I have been given the opportunity to attend seminars associated with a newly designed course to help students learn more about the Athlete Representation Industry. Run over seven sessions, the course covers areas such as Managing a Client’s Career, Ethical Considerations, Medical and Endorsements to name a few. University students are eligible for funding, making it an attractive proposition for people who are interested in pursuing a career as a Sports Agent.

The first session I attended was in regards to Negotiations and Industrial Relations, which is very topical at the moment considering the NBA has just got out of its lockout and the Australian Football League (AFL) is still resolving its new agreement. The seminar covered areas such as Planning, Contracts and Dispute Resolution. I will now go into further details regarding the areas discussed.

The day started off with a talk from one of the most respected people in the business, Paul Yeomans. Paul had previously worked as an AFL Agent for Stride Sports Management, but has moved into Consulting. Through his business, PMY Consulting, Paul has consulted many top companies, but more importantly the AFL Players Association in regards to its new Collective Bargainning Agreement (CBA). Paul explained that the AFL CBA process is a lenghty one, with there being 8 months between the AFL Players Association first proposing a deal and the AFL countering with its offer.

The current negotiations are quite interesting, with the two sides wanting several different things. The AFL wants to offer a set amount of money in each of the years of the CBA, with the AFL Players wanting a percentage. While both sides want to see the game grow, the AFL Players feel that their monies should not be used to subsidise expansion, an area where the AFL disagrees. There is a very small chance that this will not be resolved, as the clubs are publicly owned, as opposed to the systems that operate elsewhere.

Paul also gave some tips on how to get in to the industry, and a cross section of the roles of the people he employs.

Next up there was a lecture on Negotiations. This included the legal requirements of preparing an agreement, the necessary elements that needed to be included and how the negotiation process works.

An interesting area that was addressed was the process of conflict resolution. The materials provided by the course thoroughly outline the tools in which can help in effectively resolving disputes. The lecture also briefly noted on grievance and industrial action.

In the afternoon, the audience were treated to a lecture by Stride Sports Management GM and current Sports Agent Alex McDonald. The timing of the talk was particularly current as it was the same day as the AFL Rookie Draft, which Alex had attended that morning. Alex’s insight into the contract process was a fascinating one, with him offering examples and challenges he has faced when negotiating with players and clubs. He highlighted the need for constant contact, and to ensure that both sides are satisfied at all times. If anything was to be taken away from the talk it was that communication and knowledge are key.

The extensive reading materials enable students to complete the required assessments with confidence. The major assignments allow students to be creative, with one including drafting an agreement for a player and their sporting association.

The course takes a break over Christmas, but look out for the next post regarding Media, Marketing and Endorsements.

More on the course can be found at their website.

Course Report: Accelerated Sports Management Program. Part 1. from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

• Is the agent registered to practice as an athlete agent in the state the athlete’s state?
• Has the agent been disbarred, suspended or disciplined by a bar association or players’ association?
• What is the agent’s fee?
• How will the agent prepare the athlete for his professional draft?
• Is the agent getting kickbacks on referrals?
• The agent has a lot of clients; does he have enough time to dedicate to the athlete?
• What will the agent do if things don’t go according to plan?
• What kind of endorsement opportunities might the agent present?
• Will the agent provide any assistance with retirement planning?

Alvin Greer does a great job expounding upon this questions and others that athletes should be asking potential advisors/agents instead of the common question of, “How much money will you throw me up front?”  Check it out and leave your comments below.

Good Questions To Ask A Potential Sports Agent from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Provided such a regulatory mechanism, the NCAA could directly enforce the activity of agents wanting access to athletes; the concept of transparency plays a large part in my recommendation. The idea that those agents who are entirely transparent and work ethically with universities to provide all necessary information in the best interest of the student-athlete, are given the right to develop a relationship, is conceivably a mitigation mechanism for diluting rogue agents and runners.

Despite any effort on the state or federal end in terms of legislation, something must be done at the university level, otherwise players will continue to take money from promoters and rogue business people attempting to gain access to important decisions that should not be under the influence by anyone but the athlete, his family, and a registered advisor.

In fact, why not have a three-tier system, with the NCAA having its own registration process, the respective player associations with their’s as well, and the federal government with its own clearance and oversight process– all for the greater good of the student-athlete. Take a hard look at comparables such as investment professionals, attorneys, accountants, or medical professionals – they all must pass or be acknowledged by several organizations inclusive of a government entity. They adhere to the law or they lose the right to practice their skill-set indefinitely.

The root of the problem is that there are too many shady people involved, coming in at vulnerable points of athletes’ lives (need of money for family, media speculation about upside of pro future, etc..). A long-term decision can affect not only an athlete, but a family or even an entire community for years to come. The best recruiters don’t always make the best agents or advisors.

Representing young adults is a privilege not a right. If someone goes behind your back (i.e. agents not working through university compliance offices – even those who “do,” but then use runners to do the work), wouldn’t you be pissed?

If the NCAA established a mandatory policy in accordance with respective professional players associations and the federal government (do away with individual state athlete agent laws – confusion), then combating all the ridiculous issues such as giving improper benefits (giving money, using company golf cart to transport players, etc…), improper influence by early adoptive leeches (AAU promoters, staff, “friendly’s”), and unsolicited contact by agents would eventually be mitigated.

Visualize it as a three stage water filter with each stage, (I) NCAA registration, (II) Player’s association registration, and (III) a Federal clearing and oversight process, taking what was a murky and shady atmosphere (runners, AAU promoters, lurks, users, etc..) into something pure and potable for a long-term career as a professional athlete without the typical 2 to 3 year learning curve seen so often with athletes switching to agents they actually like and trust (not to mention equipped to serve client in best way). Let’s face it, agents and those around them come into the picture quite early, especially with highly talented athletes.

I imagine some will grumble or argue, why should the NCAA be accountable beyond providing guidance and education or even why should such a “large scale” effort be applied to mitigate such a seemingly ‘small’ problem? Well let’s take a hard look at the industry and each league’s respective collective bargaining issues. It’s all about the dollars, and in the decades to come, billions of them – from salaries to licensing. The collective bargaining talks should indicate where professional sports at-large is heading. If you’re a doctor, an attorney, or even an investment professional, what’s your risk vs. reward? Even more importantly, what if you mess-up? Sport as an industry is becoming a premier opportunity to earn a living and it better be under the same microscope as other professions when it comes to those actually creating that value, the clients.

Follow me on Twitter @wadesenti

Should the NCAA Register Agents? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

This is sure to spark some conversation.  Let’s hear it.

Why Pick A Non-Attorney Agent Over An Attorney-Agent? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

NBA agent Mark Termini recently stated, “This is a business of entrepreneurs and pirates, and an agent decides which one he wants to be, and some (agents) are a little of both.  But if you start making deals and cutting deals and doing side deals (with players, their associates or family members), ultimately you get caught up in a game of where they might get you before you get them.  There are a number of very successful agents who play that game, and the clients they have lost would fill an All-Star game roster.”

I have been in the sports agent business for less than four years, put up my own shingles before ever representing a client at another firm, and started my company before I had even graduated with my Bachelors of Arts degree.  But I am blessed with great clients, and will soon have players on Major League rosters, and hopefully will break into the NBA as a contract advisor in the near future, as well.  Even if I never have a client make it to the MLB or NBA, though, I will still be happy with my foray into the sports agent business, because I will know that I never broke a law, rule, or regulation, never resorted to shady client stealing tactics, and never paid a client or his handlers for the “privilege” to represent him.  I consider an myself to be an entrepreneur more than an agent, and the only time I am a pirate is at a Caribbean themed party.

There is just way too much to lose, including sleep, if I were to stoop to the low levels of some in the sports agent business.  Violating NCAA rules and state laws would not be worth it; I would be jeopardizing my ability to act as an attorney, run this website, and advocate for a level playing field for agents.

Do I have zero chance at being successful?  Termini also is quoted as saying, “I’ve never paid a player or a person associated with a player — period, and I can tell you that my career would be impossible to duplicate in the current environment.”  I will gladly make an attempt at mission impossible.

My Task = Mission Impossible from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

By now, if you’re a regular reader of Sports Agent Blog, you’ve also read Josh Luchs’ piece published by Sports Illustrated Wednesday.

Like Darren, I’m sure, I had no idea Josh’s confessional was coming. Josh had told me at least a couple years ago that he was working on telling the story of his life in the business, that he would name names, and that it would be very provocative. I promised I would interview him when the book came out and give him an audience with my clients, and then never really thought about it again.

Then the texts and emails started coming in early Wednesday afternoon. Within an hour, I was sending out my own texts. “Have you seen it?” “Are you reading this?” “Can you believe this?” I just kept sending them, never identifying what “it” was, but no matter. As soon as I’d push ‘send,’ I’d be getting one back from an incredulous friend or client. I’m sure it was the same for Darren.

My clients at Inside the League are the professionals inside the college and football industry. They are the compliance officials and enforcers from schools in five conferences I have as clients; the marketing experts; the workout specialists; the financial planners; and, yes, the agents who have become my audience over the past 10 years. No doubt, some of them have engaged in similar practices to Luchs. That said, I think there is one thing all of them would agree on: the system is broken.

With that in mind, here are four realizations that need to be made.

Take Luchs’ story seriously. As Luchs himself admits, part of his truth-telling is done to establish credibility regarding his version of the incident that eventually won him an NFLPA suspension. That said, I know Josh, and I also feel it’s part of the maturity that comes with having a family. About five or six years ago, he and I stood on the turf of Ladd-Peebles Stadium after a midweek Senior Bowl practice. Both of us were nearing 40 with young kids, and we talked about the things men think about when they leave their 30s: what our impact would be, both on the world and on the people closest to us. This was pre-suspension, and already, I could tell Josh was doing some soul searching. I truly believe his confessional isn’t self-serving.

The problem is not as bad – - and much worse – than it seems: Obviously, not every player in college football is getting paid. Not even every NFL prospect. However, it seems safe to say that the top 100 college football prospects each year have all been solicited, and a major percentage of them (maybe half?) have taken benefits. What’s more, if you get a map and draw a line from Miami to Washington D.C., then to Dallas and back to Miami, you’ve drawn a triangle around the area where about 70 percent of payments take place. Obviously, most of the players that Luchs mentions are based on the West Coast, but there are probably 10 such stories that could be told by those who regularly recruit the Southeast. I remember once talking to an agent who recruits the Southeast regularly, and he called paying players “the price of admission” for representing student-athletes from that region. I never asked him if he paid that price.

Players need to stop being treated as innocents. To me, here’s the takeaway quote from Luchs’ story: “One of the misconceptions about the agent business is that the kids are victims, preyed on by people like me. When Alabama coach Nick Saban and others rail against the agent business, they don’t mention that most of the time the player or someone from his family approaches us.” It’s far too convenient to think of these players as children who must be protected. Many of these student-athletes have a sense of entitlement and that extends to the agent process.

It’s time to seize the day. There’s a perfect storm brewing right now. In the last three years, we’ve seen agent-related crises at Southern Cal, Alabama (twice), South Carolina and Georgia; the threat of a rookie salary cap that could remove the pot of gold at the end of the rainbow for top picks and, by extension, their agents; the ascent of a new leader of the NFLPA; and now Luchs’ story. For the first time ever, the story behind the story of college football has been dragged out into the light. No school official can say everything’s fine, that the system flushes itself, or that what he doesn’t know won’t hurt his school.

Obviously, I’ve just skimmed the surface here; there’s so much more to say and to do to effect a real change in the business. My hope is that what we’re seeing and hearing right now is the beginning of an era of honesty in the agent-player community. I hope that’s not a naïve conceit.

It’s Time To Seize The Day from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Athletes will continue to ask for money and agents will continue to provide it. If I become one of those agents, I will put myself at risk of jail time, huge fines, but worst of all, I would not be able to live with my actions. Instead, I will use my openness and knowledge of the law, negotiations, and marketing to benefit my clients and seek new clientele. There are also plenty of athletes who understand the value of having a professional work on their behalf instead of someone who is a pro at giving hand-me-outs.

Talking Ethics In Response To SI Article from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Richard Deitsch: Do you have any kind of sense of how you think this story will resonate?  Are people so immune to the idea that college kids are taking money that Josh Luchs will be an interesting story but have no effect?…What’s your sense at least of where this is going to go after this piece comes out?

George Dohrmann: I think, I hope, and I have a sense that maybe some of the states and maybe even the feds will take a look at this and say ‘gosh these agent laws are not being enforced and maybe we need to do something about that’.  You know with a federal statute or something that could create a little more bite so that when agents break the rules they have to pay for it kind of like we see Gary Wichard in North Carolina is under investigation…

I also think it is worth pointing out that Dohrmann is not attacking the sports agent industry.  In fact, he notes that many athletes have their hands out.  It is not agents and others praying on innocent kids.  It is a two-way street.

Will Dohrmann’s Article Lead To Any Change? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

I will start off my dissection of Dohrmann’s piece by focusing on the areas where Luchs talks about the NFL Players Association.  Since this whole “AgentGate” issue became a topic for the masses, there has been a lot of finger pointing towards the NFLPA.

When Josh Luchs became an agent, he was 19-years-old, filled out a few forms, and paid roughly $300.  He was then a licensed NFLPA contract advisor.  Today, he would not be so lucky.  Instead, he would need a post graduate degree, have to pass an examination, and pay an annual fee of $1,200 (until he represents 10+ active players).  On the surface, it would seem that these barriers would curb people like the old Josh Luchs from throwing money at student-athletes, violating NFLPA rules.

Interestingly, since Luchs became licensed, the NFLPA has lowered the maximum commission that an agent can take from negotiating a client’s contract.  It used to be capped at 5%, now it is 3%.  This is no excuse for an agent to violate any rule; however, the big payday comes from the highest draft picks.  3% on a 6th rounder won’t permit you to survive in the business.  Agents might be willing to take the risk to get that 3% max from a 1st rounder, and do “whatever is necessary” to increase the chances of a signing.

It also does not help that the NFLPA no longer penalizes players who are found to have taken money from agents while they were in college.  They used to have to pay that money back to the agents.  For the most part, student-athletes are not only knowledgeable about the rules regarding benefits, but they actively seek out benefits from agents, even though they know it is illegal for the agent to provide anything of value.  This kind of culture does not help reduce the amount of benefits passing hands.  If an athlete knew he had to pay that money back, it may deter his requests a bit.

But here is the line about the NFLPA that sticks out most from the Dohrmann piece:

People think the NFLPA is monitoring agents, but it is mostly powerless.

I have been saying it for a while, but perhaps it is worth repeating.  If you want a real investigation, real discovery, real results, it needs to be done by the states and the federal government.  Even though the NFLPA is a great organization and has done a fine job at representing the players’ interests, it is inherently biased.  Many players and former players have roles within the organization.  Do you think they have or at one time had representation?  Additionally, the NFLPA does not have the resources of a state government.

The NCAA can penalize the schools, the NFLPA can teach an agent a lesson, but the governments have true power.

Confessions About The NFLPA from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Who knows, you might just end up being an NBA General Manager or some other high-level executive within an NBA franchise.  You no longer have to be a former player, scout, or coach to get the high-level NBA job that many people dream of having.

Guys like Rich Cho, Lon Babby, David Kahn, and Jason Levien have changed the game in the NBA executive ranks, and I think the trend of hiring people with legal experience will continue.  And then there is the stat wiz, Daryl Morey, who does not have a legal background, but did graduate from M.I.T. (which has to count for something, right!).  In the future, will we see names like Joel Segal (Hofstra Law School), Tom Condon (Baltimore Law School), Ben Dogra (St. Louis University School of Law), Scott Boras (McGeorge School of Law), David Falk (George Washington University Law School), Arn Tellem (University of Michigan Law School), and Dan Fegan (Yale Law School) enter the mix of candidates for team executive position openings?

Sports Agents With Opportunities In The NBA from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules