Football

• Referring to Arn Tellem, Wasserman stated, “I’m fortunate enough to get to call him a good friend” [Casey Wasserman: Why I Want an NFL Franchise in L.A.].
• Teague Egan is back, and he wants to build the next Nike [How A 5-Minute Golf Cart Ride Paved One USC Student's Path To Building The Next Nike].
• Nice rap sheet on the attorney [Sources: Former Ohio State football player tipped Tressel to player investigation].

Baseball

• Not quite as much as Boras Corp. [Legacy Sports Group Brokers Over $300MM].
• Issues may include an international draft, mandatory slotting in the draft, expanded playoffs, increased drug testing, lower luxury tax threshold, eliminating the “super two,” etc. [The ABCs of Baseball’s Next CBA].

Basketball

• It all started with the recruitment of Kevin Walls [How Calipari's Relationship With Worldwide Wes Began].
• Read. Of. The. Week! [Industry Insider: Legendary Agent David Falk [Part 1 / 2]].
• Which means you have to read Part 2 [Industry Insider: Legendary Agent David Falk [Part 2 / 2]].

Sports Agents

• The agent is David Arluck of Arluck Promotions [Athlete, agent share 'little steps' to success (with video)].

Shabbat Shalom: Friday Wrap-Up (3/11/2011) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Yesterday, I had the opportunity to speak at length with Teague Michael Egan, who was rather receptive to speaking to me on the record.  After letting the media talk for the past week or so, Egan was ready to tell his story.  Egan was home for the Thanksgiving holiday, and was not taking a break from trying to build his company, 1st Round.  In fact, he was headed to Pine Crest High School, one of the two high schools in South Florida that he attended prior to enrolling at USC.  Pine Crest has an exceptionally talented basketball program; University of Kentucky freshman Brandon Knight is a graduate of Pine Crest.  Later that day, Egan planned on visiting St. Thomas Aquinas, the second South Florida high school he attended.  He was on the school’s golf and track team; St. Thomas is known nationwide as having one of, if not the, toughest football programs.

Egan was born on July 6, 1988, making him 22-years-young at the date of this article being published.  I believe that Egan felt comfortable speaking with me, as I had also started my own sports agency at the age of 22, as an undergraduate at the University of Florida.  The following contains the parts of our discussion that have not yet been mentioned.

Darren Heitner: Why did you transfer from Pine Crest to St. Thomas Aquinas in high school?

Teague Egan: I transfered from Pine Crest to St. Thomas Aquinas in my Junior Year.  My brother [Riley Egan] wanted to transfer because St. Thomas had a much better track team, which ended up winning the state championship after the transfer.  I was and still am very close with my brother, and I wanted to go where he went.  My brother runs the Pictures Division of 1st Round.

Heitner: What gave you the idea to start 1st Round?

Egan: I was in between businesses.  I had started a couple businesses in high school and college.  These were big business ideas.  I felt like like I was over my head, though.  I had just pledged a fraternity called Phi Psi.  Sterling Brewster was in my pledge class; he became a partner in 1st Round.  A couple of football players also pledged the same fraternity.  Daniel Harper, Everson Griffen (drafted by the Minnesota Vikings in the 4th round, but Egan referenced him as a projected 1st round pick), Spencer Spiegel, and Jordan Campbell all pledged with me.  I became great friends with Everson, Daniel, and Jordan.

In the Spring of Sophomore year, I went to Jordan and said that should start a business.  I came up with the name “1st Round” because a lot of my boys were going to be drafted in the 1st Round, and I thought it was cool.  I grew up with signed helmets, footballs, and jerseys all over my room.  I played 5 sports in high school.  I had season tickets to the Heat and Dolphins.  I loved sports.

I started throwing parties with Jordan.  We went head-to-head with 28th Street Entertainment (Egan stated that this was USC’s top nightlife promotion group).  We threw an entire party for free, but negotiated a huge percentage of the bar.  We provided free transportation to club, free admission, and blew 28th Street out of the water.  The party was packed with hundreds of kids from USC, UCLA, and LMU.  We lost money on the party, but 1st Round Entertainment was officially established.  I was busy throwing parties, having great times with friends, and had an “in” with all the cutest girls.  All of Jordan’s friends on the USC football team started coming to my parties as well.

That summer, I was up on Nantucket Island on the beach hanging out on the 4th of July.  One of the guys I brought out to the beach was the best freestyle rapper I knew.  It suddenly hit me that that I wanted to start a record label.  At the time, I was questioning the success of 1st Round Entertainment, because I was throwing fun parties, but losing money.  But I  had a good name.  I started the record label and signed Sam Adams (the freestyler who accompanied him to the beach).

I first named my record label “Lazy Boy Records.”  I decided to change it, though, and make all of my companies reflect the 1st Round Brand.  I made the decision to do so after reading a book about branding that was written by Richard Branson.  I liked the whole “Virgin” idea and keeping everything under the same brand.  In the near future, I will be doing a management deal with Lady Gaga’s management, for Sam Adams.

Anyway, when Jordan transferred to Louisville, we started the sports agency.  The division is far bigger than negotiating 3% for the athletes we represent.  We want the sports division to be the next Nike.  We don’t want to just deal with contract negotiation.  Instead, we want to manufacture merchandise and apparel.  I structured 1st Round after Nike.  Nike has the swoosh, 1st Round has the wings; easily identifiable.  The slogan is also based after Nike.  Theirs – “Just Do It” vs. ours – “Go Higher” – everyone can identify and relate to it.

Heitner: But it does seem like you also want to represent athletes, no?

Egan: I officially became certified by the NFLPA on October 1, 2010.  My Nike goal is down the road.  I want 1st Round to be a “full service sports franchise.”  The word “agent” has such a negative connotation.  We will provide anything the athlete can want.  I want to do a lot of athlete branding.

Heitner: What is the make-up of your company?

Egan: I structured my company with 6 different divisions.  Each division has a different President.  I also incorporated the “crossover effect,” where each division can help out the others.   Sports, records, pictures, entertainment (parties, but I eventually plan to own restaurants, clubs, entertainment venues), capital, and philanthropic.

Heitner: Tell me a little more about your capital division.

Egan: This division began based on my and my dad’s background.  I have has several investments in many fields, stocks and bonds (he says that Apple is his biggest holding), money in BlackRock, global allocation funds.  The main area that I am looking at is venture capital and investments into small, upcoming businesses that have huge potential for growth.

Heitner: What are your thoughts on what has been written about you thus far?

Egan: What I have done is almost revolutionary. I have gone into unchartered waters. I am one of, if not the youngest certified agent, and I am an undergraduate student at a university.  Everything that has happened is absolutely ridiculous.  It is such a unique situation.  The rules are in place to prevent people like Cam Newton from getting $180,000 or Reggie Bush from having houses bought for his parents, not to prevent students from getting rides in golf carts from other students.  They try to stress “student” coming before “athlete” in almost everything.  If you want to claim that, then I am a “student” first and then an “agent”.  Call me a “student-agent.”

Heitner: People are calling out the NFLPA for granting you certification while you are a still a student.  What do you have to say about that?

Egan: Athletes should be able to have whoever they want represent them, as long as the person has experience and capability to represent properly. The fact that I am a student should not prevent me from representing an athlete. If a student has sufficient negotiating experience that meets the qualifications the NFLPA deems acceptable, there is no reason he should be denied.  I am a born negotiator.  I have a lot of negotiating experience.

Heitner: What about the criticism regarding Jordan Campbell, a current student-athlete, being a part of your organization?

Egan: Jordan never actually signed the LLC documents.  I believed that it was a bad idea and a potential conflict.  I am going to wait until after his eligibility to make him an official partner.

Heitner: What is your plan for 1st Round Sports in the immediate future? Are you going to wait until the criticism subsides before you go out and recruit players?

Egan: Now that this all happened, I have to watch myself and stay within the rules even tighter, but I am not going to sit back.  The #1 thing was to make sure that my friends did not get hurt.  Now that they are back and reinstated, I feel free to talk with the media.  I will be putting the golf cart up on Ebay and will have some of the proceeds go back to USC Football.  I am looking at baseball and basketball on top of football, and already represent an MMA fighter (Ryan McMahon) and have connections to the UFC.

Heitner: What about the threat of getting in trouble for rules violations?

Egan: Rides to clubs, free entry to clubs, and golf rides around campus were given to everybody.  There was no special treatment being given to athletes.

Heitner: What kind of advice would you like to give people who dream of becoming sports agents?

Egan: It’s all about relationships.  How is anyone supposed to be a sports agent if he is not friends with the athletes and is some random 30 or 40 year old guy?  It is all about trust.  I have amazing relationships with the guys.  They know and trust me.  It’s not the grades you make, it’s the hands you shake.

Interview With The Agent: Teague Egan from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Shortly after the event, I begin experiencing “light bulb” moments with considerable questions. Why are the women of the WNBA and “star players” not securing more endorsement contracts? If the players obtain more endorsements, will it support the WNBA brand more effectively in communities? How can agent advocates secure more endorsements for their female clients?

Women are the leading consumers of products and services in various industries such as retail, automotive, social media, and even sports merchandise (i.e. NFL). Research over the last ten years proves there has been a shift of purchasing power in American households. More women are heading households, more women are career oriented, more women are becoming entrepreneurs, and more women have the power to make choices that affect the family. Teenagers are big consumers too.

The WNBA specifically directs marketing strategies to women and families in metropolitan cities. The market is segmented to include women and the community. The emotional appeal is the feminist type of mentality.

Based on this information, one would think players in the WNBA could attain a significant amount of additional monies via endorsements. However, it is not true.

If we examine women’s tennis, the endorsement contracts are very lucrative (female golfers are not far behind). For example, Maria Sharapova leads female athletes in endorsements with an estimated at $26 million (Nike, Sony, Canon, Motorola, and Pepsi). Serena Williams is second with an estimated $14 million (Hewlett-Packard, Nike, and Kraft) and Venus Williams is third with an estimated $13 million (PowerAde, Nike, Wrigley’s, and Reebok). Some of us can read between the lines and conclude Maria Sharapova has secured more endorsements due to her physical appearance. She has not won as many majors or titles as Serena Williams.

Consequentially, physical appearance does impact athletes’ opportunities of securing endorsements. It is called the athlete’s marketability. The marketability depends on tangible and intangible factors. Level of skill and success are tangible factors. Image, charisma, physical appearance, and personality are the intangible factors. The intangible factors are the consumers’ perceptions.

So, when we look at the women of the WNBA; many of the women are physically attractive, some are mothers, some are very charismatic with huge personalities, and most are skillful athletes. Candace Parker is the first name that comes to mind.

She is attractive, wife, mother, and personality with notable image. She is believed to be the new face of the WNBA. Unfortunately, I found numerous articles questioning whether Candace Parker’s first pregnancy would hurt the WNBA. It was deliberated because she is the “face” of the league, but had to take a maternity leave for most of the 2009 season to give birth. Even though Candace would not start the 2009 season with the team, I thought this would be an enormous opportunity for the league to expand marketing to a broader audience.  The  opportunity and possibility of Candace’s agent securing more endorsement contracts with corporations targeting women and mothers could have been developed.

Agent advocates need to understand clients’ marketability for potential placement as spokespeople and for obtaining endorsement contracts. We need to understand the league’s or organization’s marketing strategy. If a client is marketable and wishes to seek endorsements, what organizations can we approach that are supporters and an integral part of the marketing strategy?

Hence, leading us to ponder more questions such as: what companies or corporations are considered the “best fit” for a client seeking endorsements or sponsorships? Is the client a good match for an organization inquiring about a spokesperson? Is the relationship good for the client’s image?

Marketability is important for endorsements and sponsorships. I am shocked a majority of women in the WNBA have not acquired major endorsement deals. Hopefully, agent advocates will begin to initiate this change. We can improve the visibility of our clients and increase the revenue stream for our clients and organizations.

WNBA: Endorsements and Marketability from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

30 percent of the sales of Tebow’s jersey have come from the state of Florida, where Tebow grew up and starred at the University of Florida.

That’s no surprise, considering the large fan base he had already built up while at the University of Florida. With the addition of Tebow, the Denver Broncos are also the #1 selling team right now on NFLShop.com

With the celebrity status and star struck fans, Tim Tebow really wants to prove himself as more than just a name on a jersey. Even after his controversial Pro Life, Pro Family commercial had aired during the Super Bowl, he still received endorsement deals with EA Sports and Nike. Although he is endorsing EA Sports and Nike, Tebow has declined other endorsement offers, including some worth more than $1Million. Why would he turn down this much money? The answer is simple; he wants to focus solely on playing football.

You can see from his hyped up change in his throwing motion, the declining of other endorsement deals, and his proven work ethic, that he is driven to become a successful quarterback in the NFL. However, I am sure that there are going to be plenty of accepted endorsement deals in the near future. Over the next few months, we will see the steps Tim Tebow will take leading up the first pre-season game on August 15, against the Bengals in Cincinnati.

Did You Get Your Tim Tebow Jersey Yet? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

In less than a week, the discussions over what team will pick Tim Tebow, and at what position in the draft, will be gone.  We will know where Tebow will call his new home (where you will buy NFL tickets to go see him) and whether he was a first, second, or third round pick.  No matter what round Tebow is selected in, he is already profiting off of the popularity of his name appearing over and over again on paper and on television.  On January 4th, I predicted this would be the case.  The fact that so many people had something good or bad to say about Tebow and his “ability” made him newsworthy every day leading up to the draft.  As I wrote a few months ago,

Tim Tebow shows his emotions.  If he is not smiling on the field, he is probably crying, but he is a guy who any team would want on their side and any company would want endorsing their products.  Whether he makes it as a professional Quarterback or not, he will be successful in life and a great return for any company that invests their money in him.

Nike agreed by giving him roughly $300,000 per year (plus heavy incentives) in a shoe and apparel deal.  Meanwhile, Tebow is signing autographs at $160 a pop.  Don’t worry – Tebow is donating a lot of the money he earns – only making him even more marketable.  And a good friend of mine, Ryan Totka of AthletePromotions.com, has been busy booking Tebow in speaking engagements for college, churches, and corporations.

So when I read that,

Multiple companies told him before the Super Bowl that they could not let him represent their products if he went ahead with his pro-life commercial at the Super Bowl. But Tebow said losing sponsors was a small price to pay for the ability to spread his message about family and faith.

I didn’t feel too bad for him.  He said that comment in a paid speech at Lipscomb University.  He has Nike and EA Sports (who named him NCAA Football 11 Cover Athlete) feeding him money.  He continues to be on top of the world.  As I said to Nathan Crabbe of The Gainesville Sun back in January,

“He will be getting endorsements before he even touches the ball. Tebow’s display of Bible verses in his eye black means most people already associate him with his religious beliefs. Even fans who support abortion rights might respect him for standing up for his beliefs”

The More You Talk About Tebow, The More Money He Makes from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Football

• Definitely a smart business move by Nike [Nike signs Tim Tebow].
• Fletcher Smith had determined that Washington was the best place for McNabb [McNabb's agent: Trade to Redskins "was the desired outcome"].

Baseball

• Hoping this continues a shift in scouts ethically recruiting Dominican players [White Sox hire Krause as consultant].
• NY to Milwaukee – “stop whining” [Levine calls out Brewers owner].
• Lock up their ace for a max of $42.5 million [Gallardo, Brewers agree to contract].
• An agent friend agrees with my re-branding statement [What's in a Name?].
• Investigation is far along but not yet complete [Players union might file grievance against owners].

Basketball

• A potential future movie about Paul Millsap and his uncle/agent DeAngelo Simmons [Utah Jazz: Paul Millsap may soon be at the movies].

Shabbat Shalom: Friday Wrap-Up (4/9/2010) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Basketball

• Supposedly with a term that is longer than 7 years [LeBron James Signs New Deal With Nike].

Baseball

• Interesting read on a player who is already being named this coming year’s NL Rookie of the Year [Stealth scouting helped Braves land Heyward].
• While Major League salaries are at all time high, Minor Leaguers are still struggling to get by. A must read for baseball aficionados [Playing For Peanuts].
• You need to know the current state of Taiwanese baseball before sending your clients to play there [CPBL Tries To Clean Up Its Act].

Football

• 6-years, $48 million for the linebacker. $21.75 million guaranteed [Sources: Ryans, Texans agree to deal].
• You think agents are ruthless and unethical now? [Agents: a player's not-so-fond memoir]

Sports Law

• Players may actually lose money on the days they play in Tennessee? [Taxing professional athletes]

Shabbat Shalom: Friday Wrap-Up (4/2/2010) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Adidas and UCF discussed this matter again last week and could not find a middle ground on this situation. Before  making the decision to halt the contract extension with the University, Adidas spokeswoman Andrea Corso said, “We are in negotiations for a future relationship regarding the broader UCF athletic program. What I can say is that these relationships are based upon agreed deliverables for both parties.” Ultimately, Adidas said they were not willing to bend the rules, even for a Jordan.

If UCF did not allow Marcus to wear Nike’s, they could have lost Marcus Jordan as an athlete. Jordan was very persistent and was never seen wearing anything but Air Jordan’s. He even said that this issue was discussed on his recruiting trip to UCF. The only real option the University had was to amend the prior contract between Adidas and allow Marcus Jordan to be the exception to this sponsorship agreement. UCF athletic director Keith Tribble said Jordan could make his own choice on what shoes to wear.  He also mentioned that he wouldn’t be the first athlete at the school to get permission to wear something other than Adidas (a football player wore a different pair of shoes because of a better fit). However, the athlete in this situation was Michael Jordan’s son and the media attention and spotlight were shining bright on the athletic company.

This may seem like a silly dispute over shoes, but the effects of little Jordan’s actions are much more serious. The real issue here is a contract dispute; however the attention this story received will surely have an underlying effect on the current debate about intellectual property rights for NCAA athletes.

Are all student athletes bound by what sponsor the school has chosen or do they have any individual rights? What rights are college athletes giving away by signing with a school and playing college sports?

This is only one of the many conflicts that have arisen lately around the nation regarding college athletes and the rights they have while in school. Last year Nebraska University quarterback Sam Keller filed a lawsuit against video-game company Electronic Arts and the NCAA stating that they were illegally using the images of college football and basketball players in video games without their permission or compensation. Other related intellectual property cases are still pending and awaiting trial. The court will soon have to address the broad range of activities that athletes consent to give the universities when sign their name on the dotted line and agree to play for that school.

Jordan’s Heir Still Wears the Air Jordan from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Personally, I think MJ’s son has a legitimate reason for not wearing his team shoes.  But isn’t college basketball more about the team and not the individual?  How would it look if Marcus was the only one on the team wearing brand new Jordan’s that haven’t been released yet?

On a more serious note, the University of Central Florida has a 3 million dollar, six-year contract with Adidas.  This contract  requires all UCF athletes and coaches to use only Adidas apparel and equipment.  If Marcus wears his fathers Nike’s this will clearly be a breach of contract and with the last name of Jordan, it is likely to cause a big scene.

Adidas said they were aware of Marcus Jordan’s attendance at UCF and on the basketball team, and will be working to resolve this “unique” situation without causing too much controversy.

Although this may not seem like a big deal and some of you may think little MJ should be able to wear his fathers shoes, it has very serious legal and athletic ramifications for UCF.  If Adidas and UCF can’t find a middle ground with this situation and Marcus wears Nikes, the University may be liable for breach and owe  damages up to $3 million dollars to Adidas.  On the opposite side, if UCF does not allow Marcus to bend the rules and amend the contract, they may lose Marcus Jordan (if he cannot be persuaded to switch to Adidas).

The battle of the footwear seems silly but surely has some serious ramifications for UCF.

Would Jordan Ever Wear Adidas Shoes? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

In every generation, one athlete makes a bold move, laces up a new pair of shoes never seen before, and does something that turns the footwear industry on its head.  In 1936, Adi Dassler came to the Berlin Games with a suitcase of track spikes and persuaded Jesse Owens to give them a try.  When Owens won 4 gold medals, he was catapulted to superstar status along with the adidas shoes he was wearing.

32 years later, when Tommie Smith took the 200M gold in the 1968 Mexico City Olympics, he stood on the podium with a clenched fist high above his head and a pair of Puma suede shoes at his feet.  Walt Frazier would also don Puma shoes that year, triggering a fan base a million strong to follow “Clyde’s” impeccable style.

On the heels of Michael Jordan, basketball-newcomer Nike soared past the competition in 1985 with the release of the Air Jordan line.  As we approach the silver anniversary of MJ’s grand entrance into the NBA, Nike still reigns supreme in the sporting goods industry.  History tells us that can change instantly when a star athlete bucks the norm to begin a different movement.  The next seismic shift in the shoe landscape could be on the horizon, or overseas to be more exact.

Brandon Jennings has been a trendsetter since he skipped out on college hoops to play professionally in Italy for his “purgatory year” between high school and the NBA.  On the business side of the game, Jennings signed a deal to be Under Armour’s first basketball endorser.  The Maryland-based company is betting millions that Jennings can be a catalyst for a new generation of shoes and are promoting Brandon with his very own website (wheninrome.underarmour.com) and the “Young Money” prototype kicks that have all the sneaker blogs buzzing.

The Under Armour of today parallels the pre-Jordan Nike in many ways.  Both built strong brands in other markets (Under Armour in performance apparel and football, Nike in running) before breaking into hoops.  To gain entry into the lucrative basketball shoe market, they signed young standout players on the cusp of entering the league.  Both Jordan and Jennings were innovators mentored by the sneaker guru himself, Sonny Vaccaro.  Will the similarities end there?  We won’t know for some time, but the battle over the feet of ballplayers and the thousand of kids that follow their steps is overdue for the next big shoe craze.  Maybe the next big shoe tagline will read, “Be Like Brandon.”

Book to Read:  Sneaker Wars by Barbara Smith (http://www.amazon.com/Sneaker-Wars-Brothers-Founded-Business/dp/0061246573)

Article to Read: The Last Don by Ric Bucher (http://espn.go.com/magazine/vol5no23vaccaro.html)

Under Armour, Brandon Jennings, and the Next Epic Shoe Deal from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules