Role of A sports Agent

What is an Agent???• Agents understand the legal

concepts behind contracts. Most are attorneys or accountants or both. Attorneys now make up more than 50% of all sports agents that have an active client list.

• Many come from the business sector Agents who do not have a law degree may hire lawyers to review contracts.

• Agents are paid a percentage of the athlete or entertainer’s earnings.

• Agents legally represent athletes and entertainers in contract negotiations

• Typically leagues or players’ associations require agents to be certified in order to represent players.

• They sometimes work for marketing firms

• Agents normally receive between 3 percent and 5 percent of the contract negotiated for the player.

• Some agents charge by the hour for advice, charge a flat fee, or use a combination of payment forms.

What is an Agent Con’t

• They also handle other matters including sponsorships, public relations, and financial planning, just to name a few of the issues.

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• Make sound business decisions

Responsibilities of an Agent

• To carry out these responsibilities, the agent has to stay on top of all business developments in a sport.

• The agent has to be aware of other players’ contracts, team needs, the approach of teams in terms of contracts, and many other developments within a given sport.

• Because of this, agents have to be excellent at communication skills.

Handlers

• Handlers are used to deal with difficult

clients.

• .

Rules and Regulations for Agents There are federal and state laws that regulate agents.

Many states and most leagues require agents to register with the league as an agent.

• A written contract between a student-athlete hoping to enter pro-sports and an agent is required to indicate the fees and percentages to be paid.

Rules and Regulations for Agents Con’t

• Examples:

• All NFL player-contract advisers are fully regulated by the NFL Players Association (NFLPA) and cannot do business with out NFLPA certification and approval.

• Florida requires potential athlete agents to complete an application, pay fees, and pass an examination.

Advantages of Having an Agent

An agent can place the player in contact with trainers.

• An agent can make sure the teams and media are receiving the right message about the player.

• An agent can negotiate complex contracts• Agents are credited for high salaries for their

client • With the aid of an attorney that can speak, read,

and understand legal documents.

Problems with Sport Agents

• Agents contacting or paying student-athletes.• Ex: Former IU cornerback and current NFL free agent Ray Fisher said he

was offered money from an agent while he played for the Hoosiers. • The first drawback to having a sports agent is that they make money by

taking a cut of the money you earn. Additionally, there are a lot of agents on the market; with whom you sign a contract can have significant effects on your career. If you pick a bad agent, you could find yourself on worse teams with worse deals than you feel your skill deserves.

Contract Negotiations• Free agency allows

players to explore options of moving to another team with little or no financial penalty. – Higher player/personnel

costs result from bidding wars for certain players.

• Salary caps limit the amount a team may spend on contracts.– Less profitable teams are

protected from continual losses.

– A luxury tax is paid by teams that exceed the salary cap in the NBA and is split between less profitable teams.

Downside for the Player

• Issues, such as salary negotiations, networking and self-promotion all take away time you could have spent in the gym or on the field to stay sharp or improve your skills. If you spend too much time managing your career, you may end up as a less than desirable athlete.

Read more: http://www.ehow.com/info_8028910_pros-cons-sports-agent.html#ixzz2rFQj9DV1

Effects for the Player

• If an amateur athlete signs with a sports agent that athlete loses amateur status. If the athlete is part of the NCAA, the athlete loses eligibility to play for any college in that sport.

• NCAA sanctions can be put on schools that allow a player that has signed with or accepted gifts from an agent. Those sanctions could include probation, loss of scholarships, and being ineligible for bowl games or playoff appearance.

A Day in the Life - Sports AgentVideos

• http://www.youtube.com/watch?v=qxNpnXYngLg&feature=related

How to Have a Career as a Sports Agent

• Agents annually make anywhere from $50,000 up to $1-million or more. Only 5% make more than $100,000 per year.

• http://www.youtube.com/watch?v=rTbT5zHGors&feature=fvwrel

The End

• Any Questions?