Caric, who has five NFL Draft eligible clients, including University of Washington’s Mason Foster, who is likely to be a 2nd or 3rd rounder, is now being investigated by Ross Miller, Nevada’s Secretary of State.  Miller is concerned that Caric had not registered as an athlete agent in the State of Nevada and has issued a cease and desist order against the agent, who must stop representing players until the investigation is complete.  How will this affect Caric’s representation of Foster and his other four draft eligible clients?  The NFL Draft is merely three weeks away.

A positive for Caric is that he appears to be cooperating with Miller’s investigation.  Hopefully it will wrap up prior to the start of the NFL Draft.  Caric seems to be saying all the right things in the meantime, such as,

“I support the secretary of state’s effort to regulate athlete representation in Nevada and I am fully cooperating to make sure I am in full compliance with all state requirements.”

Steve Caric Under Investigation In Nevada from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Mark McCormack is the founder of International Management Group, better known as IMG.  While IMG has become very well known for its expansive event management division, collegiate licensing division, and broadcast division, it was the pioneer amongst companies branded as “sports agencies.”  Many of the best agents got their start at IMG, and some of the best still remain at the company today.  However, IMG has shifted from having an expansive team sports division to only focusing on representing individual sport athletes when it comes to athlete representation.

McCormack passed away in 2003 at the age of 72-years-old.  His son, Todd McCormack said that a major reason he chose UMass Amherst for the donation of his father’s archives is because the school’s faculty is the most experienced in the United States.  That is quite a compliment from the Senior Corporate Vice President of IMG.

$1.5 Million + Mark McCormack’s Archives Goes To UMass Amherst from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Up until high school, the plan was to become a doctor.  You know that put a smile on my Jewish mother’s face.  When I realized that I could not bare even looking at blood, I started to think about new lines of work.  From the day I was born, my father pushed sports on me.  I loved watching athletes perform, but enjoyed being a part of the action even more.  I picked up a tennis racket at the age of 3 and a baseball bat at the age of 4.  So with Sports Doctor out of the question, how else could I incorporate my passion for sports in my professional life?

Leading up to my freshman year of high school, I had heard many great things about High School Debate, and more specifically, my high school’s (Nova High) debate team.  Never one to back down from arguing my view and stubborn to the nth degree, debate seemed like it would be a good fit.  I ended up specializing in Student Congress, where I was responsible for crafting Bills and Resolutions, and arguing the Affirmative or Negative stance on a provided docket of legislation at various national tournaments.  By senior year, I was Captain of the Student Congress section of our debate team, which was known for having the strongest Student Congress competitors in the United States.  I was reading Supreme Court cases in high school and citing precedents practically every weekend.  When I applied to various universities, the plan was to Major in Political Science and then go to law school, with the goal of entering the world of politics.

I chose the University of Florida as my college destination.  Upon stepping foot on campus, I was ignorant as to how politics in the real world actually operate.  I still believed that those with the brains and those with the drive were the people who were awarded positions.  Boy was I wrong about that.  The University of Florida opened up my eyes to how politics really works.  After being denied positions that I was certainly qualified for, mostly due to the fact that I joined one of the newer, less politically powerful fraternities on campus (we are now amongst the strongest – and it is nice to know that I had a part in that), my desire for politics started to diminish.  At the University of Florida there is an honor society called Florida Blue Key.  It is a very selective group of the most involved and powerful people on campus.  I knew I wanted to be a part of it.  And I was told many times by very powerful people that I would never get in and one former President of the organization told me that he would make sure that I wouldn’t be invited.  So much for that, as I am now a member, but that is another story.

So after I realized that I wanted something other than a political future, but still very interested in going to law school and always passionate about sports, I decided to give the whole sports agency business a try.  Again, I had no idea what I was getting myself into.  I figured that the qualified applicants get invited to participate in internships and that the business operates on merit as a whole.  I quickly found out that was not the case.  Luckily, I had a connection to the President of a major agency.  My girlfriend (at the time) was roommates with the niece of this President.  The company had less than 10 summer internships available, and over 800 applicants.  Only 1 person would be interning in the particular area that I wanted – Client Services.  The company does a lot of work outside of athlete representation, which is where the other interns worked.  My connection allowed me to skip the in-person interview and do a phone interview instead.  And I failed.  I did my research on the company, but living in Florida my entire life and being used to the way Floridians communicate with each other, I came off as not having enough of the “southern hospitality” this company was looking for.  But I got a 2nd chance in another phone interview, and I knocked it out of the park.  I interned with the company over that Summer between my sophomore and junior year of college.  That’s when I decided that I wanted to be in this industry.  The internship confirmed it and made me believe that I had the skills to separate myself from the competition and do great work for my future clients.

Why I Decided To Enter The World Of Athlete Representation from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Understandably, it is not worth it to sue another agent if he steals your Minor League client who is not showing up on any Top Prospect Lists.  It is probably not worth it to even go after someone who steals a good D-League client of yours.  But what about someone who comes in and takes a big baseball client right before he becomes eligible for arbitration?  Then is it worth it?  Do you even have a leg to stand on?

Fortunately, yes, you do have a claim against another person who steals your client.  The action is based on an economic tort called “interference with contractual relations.”  If you have a legal contract with your client and the rival agent is the cause of your client breaking your contract, you may have a claim.  Your client need not even sign with the rival agent who caused the split.  You need to prove that the agent caused the interference, and it helps to show that the agent had a bad motive and interests adverse to yours (easy to show if he is a rival).  But it is not enough if you aim to show that the rival agent signed the player after your client broke your contract.

When I told my friend William Glover that I was planning on writing this post, he offered some of his own writing on the subject.  Included in that writing is the following,

Of course, the right to make a living or to conduct one’s business is subject to the rights of others, and legitimate competition between businesses in seeking to gain customers would not give rise to this tort.  This tort can be difficult to prove because of the right of competition.  Generally, it is necessary to prove that the defendant intentionally persuaded another to breach a contract with the plaintiff.

This is a very competitive business, but I believe that there is a clear line between competition and intentionally persuading another to breach a contract.  I can go up to a player, pitch him on my services, and then find out that he is already represented.  I did not intentionally persuade the player to breach his contract in that situation, and if the player leaves his agent and signs with me thereafter, no harm and no foul.  However, if I go up to that same player, knowing he has an agent, and I run down a list of 10 reasons why that player should fire his agent and hire me, am I guilty of intentionally persuading that player to breach his contract?  I would think so! (and I may have a defamation claim as well)

So this one agent that I see quite often who likes to interrupt my conversations with families to mention that he likes to steal other peoples clients is not guilty of anything when he says things like that.  However, those statements add to his culpability when you hear that he actually is successful in grabbing players from other agencies.  Those kind of tactics are bound to get you in trouble.  Do not mistakenly believe that just because you don’t hear about many interference with contractual relations lawsuits that there are no rules in this business.  Most of the time, they are just not worth litigating.  But again, sometimes they are.  Such was the case with Aroldis Chapman, and while we will never know if Hendricks Sports Management was guilty of interference (the case was settled), Edwin Mejia thought that he had a strong enough case and that it was monetarily worth it to file an action in court.

Sports Agents Interfering With Contractual Relations from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

IMG is not alone in this area.  In fact, Blue Entertainment Sports Television (the company that was recently sold to Lagardere) also does a lot of business outside of the representation of professional athletes.  Blue Entertainment Sports Television, also known as BEST, was owned by a private investment firm, Blue Equity.  The chairman and managing partner of that company is Jonathan Blue.  And one thing Blue wants the world to know is that he is not a sports agent.

In a presentation given to the Association for Corporate Growth in Kentucky, Blue opened with the following statement:

“I’m not a sports agent. I never was.”

It is not just Blue that is trying to shed that limiting phrase from what is associated with his name.  When I talk to executives at some of the largest “agencies”, a majority of them want to emphasize to me that when I report on their companies, I should talk about not only what they do in the athlete representation world, but their other areas of business as well.  And then there are those who also can’t stand the “sports agent” phrase to begin with.  As you may already know, I am one of those people.

But did you know that before BEST was sold, only one-third of its revenues came from the representation of athletes?  The majority of its revenues come from a combination of selling rights to events, managing events, and marketing opportunities.  And that makes sense.  Think about the small percentages that agents take on the contracts negotiated for their clients.  Some leagues limit the commission (NFL, NBA), but others like the MLB and NHL will force you out of being competitive if you charge any more than 5%.  If you don’t have a very successful client, the small percentage on their contracts won’t allow you to stay alive.  So many agencies generate revenues in other fashions.

Agencies Not Only Representing Athletes from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

I am sure that the current agents on this site would agree that at least one, if not more of their clients, actually sought them out as an agency. Word of mouth can be great marketing, so if you satisfy your current clients, when their friends/ teammates need an agent, your client can confidently recommend you. You never know what one connection can bring you in the end. Make yourself available, and be willing to speak with people, even if you do not recognize their name.

To go along with contacting agents/agencies, persistence can really pay off. Yes, it took numerous phone calls, and stressful moments just to get those two contacts. It was well worth it, though, and I gained a lot of insight into the business of athlete representation by simply making phone calls.

Making Yourself Available from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

I no longer want to be associated with those who offer empty promises to players in order to find their name on an agency contract.  I don’t want athletes to think they can use me to pay for their training as if I am some sort of lending institution (how exactly did agents become the people who finance training anyway…where is that in the definition?).  And I definitely do not want to be grouped with any ‘sports agents’ who will violate the law or act unethically to gain a buck, or 100,000 bucks.

All of these thoughts led me to tweet this:

The responses were tremendous.   The best question was when one person asked if my re-branding would change the name of this blog.  Don’t worry, SportsAgentBlog.com is not getting a new domain name.

I’m a child of this amazing internet age.  My company, Dynasty Athlete Representation, has experienced the tremendous growth of the internet and social media since its birth in April 2007.  Thus, I was not all that surprised when my tweet created such an overwhelming response.  I was also not surprised that I would end up adopting a title that was introduced by someone who decided to reply.  The winner = athlete advocate.

Even advocate has the potential of having a negative connotation.  Wikipedia mentions that advocates represent those who lack the knowledge, skill, ability, or standing to speak for themselves.  But this is not what I am trying to convey at all.  Instead, I want to be someone who will do absolutely anything legal and ethical for my clients, and also empower them with knowledge as I aid them in their future success.  I see it as a process that involves my clients as much as possible.  They are not dumb in any sense, but they hire me and Dynasty for a reason – because we can add value that they might not be able to achieve on their own.  It could purely be that they do not have the time to do it in conjunction with excelling on the field or court.  It could also be a matter of the connections in the industry that we have built over time.  Additionally, our background in law and negotiation is something that many athletes do not have an opportunity to focus on until after their playing days are over.  These are the values I want my clients and potential clients to see; not the buying of players by paying training costs or promises that I will turn someone into a first round pick.  I’ll leave that to the ‘sports agents’.  What I want to provide is what an athlete advocate can do for his clients.

Sports agents will undoubtedly feel uncomfortable after reading this post.  I have beat the odds by getting to where I am today, especially since I have been very open from the start and have not allowed myself to get involved in any shady tactics.  Nothing will change.  In this process, I will attract haters and I will attract imitators, but all I care about is my clients knowing that they will get the best damn advocate they can find.

I am not only re-branding myself.  I want to re-brand Dynasty as an entity that you feel excited to be a part of. From the beginning, I have embraced openness about our inner workings and have provided you with information about our clients.  Hopefully you have grown to become familiar with our operation.  Dynasty is something that has amazing potential, and I want all of you to be a part of its success.  I want it to be the first agency that has its doors wide open and offers everyone interested in the opportunity to be an athlete advocate the chance to add value to the company and its clients.

No matter what the reasoning may be, I know you are smiling.

No Longer A Sports Agent – Now An Athlete Advocate from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

What: 2010 St. Thomas University School of Law Spring Symposium

Where: St. Thomas University School of Law (map)

When: Saturday, March 13, 2010 (8:30 a.m. – 5:15 p.m.)

Cost: Click here to pre-register.
Pre-Registration/On-Site
STU Law Students             $15 / $20
STU Students                     $15 / $20
Law Students (Non STU)   $20 / $30
General Admission             $20 / $30
Attorneys for CLE              $30 / $40

Spring Symposium Time Line Breakdown:

8:15 am – 8:45 am CHECK IN, REGISTRATION, BREAKFAST

8:45 am – 8:55 am PANEL I (Moot Court) / OPENING STATEMENTS

General introductions made by ESLS and Board Moderators

9:00 am – 10:00 am PANEL II (A) / NCAA Athletics: More than a Deal

Panelist: Anthony Hernandez (UM Athletics), Jamie Israel (UM Compliance), Monique Garcia (FIU Compliance)

A discussion of college sports including sponsorships, compliance, and other forgotten issues facing players, coaches, and attorneys

9: 00 am – 10:00 am PANEL II (B) /Homegrown and Stable?:  A Look at Web Based Content

Panelist: Sira Veciana-Muncio (Sony Pictures Entertainment), Dainira Falk (Discovery Communications), Ernesto Luciano (Yahoo! Latin America)

The internet has become a facet of everyday life but how sustainable is the content created for the Web?  What will the future hold regarding the shelf life of content and for deals structured around that content?

10:15 am – 11:15 am PANEL III (A) / Community Development through Sports

Panelist: Derek Jackson (The Marlins), Nancy Olson (Florida Marlins Community Foundation), Latoya Williams (Orange Bowl Committee)

Community development through sports includes working with the community, local school districts, and business organizations to provide a service which can cut across cultural divides. A look at the positive effects local sports teams can have in terms of creating jobs, bringing revenue, and promoting local vendors through partnerships.

10:15 am – 11:15 am PANEL III (B) / Hollywood or Hollywood, FL: Film Making Florida

Panelist: Melissa Exposito (Exposito Law), Ruth Paul (Screen Actors Guild), Fred Moyse (International Alliance of Theatrical Stage Employes)

Feature films and television have used South Florida as a backdrop for years.  What does the market look like currently?  What can be done locally to grow the industry? Discussion includes viewpoints from local attorneys, government, union officials, and production companies

11:30 am – 12:30 pm PANEL IV (A) Sports and Social Networking

Panelist: Johnny Williams (ProMotion Sports & Entertainment, LLC), Leslie Bauknight Nixon (Super Bowl Host Committee), Darren Heitner (Dynasty Athlete Representation)

Social networking’s explosive growth can be felt in all sectors of sports. A discussion of the legal influence or implications of Facebook, Twitter, My Space and other social networking tools on the four major professional leagues.

11:30 am – 12:30 pm PANEL IV (B) All the World’s a Stage: a Look at Theaters

Panelist: Louis Tertocha (Adrienne Arsht Center), Steven Eisenberg (Lipscomb, Brady & Bobadilla), Jeff John (Revolution Live)

Examining the issues dealing with venues; union issues, performance rights, insurance issues and the viability of managing theaters here in South Florida

12:30 pm – 1:30 pm LUNCH

1:45 pm – 2:15 pm KEYNOTE SPEAKER

Marc Stollman (S2BN Entertainment)

2:30 pm – 3:30 pm PANEL V (A): The Future of the Sports Business

Panelist: Jason Weiss (Arnstein & Lehr LLP), Jaime Vining (Lott & Friedland)

Possible Panelist: Kim Kolback (Kimberly Kolback, Esq.)

A discussion on the developing trends in contract negotiations, licensing, and IP rights tied to sports.

2:30 pm – 3:30 pm PANEL V (B): 360 and Beyond: The Future of Negotiations in Music

Panelist: Richard Wolfe (Ehrenstein Charbonneau Calderin), Marc Stollman (S2BN Entertainment), David Bercuson (David Bercuson, P.A.)

Declining album sales and a changing industry has given rise to the “360 Deal” which encompass taking a financial stake from the artist on all revenue points.  Is this the future?  What are other ways to survive the downturn in music profits?

3:45 pm – 4:15 pm CLOSING PANEL: Looking for a Client who is Looking for You

Panelist: Stephen Carlisle (Stephen M. Carlisle, P.L.), Darren Heitner (Dynasty Athlete Representation), Leslie Bauknight Nixon (Super Bowl Host Committee)

When seeking talent what are some pitfalls for an attorney to avoid?  What should they look for?  What are some of the murky ethical areas when courting potential clients?

4:15 – 5:15 pm RECEPTION

St. Thomas Entertainment And Sports Law Society Symposium from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Keels got a lot of press on this website last year for his representation of Andre Smith.  Smith signed Keels, then fired him for Priority Sports, and then signed Keels back.  Rick Smith of Priority Sports was pissed.  The latest news on Keels is that he is in the process of trying to acquire a commission he believes he deserves, based on his representation of Larry Johnson when Johnson signed a contract with $19 million in guaranteed money before Keels dropped Johnson as a client (usually it is the other way around with an athlete dropping an agent).

Alvin Keels has had a lot of success in the world of athlete representation up to this point.  I find it interesting that he has decided to join forces with another agency.  I couldn’t find any information on Corporate Athletic Management, but even the NFLPA website lists Keels as a part of the company at this point.

Liz Mullen of SportsBusiness Journal was able to figure out some additional pieces of the puzzle.  She says that Corporate Athletic Management is owned by a holding firm called Onyx Sports International, which based in Fairfield Connecticut.  Mullen also has information that Corporate Athletic Management is looking into growing its practice to represent athletes in other sports as well..

An interesting note – Lou Ceruzzi of Ceruzzi Sports and Entertainment Group, is a silent investor in Onyx.  The same Ceruzzi Sports that represents Jeff Pendergraph and was under investigation by the NBPA for donating $300,000 to the Southern California All-Stars AAU program in an attempt to represent Kevin Love.

Global Management Group’s website, http://gmgsports.com/, is no longer in service.  Keels is now a team player.

Alvin Keels And Corporate Athletic Management Join Forces from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

For the current Internship Program, Justin Herzig (our HR Director) received over 250 intern applications.  Some were thrown away after reading a couple of lines of the cover letter, but most applicants actually seemed extremely qualified for the limited number of spots available.  Do you need to have a law degree, MBA, or internship to break into this industry?  Read Jack Bechta’s story…the answer is no.  But it surely does help to at least have an internship.  Bechta is a part of a very small minority of people who can succeed in this very difficult profession by printing a few business cards and starting up a company with absolutely no experience.

Bechta mentions that there are several agents with a huge client list that never attended law school.  My response is that an agent is not graded by his client list.  There are also many players who end up suing their agent or leaving the agent because of poor execution of his job.  When I first started law school, I wondered myself why so many people said that it was so important for a person to attend law school in order to be an agent.  Criminal law, Torts, Property, Civil Procedure…yeah they may all come in handy, but probably not.  Then came Contracts, Corporations, Business Organizations, Intellectual Property…now it all makes sense.  The knowledge I have after going to law school coupled with the experience I continue to gain with my own clients makes me a better agent every day.

There is also going the route of Bechta and keeping an attorney on retainer for your firm.  I still think that if given the opportunity, go to law school.  Players like having a one-stop shop for all their needs (that’s why CAA, WMG, etc. continue to dominate).  I think that they also want an agent who can wear more than one hat.  To bring a personal knowledge of the law to every negotiation and not have to rely on another person seems to bring some extra value to the table.

As far as grad school for some sort of Sports Management MBA is concerned, I am not completely sold.  If you go that route, I think you should definitely heed Bechta’s advice.  Look at who the professors are and the subjects being taught before you spend all that money.

I can’t disagree with Bechta when he says that overall the 2 most important qualities for success in this industry are:

1. a competitive nature
2. determination

Along with that, I will add a third quality: 3) innovation.  There are so many agents out there going after the same clients, giving the same pitch, and providing the same services.  Do something to make yourself stand out.  Sorry, I already created SportsAgentBlog.com, so making a blog about the sports agent world will not really separate you.  Spend some time thinking about what you can do to make yourself a thing of value.  I promise that the time taken will be well worth it.

What’s Needed To Break In? Internship? Law School? MBA? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules