Before getting into Cornwell’s arguments, it is worth taking a moment to consider who David Cornwell is and how he is so delicately connected to the NFLPA and the players that the association represents.  First of all, Cornwell went up against DeMaurice Smith for the title of Executive Director after the late Gene Upshaw had passed away, leaving an opening at the top position in the NFLPA.  Cornwell has over 20 years of expertise in the professional sports industry, representing professional athletes and sports agents in their legal affairs.  To be clear, Cornwell is not an NFLPA Contract Advisor himself, but he has been retained by NFL players and NFLPA Contract Advisors for various types of legal matters, including representation with regards to grievances through the NFLPA’s mandatory arbitration process.  In the past, Cornwell was Vice President and General Counsel of Upper Deck Company and Assistant General Counsel for the National Football League.  Suffice it to say, Cornwell knows the ins and outs in the world of professional football.

Cornwell’s observations are cleanly broken up into various sections.  The longest section of his memo concerns the new NFL Collective Bargaining Agreement (CBA) that was signed in 2011.  The other sections include a discussion of Terrelle Pryor’s suspension, the new NFL Drug Policy, the NFL’s Conduct Policy, and the NFLPA’s apparent lack of care for enforcing agent regulations.

As stated, the bulk of Cornwell’s memo reveals his dismay about the newly established NFL CBA.  He explains that players were misguided into believing that they would receive 47% of literally all NFL revenues, when in fact, that percentage is based on net revenues, and not gross revenues as was contemplated by the previous agreement.  Cornwell also states that the use of the term “True up” is misleading and that the idea of “Revenue Buckets” is a red herring.  Other issues are discussed at length.

Cornwell was tacitly involved in Terrelle Pryor’s suspension as Pryor’s retained attorney.  Cornwell’s main issue is the way that DeMaurice Smith accepted a five game suspension for Pryor without following up with Pryor and/or Cornwell after Pryor answered some questions posed to him by Smith.  The way that Cornwell explains it, the NFLPA advised the media that the NFLPA urged Pryor and Cornwell to reject the five game suspension (which Cornwell says was false), Cornwell announced that he would appeal the decision, and then DeMaurice Smith demanded Pryor’s agent to provide Smith with a letter promising that the suspension would not be appealed.  Cornwell uses words like “baffling” and “deceptive” in his memo.  The story he paints makes me question what was going on behind closed doors.

I’ll skip the Drug Testing and Conduct Policy issues and jump right to Cornwell’s final section: Agent Regulations.  The following excerpt from Cornwell’s memo will probably not surprise the readers of this website.

In the Conclusion section of Cornwell’s memo, he wrote, “Despite my greatest hopes, my personal experience reveals that De’s vision in 2008 was little more than an inside Washington political campaign — high on style, low on substance. De’s grandiose pronouncments did not translate into meaningful progress in the business of playing football. Rather than  advancing the partnership between players and team owners, the new 10 year CBA relegated NFL players’ status to mere employees.”  Cornwell is “stunned at what the NFLPA has become under De’s leadership.”  Cornwell recognizes that DeMaurice Smith is not required to answer the memo, and in all likelihood, Smith will probably resist making any comment.

David Cornwell Stunned At What NFLPA Has Become Under DeMaurice Smith’s Leadership from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

On March 20, 2004, a man by the name of Darrell Wills made a written proposal to current Baltimore Ravens wide receiver Anquan Boldin whereby Boldin would provide Wills with $170,000.00 for the purpose of Wills creating a sports agency called, Imagine Sports International (ISI).  The proposal included a promise by Wills that he would repay the $170,000.00 loan plus interest within five years.  It also established that Wills would only charge Boldin 2.5% on his professional contract instead of the NFLPA maximum 3% commission and handle all of Boldin’s marketing for only 15% commissions instead of 20%.  Wills signed a promissory note that same month.  More than five years elapsed and Wills failed to pay Boldin the $170,000.00 much less the interest.

In 2011, Boldin filed a Complaint for Damages and Determination of Dischargeability of Debts.  Wills had previously filed a voluntary petition for relief under Chapter 7 of Title 11 of the United States Code.  In the Complaint, Boldin made sure to point out that pursuant to the rules of the NFLPA, agents of NFL players are prohibited from borrowing money from their clients.  Boldin filed a Motion for Entry of Default Final Judgment, which the Court granted.  The Court stated that Boldin was due $280,115.28.

It is unknown whether Boldin has received any of that money.  Perhaps he appropriates some more time to recouping his money now that the Baltimore Ravens’ season has come to a close.

Anquan Boldin’s Former Agent Owes Him A Boatload Of Money from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

• There is a $2,500 application fee (an increase of $1,000 above the fee from 2 years ago).
• The NFLPA will conduct an extensive background check after the fee is submitted.
• All applicants must attend the 2012 New Agent Seminar and take the exam.
• Applicants can expect to become fully certified on or about October 1, 2012.
• Applications must be filed by February 10, 2012.

NFLPA Contract Advisor Applications Are Now Online from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

The NFL’s decision is an interesting one.  Underclassmen have until January 15 to declare for the Draft and until January 18 to withdraw their names.  The NFLPA Collegiate Bowl will not take place until January 21.  Thus, the concern that scouts will be in person watching players who still have student-athlete eligibility is moot.  But a rule is a rule, and the NFL has put its foot down.

No NFL Scouts Will Attend Inaugural NFLPA Collegiate Bowl from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

In 2011, the NFLPA provided absolutely no window for interested individuals to apply.  On December 22, 2010, the NFLPA issued a notice explaining that it cancelled its normal application process because of the “uncertain circumstances surrounding the CBA and the possibility of a lockout of our players by the NFL and its clubs after the expiration of the CBA.”  As we all know, the NFL and its clubs did, in fact, lockout the players.

Now that the lockout is well behind us and the NFL has resumed play, the NFLPA is once again opening its doors to people who wish to apply for certification as Contract Advisors.  However, this year, applicants will have the opportunity to apply as late as February 10, 2012.

The NFLPA has delayed accepting applications.  Instead of taking applications starting on January 1, 2012, the first day to submit an application is anticipated to be January 15, 2012.  After February 10, 2012, no new applications will be accepted.

On January 15, 2012, you should be able to click here and submit your application electronically.

NFLPA To Accept New Contract Advisor Applications On January 15, 2012 from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

A variety of new college football all-star games have sprouted up since the announcement that there will be no Texas vs. The Nation All-Star Game.  A few days ago, the NFLPA declared that it would have its own game called the AstroTurf NFLPA Collegiate Bowl.  The NFLPA has partnered with IMG Worldwide on the event.  The game will be played at the Home Depot Center on the campus of California State University Dominguez Hills in Carson, CA on January 21, 2012 and is expected draw a lot of players from the Southern California region.

The press release for the event states that the game “will showcase the top draft eligible collegiate football players from across the country.”  Some agents have contacted me expressing concern with that language.  They believe that opening up the game to all draft eligible players, including Juniors who declare for the NFL Draft, will prevent NFL teams from sending their scouts to the game.  One NFL team Personnel Director has said that teams received a letter earlier in the year informing them that they are not permitted to attend games that include underclassmen.

On the surface, it appears that as long as the game does not allow draft eligible Juniors who have not yet declared for the NFL Draft to perform, then NFL teams should be willing to send their scouts.  An issue is if the game allows all eligible players whether they have declared or not.  James Guidry of the NFLPA has informed me that those who have declared are eligible to play in the game.  However, does it matter?  Are Juniors who declare for the NFL Draft no longer considered underclassmen?  My argument is that they are still underclassmen until they sign with an agent and/or the deadline to pull their name out of the NFL Draft has passed.  Thus, if the NFLPA is accepting non-represented Juniors into its game, whether they declared for the NFL Draft or not, that decision could effectively prevent NFL teams from sending their scouts to the game.  And what NFL Draft prospects want to perform in an extra game if no decision makers will be there?

Inaugural NFLPA Collegiate Bowl May Have An Eligibility Issue from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

After not receiving a favorable response, Marshall’s office filed a petition for an order to compel the NCAA to release the documents.  The NCAA objected on jurisdictional grounds, claiming that Marshall should have filed the petition in Indiana (the NCAA’s principal place of business) instead of North Carolina.  The hearing on the petition commenced two days ago in the Wake County, North Carolina Superior Court.  Instead of ruling one way or the other, the judge (Judge Paul C. Ridgeway) provided the parties an additional 60 days to attempt to resolve their dispute; however, Ridgeway did state that Marshall’s office should re-file the subpoena in Indiana.  The NCAA’s attorney promised that the requested documents will be delivered, in unredacted form, thereafter.  The petition filed by Marshall’s office noted that the NCAA previously aimed to redact “confidential information.”

Now that the NCAA has changed its stance, the assumption is that the State of North Carolina will file the subpoena in Indiana and gain access to the documents.  Perhaps at some point in time, the state will be able to get to the bottom of many agent related issues, including the relationship between John Blake and Gary Wichard.

North Carolina To Gain Access To NCAA Documents On Agent Activity from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

What: 

When:  Thursday, October 27, 2011 (4:00-5:30 p.m.)

Where:  American University Washington College of Law (Room 602)

AU WCL’s Sports and Entertainment Law Society is hosting a panel discussion regarding the athlete-agent relationship, NCAA regulation of athletes, and the impact of legislation concerning both subjects.

Panelists

• Moderator: Kevin Blackistone, Panelist on ESPN’s Around the Horn
• Howard Shatsky, Certified NFLPA Contract advisor and WCL professor
• Mark Levin, Director of Salary Cap and Agent Administration at the NFLPA
• Patrick Nero, George Washington University Athletic Director

Cost: Free. Registration is required for all attendees.  Click here to register and make sure to choose the 10/27 event on the drop-down menu.

American University Washington College of Law Sports Law Panel from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

The names of the marketing representatives designated on the MRNs will be released by NFL PLAYERS to interested third parties.  It is suggested that all players with exclusive marketing representatives fill out the MRN form and send a completed original to the Player Services department at NFL PLAYERS (NFL PLAYERS, Attn: Dexter Santos, Player Services, 1133 20th St, NW, Washington, DC 20036).  NFL PLAYERS suggests that completed MRN forms be sent by certified mail or overnight delivery.

The MRN form is embedded below.

NFLPLAYERS MRN

NFL PLAYERS Requesting Marketing Representation Notices (MRNs) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

I am on my way up to Gainesville, Florida to return to my alma mater (undergrad and law school) and watch the Gators take on the Alabama Crimson Tide.  I can’t wait to see a lot of friends and watch some good football under the lights at Ben Hill Griffin Stadium (8 p.m. kickoff).  I will return on Sunday and then it’s off to the new office on Monday.  The new law firm is called Wolfe Law Miami.  It will be myself and Richard Wolfe, a very experienced entertainment law attorney.  Our office space is in Brickell (right next to downtown Miami, Florida) in the penthouse of a beautiful building.  Here are some stories I missed over the past week:

Basketball

• David Falk: “I would bet a lot of money that if we miss one or two games, we’re going to miss the whole season.” [Sports agent Falk says entire NBA season is in jeopardy]
• The ultra-punitive measures alternative [NBA owners budge on hard cap demand].
• Tyreke Evans is being counseled by Arn Tellem and “Team Tyreke” [Don’t Curb Your Enthusiasm].

Shabbat Shalom: Friday Wrap-Up (9/30/11) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules