Ch 11. Sports Agency

Question 1

What is sports agency?

Answer 1

a relationship between a principal and an agent

Question 2

Are agents unique to sports?

Answer 2

nope

Question 3

How are sport agents regulated?

Answer 3

through an area of common law known as Agency law

Question 4

What is agency law?

Answer 4

dictates the fiduciary (acting in the best interest of the other party) duties of both the principal and the agent

Question 5

Through agency law, what is the definition of agency?

Answer 5

describes a relationship in which one party, the agent, agrees to act for and under the direction of another, the principal

Question 6

What is the purpose of agency law?

Answer 6

establish duties that principals and agents owe each other

Question 7

Agency law is an important component to what?

Answer 7

the player representation industry

Question 8

What are the duties of the agent?

Answer 8

obey, remain loyal, exercise reasonable care, notify, and account (for finances and information)

Question 9

What are the duties of the principal?

Answer 9

• compensate the agent for their service
• reimburse the agent for any expenses incurred while acting on the principal’s behalf
• comply with a contract if one exists

Question 10

Who was the first sport agent and who did they work with?

Answer 10

C.C. “Cash & Carry” Pyle who worked with Red Grange in the 1920s

Question 11

When did sport agents start becoming popular?

Answer 11

the 1960s when Mark H. McCormack worked with Arnold Palmer

Question 12

What did Mark H. McCormack figure out about Arnold Palmer?

Answer 12

he can make a lot more more off endorsements than playing in professional games

Question 13

What was extremely rare before the 1970s?

Answer 13

pro team sport athletes to have an agent

Question 14

Why was it difficult for athletes to have an agent?

Answer 14

teams would refuse to deal with agents and there was no free will until 1976 (no leverage to negotiate)

Question 15

What was created in the late 1990s?

Answer 15

uberagencies

Question 16

a few bullet points on the slides that I do not understand

Question 17

What were two of the largest firms in the 2000s?

Answer 17

CAA and Wasserman who brought out smaller firms and created a monopoly

Question 18

slides about the 5 factors

Question 19

What are some of the functions of a sport agent?

Answer 19

• recruiting clients
• financial planning
• dispute resolution
• post-career planning
• marketing the client
• administering client contracts

Question 20

What are the three models of a sport agencies?

Answer 20

1. freestanding sport management firm
2. law practice-only firm
3. sport management firm affiliated with a law firm

Question 21

What is a freestanding sport management firm?

Answer 21

a full-service firm providing a wide range of services to the athlete/client

Question 22

What is a law practice-only firm?

Answer 22

lawyer performs many legal tasks (contract negotiation, arbitration, legal counseling, dispute resolution, and the preparation of tax forms)

Question 23

What is a sport management firm affiliated with a law firm?

Answer 23

each fills a void by providing the services the other does not offer

Question 24

What are small firms?

Answer 24

representing athletes in one sport and focusing on one or two services for the athletes or coaches

Question 25

What are large firms?

Answer 25

an agent that is part of an international conglomerate representing many athletes in a broad range of sports

Question 26

What are the advantages of a small firm?

Answer 26

athletes receive increased attention and are actually represented by the person they original signed a contract with

Question 27

What are the disadvantages of a small firm?

Answer 27

a solo agent cannot offer as many services as a large firm

Question 28

What are the advantages of a large firm?

Answer 28

better reputation, increased bargaining position, and other star players

Question 29

What are the disadvantages of a large firm?

Answer 29

a large stable of clients and the athlete may feel like a "small fish in a big pond"

Question 30

When a conflict of interest is present, can an agent continue to represent a principal?

Answer 30

YES, the agent has to disclose the conflict of interest to the principal and gives the principal the option to work with a neutral party in place of the agent

Question 31

What are some duties of marketing an athlete?

Answer 31

- assess current image - develop plan and polish client - select endorsement opportunities - understand that career could be short-lived (market deals more important) - be familiar with marketing opportunities restrictions

Question 32

What is financial planning?

Answer 32

covers banking and cash flow management, tax planning, investment advising, estate planning, and risk management

Question 33

What do sport agents often do in financial planning?

Answer 33

attempt to take on this function without proper skills and training

Question 34

What can happen with improper financial planning?

Answer 34

can lead to allegations of incompetence and negligence

Question 35

What protects athletes from career-ending injuries?

Answer 35

disability insurance

Question 36

What are the requirements to become a sport agent?

Answer 36

no federal established education standards or degree requirements necessary to become a sport agent

Question 37

How many registered agents are there in the NFL?

Answer 37

830 (75% of players are represented by 17% of the agents)

Question 38

Professional degree is not always required to become a sport agent....

Answer 38

but expected/mandated by the players association

Question 39

What are the key skills required to become a sport agent?

Answer 39

knowing the industry sector - contracts, policies, rules and regulations, constitutions, and collective bargaining - negotiations - managing client with media

Question 40

CONTRACT NEGOTIATION

Question 41

What is a contract?

Answer 41

a written or verbal agreement between two or more parties that creates a legal obligation to fulfill the promises made by the agreement

Question 42

What are the requirements for a valid contract?

Answer 42

- mutual assent (offer and acceptance) - consideration (both parties offer something valuable) - capacity (over 18) - legality (subject must be legal)

Question 43

What is a break in a contract?

Answer 43

the contract "promise" is broken

Question 44

Can breaches happen for full or partial parts of a contract?

Answer 44

it can happen for BOTH

Question 45

What is the remedy for a breached contract?

Answer 45

money but can also be an injunction

Question 46

What does the public believe about the agent profession?

Answer 46

there is much criticism that it is excessively unethical

Question 48

What is one current issue about agent clients?

Answer 48

the clients are becoming younger and signing as a minor and NIL rules

Question 49

What are five key problems in the agent profession?

Answer 49

- income mismanagement - incompetence - conflicts of interest - charging of excessive fees - overly aggressive client recruitment

Question 50

What is true about agent regulation today?

Answer 50

they must maneuver through a maze of conduct-governing regulations

Question 51

What regulates agents?

Answer 51

organizational policies and by-laws

Question 52

What are the different organizational policies and by-laws?

Answer 52

- players' associations - state legislation (43 states have regulations) - federal government (SPARTA of 2004) - NCAA

Question 53

How can athletes seek recourse (source of help in a difficult situation)?

Answer 53

under tort, criminal, agency, and consumer protection laws