Speaker: Katie8/26/14 1:11 PMCHAPTER 1
Sports Agents*Who is a sports agent?Advocate, marketer, and negotiatorNot just for athletes, anyone in sports context
*QualificationsLaw Degree? Not necessarily but better sometimes hinders themDictated by Big Four says who can represent the players and the coaches in their league
Agency Law*Principal Agent RelationshipContractor-independent contractor v. employer-employeeAre you telling them how/when? V. Dictating how and when but they do it.Typically contractor-independent contractor with sports agent
*TypesExpress Agency- you are my agent and I will set forth what I want in writing up a contract.Implied Agency- appears that people are acting on behalf of others. Ex: boosters
*LiabilityVicarious Liability- whatever the agent does the represented will be liable for what has been agreed upon.
Fully Disclosed- party knows that the person is a representative of a specific person.Partially Disclosed-Agent is responsible until disclosedUndisclosed Agency- Agent will be bound to contract
Agency History and Business *HistoryRed Grange (1925)Flourish in 1960s-Billy Cannon, Vince Lombardi Mergers in 1990s- allowed them to specialize in sports and types of playersEgregious actions-
*BusinessBig Four CertificationsNon-Big Four Sports- must really know the niche market. Ex. Olympic games, tennis, golf, etc.Exclusivity- required to sign and that they will be your only agent and they can negotiate on your behalf. This is for monetary reasons.
Agent Roles *Fiduciary Duties- Duty of good faith (taking correct percentages), loyalty, accounting (correctly managing their money), and care.
*Conflicts of Interest- dual presentations (multiple players with same position), players and coaches (coach gets bonus with specific players) * Facilitators- act on behalf of the event not necessarily a player over another.
Sports Agent Regulation *Uniform Athlete Agents Act (UAAA)- model state regulation, 40 states D.C. and Virgin Islands, 3 states have non-USAAA laws. 10 states have not adopted it. *Criticism- motivation behind enforcement-protect student athletes or colleges and universities from NCAA penalties. Only applies to student athletes with remaining eligibility, does not apply to professional athletes, and those who do not play college sports.
Sports Agent Regulation*Sports Agent Responsibility Trust Act (SPARTA)- Protects against misleading advertising in recruiting student-athlete. Enforced by Federal Trade Commission. 2004-2011 no known violations.
* Players Associations CertificationsNFL- Four-year degree, 2-day negotiation seminar and written exam, application and background check and dues. Negotiate one contract within 3 years. Agent gets 3 percent commission. MLB- Represent one man on a 40-man roster before certification, minor league-patience and you represent them during minor and then you certified after they make it to major league. Commission based on what percentage you get over the minimum then 3%. NBA- 4-year college degree or sufficient negotiating experience, application. Get paid only if over minimum salary. NHL- application and only paid if over minimum salary.
Sports Agent Fees*Regulated by Players Associations NFL- 3%MLB- negotiate only % over minimum NBA- not capped but more than minimum salary NHL- not capped but more than minimum salary
*Salary fees v. endorsement fees- Salary 2-4% and endorsement is between 10-20%, coaches negotiate between themselves and agents
Agent Violations*Violations-Josh Luchs*Criminal Cases- Walters and Bloom (backdated contracts), FSU and Footlocker (agent paid for shopping spree and wasnt registered so paid huge fines), Tank Black (pyramid scheme and stock swindling)*Civil Cases- Leigh Steinberg v. David Dunn
NATIONAL COLLEGIATE ATHLETIC ASSOCIATION- voluntary organization*1200 voluntary member*Over 400K Student athletes*3 divisions (I, II, III)*1281 member institute*23 sports*88 national championships- 41 mens, 44 womens, 3 coed*400 full-time employees at national offices
Speakers:Blair and Jason in compliance, manager for track and field then graduated and got job, deal with eligibility and problems, academic eligibility and by laws, deal with all facets of the university (training room, admission, res life, parking, etc.) Jason- was going to be agent, went to law school and then took an internship for compliance, Texas State, LSU for 5 years, Broadcast journalism undergrad, lead person for interpretation, file violations, deals with pre acceptance and advisors, Legislature Database used for rule look up and exceptions. Fruit basket and major infractions searches, and find ways to do things impermissible. The members in the schools make the rules themselves, not the NCAA, mostly presidents at the universities.
Q&AStudent Athlete and lawyer representing them does it affect eligibility- as long as they pay for it then it is okay and sometimes pro bono work is accepted. Jefferson had it when at LSU but attorney must have acted pro bono before.
Baseball agent and NCAA athlete- are not actually paid yet so it is accepted.
Must have same market value as far as pay.
Spring Semester must pass with 6 hours to be eligible to play in basketball.
One and done rule- Jason does not like it because it creates bringing in a kid and having him play and not valuing the college education but if wanting to go pro then should be able to go ASAP but some coaches will accept it. Johnny thought he would go pro after one year but actually took 3 years.
The big 5 conferences have the ability to make their own rules. $2000 stipend to kids to make up the difference for tuition and the big 5 could afford it so they would be likely to say yes.
Basketball, Football fully funded
11.7 scholarships for a 35 roster sport so they spread it out
Will title 9 ever change? Does not think it will.
Student athletes and tweets is not acceptable
Restrictions before on what could be sent to a recruit, now as long as it is not larger than sheet of paper its fair game
Eliminate what rule? Her-monitor texting Him-prospects on the road
Can not use a student athletes likeness or name to make a profit: Boganation
Liaison between NCAA and institution
Coaches are not allowed monitor voluntary workouts
200,000 per student athlete
moonwalker- Tre Quinn not an issue until the hand sign he promoted during the game
Thankless job is only complaint
Division I-A (Football Bowl Series)*16 sports- male/mixed v. female*Home football games and opponents (neutral sites)*Attendance requirements- 3 year enrolling*129 schools*if do not have football then can not vote on football related issues- Marquette, Xavier, Pepperdine
Division I-AA (Football Championship Subdivision)*14 Sports male/mixed v. female*118
Division II*male/mixed v. female teams
Division III*Males/mixed female teams*Athletes receive no financial aid
Ivy League*No athletic scholarships
Mission*Bylaw 1.3.1- to maintain intercollegiate athletics as an integral part of the education program and the athlete as an integral part of the student body, and, by so doing, retain a clear line f demarcation between athletics and professional sports. *Manual- comprehensive statement of principles, policies, and riles for NCAA memberships. Changes significantly every year.
Scholarships*One year- NCAA Scholarships- renewable on annual basis, full and partial depends on sport, unlikely to lose because of performance in sport *Five Year/Ten Semester Rule- redshirt, medical hardship or injury
Revenue*NCAA Revenue Sources-March Madness (Big Money Maker) and BCS Sponsorships and Licensing Tickets and Concessions*Revenue v. Non-Revenue Sports- Basketball, Football, Hockey- LSU*BCS Automatic Qualifiers v. Non-Automatic Qualifiers99 out of 120 had to get subsidies to make program operate profitably.*LSU Athletic Program gives 1.5 Million every year to school
Violations and Enforcement*Violations *Major v. Secondary changed to category violations *Letter of Inquiry and Notice of Allegations*Committee on Infractions (takes investigations and then tells what it thinks you should do) /Infractions Appeal Committee (if you do not agree with that they did then you go to appeal) *Enforcement- not state actors *NCAA Punishment- vacate wins, reduce scholarships, post-season play, ad TV appearances- mostly major class I violations*Self-Imposed Penalties* Should the have punished Penn State? What rule did the break Was It too harsh? Yes the fines hurt all the sports*Penn State has not one single NCAA infraction against them prior to incident
Non-Compliance*Monitoring- identifying and reporting violations, cooperating with NCAA and taking corrective action. Monitor coaches, players, and boosters*Show Cause Orders- Why it should not be subject to a penalty for not taking appropriate action
Amateurism*Core principal of NCAA- maintain intercollegiate athletics as an integral part of the education program and the athlete as an integral part of the student body.*Prohibits student-athletes from using his athletic skills for pay in any formOhio State football playersCost of Attendance
NCAA and Sports Agents*Prohibits student-athletes from having sports agentsIneligible if agree orally or in writing to be represented: sport specific*Professional Sports Counseling Panels- Guidance n contracts and agreements with agents: draft prospects. Is this conflict of interest? They are paid by the institution so it could be in the best interest to get them back another year.
No Agent Rule*Oliver v. NCAA-