The reason this comes to mind is a Tweet sent out 2 days ago by Paul Sheehy, President of Pro Star Sports.

If Cam Wake, the Miami Dolphins linebacker who is having a Pro Bowl, if not potentially an NFL Defensive Player of the Year, type of season was my client, I would be infuriated by that news.  Sheehy asks, “NFLPA Agent Regs anyone?”

Section 3(B)(21) prohibits a Contract Advisor from,

(a) Initiating any communication, directly or indirectly, with a player who has entered into a Standard Representation Agreement with another Contract Advisor and such Standard Representation Agreement is on ?le with the NFLPA if the communication concerns a matter relating to the:

(i) Player’s current Contract Advisor;

(ii) Player’s current Standard Representation Agreement;

(iii) Player’s contract status with any NFL Club(s); or

(iv) Services to be provided by prospective Contract Advisor either through a Standard Representation Agreement or otherwise.

(b) If a player, already a party to a Standard Representation Agreement, initiates communication with a Contract Advisor relating to any of the subject matters listed in Section 3(B)(21)(a) the Contract Advisor may continue communications with the Player regarding any of those matters.

(c) Section 3(B)(21) shall not apply to any player who has less than sixty (60) days remaining before his NFL Player Contract expires, and he has not yet signed a new Standard Representation Agreement with a Contract Advisor within the sixty (60) day period.

(d) Section 3(B)(21) shall not prohibit a Contract Advisor from sending a player written materials which may be reasonably interpreted as advertising directed at players in general and not targeted at a speci?c player.

Basically it boils down to a question of whether Drew Rosenhaus initiated the conversation with Wake or vice versa.  If Cam Wake called out Rosenhaus, then no harm no foul.  Under the MLBPA Regulations, which are more strict in this area, Rosenhaus would have to report the communication, anyway.  If Rosenhaus initiated the communication, then to stay clear of a violation, he could not have mentioned Paul Sheehy, talked about Cam Wake’s current contract with Sheehy, discussed Wake’s contract with the Dolphins, or talk about what he could be doing for Cam Wake if he was his Contract Advisor.

NFLPA Regulations As To Drew Rosenhaus Speaking With Cam Wake from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

In last week’s post, I wondered aloud whether the NFLPA might use the clause against Gary Wichard.  While the players’ association would need some credible information before invoking the serious measure, the union may have some motivation to use the clause based on past action against Wichard.

On October 20, 2004, Wichard was handed the following Disciplinary Complaint:

Wichard was held strictly liable for allowing his password for access to confidential salary information to be obtained by a third party in violation of the stated policies of the NFLPA. As a result, third party was able to obtain confidential salary information from the NFLPA’s website on more than 40 occasions.  The Committee on Agent Regulation and Discipline issued a letter of reprimand and fined Wichard in the amount of $2,500 to be paid into the Players Assistance Trust (PAT).

Wichard’s action and the ensuing discipline are nothing compared to the current allegations and potential discipline, but at least Wichard is not an unknown to CARD’s disciplinary process.

Gary Wichard’s History With The NFLPA’s CARD from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Raymond Lee Savage Jr.

Savage Jr. was arrested and taken into custody in October 2008 for allegedly having a part in the illegal contact of former University of Alabama wide-receiver, Tyrone Prothro, while Prothro was in college.  One of his employees also failed to adhere to the state of Alabama’s athlete agent registration requirements.

Savage Jr. plead not guilty to both charges for which he was accused: 1) Not registering as an athlete-agent in Alabama (felony); and 2) Initiating contact with a student-athlete (misdemeanor).  The state of Alabama dropped the misdemeanor charge, but the felony charge remained.

However, just a couple of days ago a judge issued a writ of arrest for Savage Jr. for failure to appear in court for the a reduced charge of the felony count.  The excuse offered to the judge was that Savage Jr. could not leave his home in Virginia due to health problems.  The judge did not buy it, and Alabama’s Assistant Attorney General is very displeased.

Assistant Attorney General Don Valeska said Savage had agreed to plead to a misdemeanor with a $2,000 fine. Under the plea, Savage would have been restricted from traveling into Alabama, banned from dealing with any athletes from the state, and required not to contact Prothro or any witnesses, Valeska said.

“Now we may take that deal off the table and just try it in front of a jury as a felony,” Valeska said. “We’ll be arresting him hopefully tonight. We’re going to put him in the national computer and if he’s stopped for a traffic stop, he’s going to be arrested and transferred down here to county jail.”

If Alabama treats an agent this way for having one of his employees recruit a student-athlete without being properly licensed as an athlete-agent in the state, imagine what the the State of Alabama would do to a guy like Gary Wichard, should he be found guilty of the state’s athlete-agent laws.  And what if Marcell Dareus had contact with a sports agent who was not registered in the state of Alabama and/or accepted an illegal benefit from an agent?

“At the appropriate time, one of these agents is going to go to jail because of a felony, but this one [Savage Jr.] we didn’t feel was the case based on the facts,” Valeska said. “We want the message to go out that nobody comes to Alabama without following the law and talks to college athletes about going pro.”

Valeska’s words remind me of something I once read from Mike Trope, author of Necessary Roughness and former NFLPA agent.  He said, “[Don't] ever represent any player that is a resident or goes to school in the state of Alabama. I am not an agent anymore, but I wouldn’t do it.”

“One Of These Agents Is Going To Go To Jail Because Of A Felony” from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Basketball

• An agent of a former UK 2010 NBA Draft pick might be in some trouble [Kentucky Basketball Players Subject of NCAA Probe].

Baseball

• Cool with the super-two. Not cool with teams manipulating it [MLBPA To Consider Changes To Arbitration Process].
• I would imagine that Matt Sosnick (Jay Bruce’s agent) is pretty happy about this [Super Two Cutoff Less Than Expected].
• A lot of reasons why Puerto Rico is poised for a comeback [Sanchez: Game regains status in Puerto Rico].
• His involvement with A-Rod [Warren Buffett: sports agent?].

Football

• NFLPA Agent Terry Bolar described the lawsuit as “a headache that in the end has made me a better person.” [Agent says he's reached lawsuit settlement with former client, Bills' CB McGee].
• Includes Marvin Demoff and David Dunn [San Diego Chargers Quarterback Philip Rivers Added to NFL 101 Lineup].

Hockey

• One of the only African-American agents in professional hockey [Eustace King: Sports Agent, Business Partner, Friend].

Shabbat Shalom: Friday Wrap-Up (7/2/2010) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Trindon Holliday has chosen to be the guinea pig of this year’s off-season, becoming the first 2010 drafted player to sign, signing a four-year, $2.713 million contract with the Houston Texans. In the NFL, rookie salaries for players drafted in the earlier rounds (especially first round) are typically highly competitive with essentially unlimited upside to earning potential.

As Holliday is the first to sign in 2010, an interesting aspect of this dilemma is when to sign. As an agent, do you advise your client to wait and potentially holdout or take a competitive offer based upon historical circumstances?

It’s difficult, as there are many indirect variables that could affect a given year’s draft scene. Signing early could also trigger an upward or downward swing for all picks above the 197^th spot, benefiting or hurting many athletes drafted in early rounds. The NFL is in stark contrast to that of the NBA where picks are slotted, with contract values descending as picks fall down the draft board regardless of the agent’s negotiation skills or leverage.

As compared to last year, with draft slot 197 (in the 6^th round) going to the Dallas Cowboys pick of Stephen Hodge, a linebacker out of TCU who received a $1.847 million contract for four years and only a $97,000 signing bonus, 2010 seems to be appreciating. Holliday is receiving $866,000 more than he would have last year – assuming all things equal.

His agent, Ian Greengross, made the right decision, because a contract would have to be signed at some point and waiting could be detrimental financially as others drafted well above pick 197 would eventually be signed, potentially hindering Holliday’s earning ability. On the same note, the longer the holdout, the less time the client has to prepare on the field with his new team for his inaugural season in the NFL.

If agents are to learn one thing from holding-out, it is the shining example of Michael Crabtree. As the tenth overall pick last year, he waited until October 7, 2009 to sign with the 49ers. His agent, Eugene Parker, took his position on the matter – disrupting a franchise and to some extent the integrity of the league. The money was there; it was waiting. Crabtree’s people were reckless – even contemplating the idea of having Crabtree sit out 2009 to be eligible for the 2010 NFL Draft.

Greengross was obviously aware of the circumstances. He knew the situation and advised well on the matter. As a lower pick, signing early just makes sense – it locks in the athlete’s contract, allows the athlete to begin involvement with the team, and benchmarks later picks against the contract and the respective signing bonus.

While it is ultimately a mutual decision between the client, his family, and the agent, one has to consider the fact that if an athlete waits, the risk only increases that a contract further down the line in the draft will be offered and signed – leaving the athlete, your client, and the athlete’s family in an unfortunate situation.

The Deal is Done – Trindon Holliday Signs Contract from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

It’s been a nice run for Daunte Culpepper.  Or has it?  Culpepper has long subscribed to a policy of negotiating his own contracts, talking to NFL teams on his own behalf, and keeping the 1-3% he would have otherwise payed an NFLPA agent.  It was almost three years ago when I claimed that Culpepper could use an agent.  At the time, he was with the Dolphins, but was more busy running his mouth to the media than attempting to show his skill on the field, which would have possibly prevented him from ending up in a trade.

Then, in September of 2008, Culpepper decided that he was going to retire from football.  Well, that didn’t exactly work according to plan…but it was definitely something that once again could have been held from the media.  SportsAgentBlog.com contributor, Dominic Perilli, said it best back in 2008, when he stated,

Throughout Culpepper’s career, Daunte the agent got in the way of Daunte the quarterback. His focus was often on his contract and getting paid rather than going out there and playing football.

Culpepper started 5 games for the Detroit Lions in 2008 and another 5 games for the Lions in 2009, and he does not want to start 5 games again in 2010.  But this time, perhaps, Culpepper has warmed up to the idea of at least having someone experienced in NFL matters help him with the process of finding a good fit.

That man is David Cornwell, whose law firm, DNK Cornwell, has the tagline, Premier Legal Resource for Sports Agents and the Men & Women Who Play Professional Sports.  Cornwell lists his expertise in law, negotiations, marketing & licensing, corporate management, and media.  Culpepper could probably benefit from most of those services.  Some other notes about Cornwell: He has served as the primary counsel for Reggie Bush (New Orleans Saints), Gilbert Arenas (Washington Wizards), Michael Beasley (Miami Heat), and Darren McFadden, and he also used to be the primary counsel for sports agents Leigh Steinberg, Jeff Moorad, Eugene Parker, Dan Fegan, and Michael Gillis.

Culpepper says that he will still negotiate his own contracts, but will retain Cornwell as an advisor.  Whatever the case may be, I believe this is a step in the right direction for Culpepper.  This should have been done years ago.

Even Daunte Culpepper Needs Help from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Anyway, since many collegiate football players can now sign with an agent in compliance with all rules and regulations, it is important for them to be aware of some tips that may guide them in the selection process.  If you are an athlete or parent of an athlete reading this blog, go ahead and read over this sheet released by the NFLPA.  If you are an agent trying to secure an athlete as a client, send it off to that potential client.  I assume that he will appreciate the fact that you are going out of your way to help him protect himself considering the importance of the decision he will be making.

In the short memo, this paragraph stuck out to me:

Hiring an agent who has the most experience or who has represented the most number of players is not necessarily the best choice. There are more than 750 certified agents with varying degrees of experience and numbers of clients. “Just because an agent is less experienced or works at a smaller firm does not necessarily mean he or she can’t provide the same level of service or expertise in contract negotiations,” [Mark] Levin, [NFLPA Director of Salary Cap and Agent Administration] said.

Think about the selection process as a buffet.  If you are on any of the myriad of draft boards published by a variety of publications and websites, I am sure that you have at least a handful of agents looking to represent you.  Each agent has his or her selling points and all are different in their own ways.  What are you looking for?  Is it an agency that has a ton of clients and has the resume and experience to make you feel calm going into the draft?  Or are you looking for a smaller group that will put you at the top of its agenda and put a great amount of energy into making sure every GM knows who you are and what kind of cereal you eat in the morning?  One thing to remember is that every agent and agency started somewhere.  Even Drew Rosenhaus, who know has more clients than he does cell phones (has to be at least 50, right?), had to convince his first client to choose him over someone else who had a large client base at the time.

Selecting Your NFLPA Agent from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

“[Don't] ever represent any player that is a resident or goes to school in the state of Alabama. I am not an agent anymore, but I wouldn’t do it.” – Mike Trope, author of Necessary Roughness and former NFLPA agent.

Trope was quoted in SportsBusiness Journal (subcription required) in reference to the Raymond Lee Savage Jr. story that I have reported on in the past.  Do Alabama’s notoriously tough agent laws truly create such a high risk of potential penalty that it is clearly not worth recruiting in the state?  A potential verdict of ten-years in prison for Savage for failing to register as an athlete agent in Alabama (Class C felony)…seems like quite a hefty consequence.  I am having a tough time trying to argue with Trope’s opinion.

Don’t Represent Alabama Athletes? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Raymond Lee Savage Jr., the CEO and President of Savage Sports Management was an All-American linebacker at the University of Virginia.  He has negotiated over 60 player contracts as a player agent.  He was arrested and taken into custody last Thursday.

In the end, all the money that you may receive by trying to circumvent the imposed rules is not worth it.  No one wants to be arrested or go to jail, and all of the money in the world cannot make you happy if you end up behind bars.  Universities and state authorities are cracking down and getting serious about prosecuting agents who violate NCAA rules and regulations.  This is most evident in southeastern states like Alabama and Arkansas.  Do yourselves and your clients a favor by adhering to the rules, keeping the playing field level, and resisting the urge to get a quick buck by jeopardizing others’ futures (NCAA athletes).

Bad News Out Of Newport News from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

In 2004, the NFLPA conducted a survey of its agents and found that more than two-thirds of its 800 certified contract advisors did not have any insurance. For those who said they did have insurance, further review showed that most did not have insurance covering their activities as an agent, only for their law practice activities. When these survey results were revealed to the NFLPA Board of Player Representatives, they responded by voting in 2005 to make insurance mandatory for agents in order to maintain their certification in good standing. Today, the NFLPA is the only major sports union to require insurance for its agents.

The insurance covers agent activity such as providing services to NFL players in the negotiation and enforcement of their NFL player contracts, and providing advice to players with respect to the protection and enforcement of their rights and benefits under the CBA.

The NFLPA is working with Capital Professional Insurance Managers (CPIM) to provide an insurance product designed for this coverage. This year the premium has been reduced for the third consecutive year to rates starting at $1,750. Players or agents with questions should call Athelia Doggette in the NFLPA Agent Administration and Salary Cap Department.

The life of an NFLPA agent is tough.  You must pay a $1,650 non-refundable application fee, earn a post-graduate degree, travel to Wash D.C. for a two day seminar followed by a written exam (which supposedly only has about a 60% passing rate), continue to attend an NFLPA seminar every year, negotiate at least one player contract within every three-year period that you are certified, AND pay for insurance yearly.  All to be rewarded a maximum of 3% on a contract that you negotiate for a client.  But in the back of your mind, you still are driven by the story of Jerry Maguire, right?

NFLPA Mandatory Insurance from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules