Anyway, Republicans in Florida planned on de-regulating multiple professions in order to spur job creation.  My alma mater, the University of Florida, was instrumental in taking the athlete agent profession out of that proposal.  In particular, University of Florida athletic director Jeremy Foley called Florida’s Senate Budget Chairman to encourage the removal of sports agents from the de-regulation package.  The Chairman says that he had already decided to oppose the inclusion of sports agents in the deal.

Want to do business as a sports agent in Florida?  Sorry, but you still must pay the fee and get licensed in the Sunshine State.

Florida Almost De-Regulates Sports Agent Profession from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Nate Haber of PlayersRep Sports Management tweeted: “With the decertification of the NFLPA, now anyone can represent players if/when lockout ends. Biz just went from dirty to sewage.”

Blake Baratz of The Institute for Athletes commented: “Union decertifies. Unbelievable. Consider my business the wild wild west. Now I just need a horse and a holster!”

Brian Ayrault of Ayrault Sports Agency jokingly wrote: “No agent regulations….Rosenhaus signed 74 new clients in the last 56 minutes”

The concern for many agents is certainly justifiable.  Even with a players association in place, players frequently changed agents, which has been documented in part through our On To The Next One column.  Without the NFLPA, some agents may think that they have a “Get of of Jail Free Card” and will be able to poach competitors’ clients.  The new trade association cannot do anything about it, but agents who lose their clients to unscrupulous competitors may have a legal action in tort.

As discussed at length in the past, an agent who has a legal contract with his client, which is terminated based on the client’s recruitment by a rival agent who knew of the former contractual relationship, may have a solid claim of interference with contractual relations.  It is probably in a football agent’s best interest to have his clients sign representation contracts immediately if the relationship has been solidified only through a Uniform Player Contract formerly filed with the NFLPA.

Want to see what a Count for interference with contractual relations looks like within a Complaint?  Check out Count II of the Complaint filed by Tennessee Football, Inc. in a matter against Lane Kiffin, embedded at the bottom of the post.  And it can certainly be applied to the agent profession.  In September 2010, an arbitrator ruled that Andy Miller must pay Keith Glass $40,000 in damages for technically stealing a client.

Following decertification, I Tweeted, “Football agents: Client stealing still illegal. Tortuous interference w/contractual relations. I’ll happily rep you in court vs. scumbags.”  I stand by that statement.

Make sure to follow football agents along with many other athlete agents on the Master Twitter list of sports agents/agencies.

Football Agents Fighting It Out In The Wild Wild West? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

I applaud the state legislators like Rep. David J. Sanders in Arkansas and those in the state of Oregon who care enough about the problem of inducements offered to student-athletes by sports agents, to propose changes within their states.  However, I think that these individuals have mostly missed the boat, which could end up harming true worthwhile reforms.  In a vast majority of states, athlete agent laws already exist.  In the states where they do not yet exist, legislators need to propose legislation based on the Uniform Athlete Agent Act (UAAA).  But if states with existing athlete agent statutes think that new legislation with harsher punishments for violators will serve as a noble deterrent to unscrupulous agents who will do almost anything to gain an edge over the competition for highly touted rookie players, they are certainly mistaken.  A deterrent is a state putting a sports agent in jail for ignoring its existing laws (see: Alabama).  A non-deterrent is beefing up an existing statute while failing to do something about a top tight end who had to sit out his senior season in 2010 (see: South Carolina).

South Carolina Sen. Joel Lourie is another legislator who really has fantastic intentions with regards to the protection of student-athletes and institutions of higher education within his state.  However, he has fallen into the same trap as many other congressmen throughout the country.  He believes that tougher athlete agent laws in his state will help regulate illegal contact between athletes and agents.  But most states already have the tools to regulate the illegal conduct under consideration.  Why wait?  Why not enforce the laws currently on the books?

Let it be known that I have nothing against the new legislation making its way through state legislatures.  However, the mere suggestion that the passing of new legislation will serve as some deterrent is a complete joke.  The only way agents will be deterred from ignoring laws is to actually enforce them.  Regulation is controlling through rules and regulations, not creating additional rules and regulations.

States Focused On New Athlete Agent Legislation, Not True Regulation from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

The bill proposes to completely change the definition of “athlete agent” within Arkansas.  All you have to do to be considered an athlete agent is to either 1) have a student-athlete authorize you to enter into an agreement, 2) work on behalf of another agent (runners, recruiters, service providers, etc), or 3) represent to the public that you are an athlete agent.  Additionally, family members who offer or solicit on their own behalf or the student-athlete’s behalf any sort of financial benefit or gift not allowed by the NCAA will be considered athlete agents under the Act.

Furthermore, the Act demands that athlete agents notify a school’s athletic director prior to contacting an athlete at that school.  However, the Act also gives a 72-hour window to inform the athletic director after the contact is made.

Agents who provide a financial benefit or gift to a student-athlete may go to jail for up to 6 years and/or be fined $250,o00, if the Act becomes law.

Arkansas Attorney General Dustin McDaniel has stated that the legislation “does, in fact, put skin in the game for those who are engaging in wrongful conduct.”  He went on to say, “I do not think that under the current law there’s enough deterrence to effectively reach the decision-making process of somebody who may be in Miami driving a Ferrari and reaching out to young athletes all over the United States.”

Rep. John Walker, a Democrat from Little Rock, Arkansas is not so sure about this Act’s effectiveness, though.  He is quoted as saying, ”Perhaps this would be better to be a national law rather than a local law because you can talk about the agent, but you can’t bring that person within the state unless he has some significant direct contact with the student in the state.”  This is just one of many reasons why the Act fits better as national legislation.  But it is a step in the right direction for states like Arkansas to take sports agent illegality serious.  However, deterrence will come through enforcement, not mere words.

The Athlete Agent Reform Act Of 2011 In Arkansas from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

It’s a business; we all get it (hopefully). However, what I think has been lost in the entire process from client acquisition to post-career advisement is the actual value of a great advisor or agent. I have heard so many twenty-something’s state that they want to become a “sports agent,” but do they actually realize what an agent does or even more importantly why they exist?

Congratulations! You have acquired your first client, now what? Exactly, you have no idea what to do now, just that you expect dollars from the contract, a possible marketing deal, or other opportunities, yet you have no idea or understanding of how to navigate these treacherous waters.

I am very critical about this, because so many people believe that it’s essentially a one night stand, draft day comes, the contract is signed, and its Entourage from there on out. The fact is, it couldn’t be further from the truth. I have heard former prominent agents tell me “for every one day of glamour, it was fifty days of hell,” so why so much hustle and bustle at the starting line for this career?

Further, it has almost become sickening to hear all of the dilemmas and anecdotes from sports professionals like Dave Telep (High school sports haunted by pay-play scandals), current players (Washington Post article), and former agents (including Josh Luchs). While these articles portray agents as the problem, it is my belief that it is more so runners, who for one reason or another see the opportunity to benefit from the likeliness of another’s success or the chance of becoming an agent themselves. To me, it is the lowest form of human and business interaction to date.

The Client

At the end of the day, if you aren’t transparent, and more importantly honest, with your current and future clients, then you are in fact a parasite to sports. In the coming years, I predict that university compliance departments will take on an even greater role with regard to not only reacting to issues, but also predicting and preventing them, through advisory and legal panels to actual employees navigating the new world of social media as well as attending to student-athlete concerns confidentially. How it could or would be done is beyond me, but what I do know is that working in the shadows is never the way to go; shady people should not be advising young men and women.

The Economic System to Prevent It

My colleagues and I discuss these issues all the time, but what it always seems to come down to is a policy issue (ethics aside) – where is the economic incentive to follow the rules? The answer is, there is none. However, even with state athlete-agent laws in place, enforcement is typically low. Some suggest federal legislation on this matter, but the economics must make sense. Either the penalty is so extreme a violator cannot afford to get in trouble, or some other type of program must be put in place.

One of my theories is that the NCAA, but more importantly university athletic associations, need to institute whistle-blower programs, because even from what I have heard as well as from personal run-ins, many of these ‘crimes’ occur within reach of the university community. It could be that cute, yet smart, girl on campus or the shady dude driving the rather overly luxurious car in a college town. In fact, it would even be in the booster program’s best interest to support such an effort due to possible sanctions for an entire athletic program. Even with such a policy or program, flaws may exist, but at some point all this nonsense must stop at the “honor code.”

Similar programs have been established within the SEC and the IRS for mitigating fraud among market participants and citizens. Even with these programs, criminal activity exists, but nonetheless is marginally deterred. The simple aspect of knowing someone could report you at their gain is enough to deter violations, especially if doing so requires a given level of evidence or proof. Perhaps I am way off or maybe I am right on, but as professional athlete salaries and endorsements continue to rise to astronomical levels, issues like these are becoming more aligned with the telltale stories of Wall Street greed and discreet tax avoidance schemes portrayed in mainstream media.

The Industry

Let’s face it, anyone, I mean anyone, can start a sports agency or marketing company. A state filing and a website and it’s done. The reality is that for every potential client, there are about twenty agents and then runners in multiples of that (mathematical example – likely much, much higher), which are pursuing the same exact objective. How do you differentiate yourself as a young person? I believe that delivering on your claims and promises is critical, whether it’s a client looking at the ABA for basketball or a minor league baseball team in the Midwest – word of mouth is the single most effective marketing tool, and it goes both ways. With that said, don’t say something you can’t do. It is my belief that to truly represent the athlete you must also represent the sport and the integrity of those within it.

Yo Runner, Get Out of my Face! from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

McDaniel said his legislative package for the upcoming legislative session would include a bill with stricter punishment for a sports agent, an athlete’s relative or another third party who negotiates benefits in exchange for an athlete attending a university. The attorney general cited the activities of Auburn quarterback Cam Newton’s father in seeking $180,000 from Mississippi State if he could steer his son to sign with that school.

“The student athlete’s career can be severely damaged if not destroyed when it comes to light, if the incident is severe enough the school can suffer … but the agent bears little real risk,” McDaniel said.

McDaniel wants to punish anyone acting as an intermediary in such cases by making it a felony punishable by a fine up to $10,000 and as much as six years in prison.

McDaniel said he hopes University of Arkansas Athletic Director Jeff Long will help present the bill.

The NCAA has absolutely no power over a third party who negotiates benefits in exchange for a student-athlete’s commitment to attend a university.  The NCAA may penalize the student-athlete by limiting his participation in athletic events and the athlete’s school could suffer great ramifications, but the third party gets off unscathed.  That is, unless a state like Arkansas has a law on the books that could send the third party to jail for 6-years.  The $10,000 fine pales in comparison to the $180,000 figure that Cam Newton’s father was seeking, and might not be enough of a deterrent.  6-years in behind bars – that’s a scary thought.

Arkansas Attorney General Wants To Clamp Down On Agents And Intermediaries from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Football

• Not exactly the $40 million in guaranteed money that was originally flaunted [Donovan McNabb's guaranteed money: $3.5 million].
• The “godfather of agent misbehavior” [Norby Walters doesn't regret role in college football scandal].
• Because UNC has not yet suffered enough [NCAA says two Heels cannot play].
• Fingers crossed that the NFLPA doesn’t adopt the NBPA’s rule that an agent can’t represent both a player and coach? [Jimmy Sexton, Pat Dye merge firms]

Baseball

• Already brokered $57.25MM worth of contracts since the start of free agency [ACES Agency Off To A Great Start].

Basketball

• Such an awesome resource [HoopsHype - NBA Sneakers].

Skiing

• Highlights an agency named Allegiance Sports Group [Yes, skiers have agents].

Sports Agents

• The list begins with Bill Strickland and ends with Larry Reynolds [11 Black Sports Agents Transforming Players into SuperStars].

Shabbat Shalom: Friday Wrap-Up (11/19/2010) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Football

• Final cuts are never really the final cuts [Guys who made the cut shouldn't uncork the champagne yet].
• It’s a big win for Revis. The Jets make decisions differently than the Raiders! [Darrelle Revis Didn’t Get the Nnamdi Asomugha Money He Wanted, So Why’d He Sign with the Jets?]
• Note that the 85% rule is only applicable in an uncapped year [Sources: NFLPA monitoring trades].
• Joe Haden and Gerald McCoy find themselves in good situations [Under The Cap: Top 10 Draft Picks].
• Continuing to dig into the Blake/Wichard relationship [Former UNC coach had agent on speed dial].

Basketball

• For anyone who scoffs at starting out as an intern [Grant has tough task ahead of him].
• Read the thoughts from the anonymous agent at the bottom of the post [The NBA and Weight Clauses: Derrick Caracter joins Glen "Big Baby" Davis as Weighted Players].

Sports Law

• More attention to be paid by both sides in negotiations [The Impact of Tiger Woods Scandal on Morals Clauses in Endorsement Contracts].

Sports Business

• Chris Dingman answers some questions about his niche athlete real estate business [How Do Pro Athletes Handle Their Real Estate Needs?].

Shabbat Shalom: Friday Wrap-Up (9/10/2010) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Sports Business

• Big power move for Wasserman [Brody leaving MLB to head sales at WMG].

Baseball

• The Dominican Republic has an education problem, a cheating/PED problem, and many other issues to deal with…but at least some teams are enhancing their D.R. facilities  [Struck Out by Béisbol].

Basketball

• Perhaps an unfair advantage for LRMR [LeBron James' basketball camps push the line in regard to recruiting amateurs for sports agency].
• At least now we know that William Wesley carries a BlackBerry [Agency Role Could Limit Basketball Broker’s Power].
• Athletes, wake up! Learn how to use social networking sites to your benefit not your detriment [“ALCOHOL ON US” – 20-Year-Old Cashmere Wright].

Sports Agents

• Paul Doyle is a track & field agent [Marietta sports agent, wife walk away from plane crash].
• Drew Rosenhaus owns Southwest Florida [Agent knows the area well].
• This is really what makes Arn Tellem one of the best in the biz [Nomar, Mia visit Seeds of Peace: 'You see the joy'].

Shabbat Shalom: Friday Wrap-Up (8/6/2010) 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