“By some combination of mendacity and greed, the agents who are looking out for themselves rather than their clients are trying to scuttle the deal.  They’re engaged in what appears to be an orchestrated Twitter campaign and a series of interviews that are designed to deny the economic realities of the proposal.” – NBA Commisioner David Stern on 11/12/2011

I must have the wrong agents listed on The Master Twitter list of sports agents/agencies, because I have missed any semblance of a “Twitter campaign” led by agents who hope to quash a potential deal to end the labor battle between the NBA and the NBPA.  In fact, most agents that I talk to are eagerly anticipating the day that a new collective bargaining agreement will be struck, albeit with terms more favorable to the agents’ client.

Are agents looking out for themselves?  You better believe it.  But they are also looking out for their clients.  While money is not the be-all and end-all for every player, many of them are genuinely interested in keeping the various exceptions to the salary cap, increasing minimum salary, etc.  Agents certainly fear an environment where there is little room for contract negotiations, because that takes away their ability to legitimize a full 4% commission on individual contracts.  However, players should also be concerned about implementing any new restrictions on negotiating their salaries.

Stern is right about one thing, though.  Decertification is a losing strategy.  But it is not a losing strategy for the players.  It is a losing strategy for the entire NBA, which includes all owners and players.  Decertification will likely end the hope of any kind of 2011-12 NBA season, force the NBA and NBPA to spend a large amount of money to their respective lawyers, and kill whatever goodwill the league earned in a fantastic 2010-11 NBA slate of games.

Basketball Agents Are Greedy Twitter Campaigners from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Basketball

• Wasserman Media Group is part of the mix [Pistons' Brandon Knight wants to be healthy role model].
• I just like the fact that Glass is quoted saying, “”And as my ex-wives learned, I don’t go to court unless I know I’m going to win.” [Long-time agent Keith Glass urges NBA owners & players not to forget the fans].
• Does Stern treat the comment that he is “the master of spinning a story” as a compliment? [Top NBA agent Bartelstein blasts Stern for handling of lockout].
• Mark Bartelstein is really making the rounds [A Lot of Talk, but Few Stars Have Left the Country to Play].

Shabbat Shalom: Friday Wrap-Up (10/14/2011) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Billy Hunter, the executive director of the National Basketball Players’ Association said the players would not even get back to where they stand now financially until the last year of a 10-year collective bargaining agreement.  The present agreement ends on June 30, so time is limited the parties hope to get a deal done prior to a likely lockout.

The NBA recently proposed something it calls a flex salary cap to the players.  But the players’ union said the flex salary cap is a hard cap, not a flexible one, and the union is not interested in it.  At the moment, the salary cap issue seems to be the biggest hurdling point towards reaching a new agreement.

NBA commissioner David Stern said the flex cap places a limit on spending, but teams would still be able to go over it up to a certain point.  However, the players say there is still a spending limit that eventually comes into play.  Stern added that the players would be guaranteed at least $2 billion every year of a 10-year agreement, which is a little less than what they made this year.

Stern said a player’s average wages would be approximately $5 million and the players and owners would eventually split revenues 50-50. Right now the players are raking in 57% of revenues, and the league wants to reduce that to 54.3% over the first five years of a new deal by reducing salaries by more than $500 million. This includes an 8% cut in pay in the first year of a new agreement.  Stern didn’t say this was the league’s final offer, but did admit it is getting close.

The NBA wants to introduce a salary cap of about $62 million, but allow teams to spend more than that before reaching a limit that they can’t go over.  At the moment, there is a soft salary cap in place and clubs can exceed it as long as they pay a luxury tax when exceeding the limit.  This year’s cap was set at $58 million, but some teams, such as the Dallas Mavericks, spent more than that (well over $70 million).

The league also wanted to introduce non-guaranteed contracts, but later dropped the issue and said it would leave things the way they are now.  But the players said they have had guaranteed contracts for 40 years, so the league is not really making any large concession by dropping the issue.

There is some light at the end of the tunnel, though, as Billy Hunter feels the owners are interested in coming to an agreement and is hoping the NBA will not see its first work stoppage since back in 1998.  But the union and the league said they are still far apart and more meetings will need to take place soon to get things done in time.

The two sides have exchanged a total of 10 proposals since negotiations began and there are likely to be a couple more before a new agreement is executed.

NBA Close To First Work Stoppage Since 1998 from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Meanwhile, LeBron was invited to watch Game 2 of the Lakers-Celtics NBA Finals in Geffen’s seats, but declined the invitation.  Instead, LeBron’s close friend and partner, Maverick Carter, did attend the game with Geffen.  Although he opted not to attend the game, James spent the weekend in Los Angeles with Carter.  ESPN reported that a source confirmed that Geffen’s interest in purchasing the team is one of the reasons James and Carter were out west.  Teams are not allowed to contact players under contract until free agency begins July 1, and the league has already fined Mark Cuban $100,000, and two other teams for making comments about LeBron.  But Geffen is not an owner of any percentage of the Clippers or any other team, and can discuss LeBron’s potential future as a Los Angeles Clipper as much as he’d like without fear of discipline by Commissioner David Stern.  SportsAgentBlog.com has previously reported on the future of James’ career and the people surrounding his decision-making.  Obviously Leon Rose, Lebron’s agent at CAA, will play a large part in brokering LeBron’s return to Cleveland or move to another city.  Likewise, Darren has mentioned the speculation of the behind-the-scenes role that Worldwide Wes (William Wesley) plays in LeBron’s career.  However, LeBron’s L.A. travel companion, Carter, will likely play one of the most important, if not the largest role in James’ decision on where to play next year.

Rose is LeBron’s registered NBA agent, but only represents James in his player contract negotiations.  LeBron is a self-made businessman in all other respects, and Maverick Carter is James’ partner and CEO of LRMR, the marketing agency started by the two to manage the marketing deals of LeBron and other athletes.  According to Sports Illustrated’s “The Fortunate 50”, two-thirds of his $42 million in earnings in 2009 came from endorsements.  It would be fair to say that Carter’s role as James’ de facto marketing agent puts him in a position of power, as James’ decision will undoubtedly be affected by his endorsers, especially Nike.  I agree with ESPN’s Skip Bayless, who recently commented on an ESPN program that Maverick Carter was the most influential member of LeBron’s team.  Like the possibilities in of James playing in the city that never sleeps, I’m sure that potential for James to play in Tinsel Town has been talked about in the board rooms of his endorsers.

The allure of playing in Los Angeles might be intriguing to LeBron James.  He would be playing in arguably the best sports city in the country, and won’t have to play in the house that Jordan built, or for the Knicks or Nets, neither of whom have even had the chance to lose a playoff game, much less win one in years.  While Kobe Bryant seems to be getting better every year, he is certainly inching closer to the end of his already 14-year career.  LeBron could really bring the Clippers out from under the shadow of the Lakers, and truly reign as the King of Los Angeles.  He would also be surrounded by the likes of Blake Griffin and Eric Gordon, which reads like a Championship-winning caliber team.  If anyone has the wallet to buy the Clippers its Geffen, whose net worth is estimated at $4.6 billion by Forbes, but current Clippers owner Donald Sterling has insisted as he has many times before that he is not interested in selling the team.  In the end, a LeBron-Geffen Clippers may be just another California dream.  Until free agency starts on July 1, it will remain as one of the many rumors surrounding LeBron James and those that influence his decisions.

King James in Hollywood…Not Likely from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

In the recent week since the downfall of the Kentucky Wildcats in the NCAA Tourney, speculation has arisen about the status of John Wall, the Kentucky point guard, who by most analysts is expected to be the number one overall pick in the 2010 NBA Draft.

There are reports that Wall is having second thoughts about an early entry into the NBA, which is understandable – he is nineteen years old, where most like he, are enjoying some of the greatest years of their lives, in college.

So, what is more important — another year in college or a fast break into one of the most unforgiving leagues in professional sports? One route almost guarantees lifelong success, while the other only dazzles dollars in exchange for a shortcut, which could inevitably be fateful in the worst possible way.

I could cite ridiculous examples of failures and successes until I’m blue in the face, but the fact is – getting to the league early only guarantees one thing – money.

David Stern had a plan when he conceived the ‘one-in-done’ rule. After all, John Wall is quoted saying that college has been more fun than he could have ever imagined.

So if you’re that agent looking at him as merely a business proposition, I challenge you to forget about your cut of the monetary gain and think about the person before the player. I challenge you to become an advisor before a business partner (for lack of a better word, an agent).

I expect Mr. Wall will have heard and will see nearly every voice and face in the sports industry. For him I would advise three things:

1. Ask yourself; what do you want your legacy to be in the next 10, 15, or 20 years?
2. How important is money to your short-term and long-term happiness?
3. What would it mean to win an NCAA National Title and share this with your friends, family, and peers?

The glitz and excitement of what lies ahead will always be there – cheap and opportunitistic people will come and go, the draft will be there next year (if not, then in 2012), but your image and more importantly your legacy will live forever.

John Wall – I challenge you to define yourself before others define you.

Why John Wall Should Not Go Pro…This Year from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Two years ago, Gilbert Arenas signed a six-year, $111 million contract with the Washington Wizards. NBA Commissioner David Stern suspended Arenas indefinitely without pay, and the length of the suspension will most likely be determined after the sentencing. The large sum of money Gilbert Arenas was set to earn in the years to come may be in jeopardy.

The Washington Wizards have multiple incentives encouraging them to void Arenas’ contract. The Wizards have been looking to dump large contracts to jump-start a rebuilding process. Arenas is still a great player, but after the turmoil he caused the franchise, the Wizards have no reason to keep him with the team during a rebuilding phase.

However, the Wizards may have a difficult time voiding Arenas’ contract. The NBA Players Association will fight the Washington Wizards attempt to void Arenas’ contract at any cost. It is unlikely that the Wizards will be able to dump Gilbert Arenas’ contract in such an easy manner. However, it is likely that the Wizards will attempt to trade Arenas, and most importantly to Gilbert, he is still without pay.

Commissioner David Stern has routinely come down hard on criminal offenders playing in the NBA, and Arenas will not be an exception. Following the March 26 sentencing, sports fans will get a clearer picture of what this mistake means to Arenas, but it is clear that
his decisions are already hurting this once heralded player.

The Ramifications of Gilbert Arenas’ Sentence from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Gilbert Arenas does not like to be told when to shut up.  Perhaps that’s one reason why he has decided to not hire a sports agent (in case you did not know, Gilbert signed and negotiated his own contract with the Wizards).  But agents are known to taken on more roles than only negotiating contracts on behalf of their players.  One area that agents may aid their clients is in media/public relations.  Arenas could have used someone like that in his corner this past week.

Yesterday, Arenas was suspended indefinitely from playing in the NBA.  David Stern used the old “not currently fit to take the court” justification.  Article 35(d) of the NBA constitution lays out Stern’s powers in this circumstance (emphasis added):

(d) The Commissioner shall have the power to suspend for a definite or indefinite period, or to impose a fine not exceeding $50,000, or inflict both such suspension and fine upon any Player who, in his opinion, (i) shall have made or caused to be made any statement having, or that was designed to have, an effect prejudicial or detrimental to the best interests of basketball or of the Association or of a Member, or (ii) shall have been guilty of conduct that does not conform to standards of morality or fair play, that does not comply at all times with all federal, state, and local laws, or that is prejudicial or detrimental to the Association.

Seems pretty broad, right?  It was meant to be that way.  Maybe Arenas will file a grievance.  Under Article XXXI of the NBA Collective Bargaining Agreement, an arbitrary and capricious standard of review would be used as long as the Grievance Arbitrator finds that there is just cause for the penalty imposed.    That’s a tough standard to meet.

But why did it have to get this far in the first place?  Could an agent have possibly prevented this public relations nightmare?  Jason Wolf says yes, but that it would not help much in dealing with the law.  We can’t keep our clients out of prison after they have committed a wrongful act, but we might be able to save them from making the situation they find themselves in even worse.  We can at least try to stray them away from using Twitter for the wrong purposes.

Gilbert Arenas Has A Lot Of Free Time To Tweet from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

You have heard of Brandon Jennings.  He had problems attaining the requisite scores to go to a D1 school and decided to play his first year out of high school overseas.  His struggles were documented, but he was still a lottery pick of the Milwaukee Bucks.  There were many doubters.  He has shut them up thus far.  Through five games, Jennings is leading the Bucks in points-per-game (18.4), assists-per-game (4.4), and minutes-per-game (31.6).  Doubters have become believers, and it has made the NCAA nervous that young players will read up on the Brandon Jennings Experiment, deciding to play overseas for a year, pocket that money, and then hopefully be a lottery pick in a future draft.  Not so fast..

While Brandon Jennings may have “cheated the system”, there are those that believe he will be a rare exception.  They look at someone like Jeremy Tyler, who has not yet tested his luck in the NBA or its draft, but has been struggling mightily overseas in Israel.  Tyler left the states a year younger than when Jennings left; he left before he completed his senior year of high school.  His coach in Haifa is not too fond of him thus far, calling him lazy, out of shape, naïve, and immature. I find it interesting that after only two games, Pete Thamel of the New York Times can already confidently say,

The Milwaukee Bucks rookie Brandon Jennings skipped college and had rocky moments while playing last season in Rome. But they were nothing compared with Tyler’s.

What does this tell us?  Not much, yet.  Tyler still has a lot of time to prove himself overseas.  And let us not forget how much criticism Jennings received before becoming a solid player in the NBA.  It seems like some of our memories are very short.  I think it is way too early to call Tyler a bust.  However, if Tyler is unable to thrive in Israel and does not pan out in the NBA, then perhaps Jennings will be looked at as a fluke success story, and Tyler’s story may dissuade others from following his path.

One thing that is certain is that there are a lot of important people paying particular attention to how Tyler fairs in the long run.  Those entities include advisors like Sonny Vaccaro, agencies like Wasserman Media Group, executives within the NCAA, David Stern, shoe companies, and many others.  Personally, I hope that Tyler wakes up and gets his mind right, because as an agent, I love having more options for potential clients.  If a future Jennings or Tyler came to me asking for guidance on what to do, I’d like to have confidence that playing overseas instead of NCAA basketball will not kill his future.

Jeremy Tyler Already Has His Doubters from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Well, that comment and his notable skills during only four games in group play caused NBA commissioner David Stern and the NBA legal counsel to advise NBA teams of their rights when dealing with Iranian players.

In the letter, which was sent to all NBA teams Friday, the NBA legal counsel wrote: “It has come to our attention that representatives of Hamed Ehadadi, an Iranian basketball player, may be contacting NBA teams to discuss the possibility of signing Mr. Ehadadi to an NBA player contract. We have been advised that a federal statue prohibits a person or organization in the United States from engaging in business dealings with Iranian nationals.”

Ehadadi was asked in a press conference if any NBA teams had contacted him so far. He replied by stating that two or three NBA teams had already contacted him, including the Memphis Grizzlies.

In Iran’s four losses in Pool B of the Olympics, Ehadadi averaged 16.5 points, 10 rebounds and 2.5 blocks. He is considered a project by many NBA teams, but recently has shown improvement with his inside game, showing more strength than in previous settings. Ehadadi also has shown that he can block shots. His most impressive attribute however, remains his height. At seven-foot-two, the young 23 year old is a project that many NBA teams would like to start working on right now.

Currently, the NBA is applying to the U.S. Office of Foreign Assets Control to get a license that would allow any NBA team to negotiate with Ehadadi. Until the NBA gets permission, no franchise is allowed to discuss anything with the HUGE Iranian.

I wonder if the NBA will investigate any of the three teams that have contacted Ehadadi already. If Major League Baseball investigated Manny’s situation after he was traded to L.A. then David Stern will certainly be looking more into this situation and the NBA teams involved. I do not believe it will result in anything substantial, but contacting an athlete who cannot be legally contacted is a violation of NBA rules.

No Iranians Allowed In The NBA from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

But after seeing those 10 kids get drafted, it really makes you second guess this rule that states players must be one year removed from high school before entering the draft. It has made a complete mockery of college basketball, and the student-athlete concept.

High school seniors are now going to college with no intention of being students, just athletes. While it may help these athletes with marketing themselves, it severely ruins the intriguing nature of college basketball. I would love to see how many classes this freshmen class attended, or at least their final freshmen year GPA.

It’s time that David Stern realizes his imposed age restriction does nothing but harm college basketball. The NBA should follow the NCAA football model, that requires players to be three years removed from high school.

One and Done from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules