athletes and agents.  But most states already have the tools to regulate the illegal conduct under consideration.  Why wait?  Why not enforce the laws currently on the books?

Let it be known that I have nothing against the new legislation making its way through state legislatures.  However, the mere suggestion that the passing of new legislation will serve as some deterrent is a complete joke.  The only way agents will be deterred from ignoring laws is to actually enforce them.  Regulation is controlling through rules and regulations, not creating additional rules and regulations.

States Focused On New Athlete Agent Legislation, Not True Regulation from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

The bill proposes to completely change the definition of “athlete agent” within Arkansas.  All you have to do to be considered an athlete agent is to either 1) have a student-athlete authorize you to enter into an agreement, 2) work on behalf of another agent (runners, recruiters, service providers, etc), or 3) represent to the public that you are an athlete agent.  Additionally, family members who offer or solicit on their own behalf or the student-athlete’s behalf any sort of financial benefit or gift not allowed by the NCAA will be considered athlete agents under the Act.

Furthermore, the Act demands that athlete agents notify a school’s athletic director prior to contacting an athlete at that school.  However, the Act also gives a 72-hour window to inform the athletic director after the contact is made.

Agents who provide a financial benefit or gift to a student-athlete may go to jail for up to 6 years and/or be fined $250,o00, if the Act becomes law.

Arkansas Attorney General Dustin McDaniel has stated that the legislation “does, in fact, put skin in the game for those who are engaging in wrongful conduct.”  He went on to say, “I do not think that under the current law there’s enough deterrence to effectively reach the decision-making process of somebody who may be in Miami driving a Ferrari and reaching out to young athletes all over the United States.”

Rep. John Walker, a Democrat from Little Rock, Arkansas is not so sure about this Act’s effectiveness, though.  He is quoted as saying, ”Perhaps this would be better to be a national law rather than a local law because you can talk about the agent, but you can’t bring that person within the state unless he has some significant direct contact with the student in the state.”  This is just one of many reasons why the Act fits better as national legislation.  But it is a step in the right direction for states like Arkansas to take sports agent illegality serious.  However, deterrence will come through enforcement, not mere words.

The Athlete Agent Reform Act Of 2011 In Arkansas from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

McDaniel said his legislative package for the upcoming legislative session would include a bill with stricter punishment for a sports agent, an athlete’s relative or another third party who negotiates benefits in exchange for an athlete attending a university. The attorney general cited the activities of Auburn quarterback Cam Newton’s father in seeking $180,000 from Mississippi State if he could steer his son to sign with that school.

“The student athlete’s career can be severely damaged if not destroyed when it comes to light, if the incident is severe enough the school can suffer … but the agent bears little real risk,” McDaniel said.

McDaniel wants to punish anyone acting as an intermediary in such cases by making it a felony punishable by a fine up to $10,000 and as much as six years in prison.

McDaniel said he hopes University of Arkansas Athletic Director Jeff Long will help present the bill.

The NCAA has absolutely no power over a third party who negotiates benefits in exchange for a student-athlete’s commitment to attend a university.  The NCAA may penalize the student-athlete by limiting his participation in athletic events and the athlete’s school could suffer great ramifications, but the third party gets off unscathed.  That is, unless a state like Arkansas has a law on the books that could send the third party to jail for 6-years.  The $10,000 fine pales in comparison to the $180,000 figure that Cam Newton’s father was seeking, and might not be enough of a deterrent.  6-years in behind bars – that’s a scary thought.

Arkansas Attorney General Wants To Clamp Down On Agents And Intermediaries from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Arkansas

Certain states are known for their veracity in hunting down agents who violate their athlete agent laws.  Florida has a history of enforcing its regulations, and Alabama is certainly not a state to mess around with.  Arkansas may also soon put all sports agents on warning.

Representative David Sanders (R-Little Rock) has proposed The Arkansas Player and Fan Protection Act.

The bill would make it a felony in Arkansas for an agent to provide or arrange for anything of value to be provided to a college athlete (it’s currently a never-prosecuted misdemeanor), fine the agent at least $250,000 (it’s now $50,000 in pocket change), and revoke his or her license to practice their craft in Arkansas for up to five years (they currently face no revocation at all). The bill also would penalize anyone acting on behalf of an agent.

The penalties may scare off some unscrupulous agents from recruiting in Arkansas, but until the new law, if passed, is enforced, it will not be completely effective.  Passing the laws with teeth is only half the battle.

Proposal To Revise Arkansas’ Athlete Agent Law from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

In Game 1, Cliff Lee went a full 9 innings to pick up a complete game win.  He gave up 1 unearned run and fanned 10 batters, while walking none!  Then, yesterday in Game 2, the Yankees were desperate for a big game from Burnett.  And he delivered.  Burnett went 7 innings, giving up only 1 earned run, fanned 9, and walked 2.  Braunecker is definitely happy with both pitcher’s strike-out/walk ratio.

So now Braunecker can relax for a few days…until Lee takes the hill again.  Next time, Darek won’t have to worry about Lee actually making it to the game he is scheduled to pitch.  NY traffic can really make things difficult.

Darek Braunecker Is A Fan Of This World Series from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules