Regulating the Athlete-Agent Industry: Intended and Unintended Consequences
35 Pages Posted: 5 May 2006
Date Written: May 2006
Abstract
Concerns involving sports agents tend to fall within two broad categories - issues involving professional competence and ethics on the one hand, and issues involving overzealous competition for clients and recruiting improprieties on the other. Salient illustrations of agent malfeasance and ethical compromises include income mismanagement, missing deadlines in player contracts, and engaging in conduct that conflicts with the interests of their athlete clients. Factors that contribute to the intense competition that breeds conflict amongst agents include the significant fees that are potentially available if an agent signs an athletes, the increase in the number of agents between the 1960s and 1990s, and the relatively stable pool of potential athlete-clients. Competition for clients manifests in client stealing, agents disparaging the reputations of other agents, and improper recruitment tactics by agents such as giving financial inducements to athletes to sign representation agreements. The harm inflicted upon athletes as a result of such conduct underscores the need for effective means of regulating the athlete-agent industry.
After detailing illustrations of agent misconduct and the consequences thereof, the article examines indirect means used to regulate and hold athlete agents accountable such as civil and criminal lawsuits, ethical and professional standards governing attorneys, and NCAA rules and regulations. It also critically analyzes direct regulatory mechanisms, including state and federal legislation, and player association regulations. Arguing that past efforts have been largely unsuccessful in effectively regulating the athlete-agent industry, the article proposes a multi-layered regulatory approach. In this regard, the article concludes that recent changes to the National Football Players Association's agent regulatory system when combined with state and federal legislation, and common law concepts hold promise for ameliorating problems in the athlete-agent industry.
Keywords: Sports Law, Contracts, Regulated Industries, Legal Profession
JEL Classification: K12, K23
Suggested Citation: Suggested Citation