Is the agent or agency that’s recruiting you registered to practice as an agent or agency in your state?
For the NFL, sports agent firms must be registered with the National Football League Player’s Association (NFLPA) to negotiate a contract for a player. The Uniform Athlete Agents Act, or the UAAA, is a state law currently recognized by 40 States (as of April 2011), in addition to Washington D.C. and the U.S. Virgin Islands, that regulates the recruiting actions of agents.
The Act’s purpose is to create uniformity in the way sports agent firms go about recruiting and communicating with prospective clients. Part of the Act requires that sports agents register in each state in which they choose to recruit athletes in.
If you’re in a state where the UAAA isn’t recognized, ask them if they’re registered in that particular state (if applicable). If you’re already a professional athlete, the prospective agent(s) don’t have to register with your state.
Have you ever been disbarred, suspended or disciplined as an attorney or agent?
While bad things do happen to good people at times, it’s good to know whether or not the sports agent firm you’re considering has ever been disciplined, suspended or disbarred (in the event that they’re also an attorney). Research the attorney or agent, and feel free to bring-up what you’ve learned. There may be a good explanation of what happened, but it’s important that you’re comfortable with them and their track record.
What is your fee? Is your fee negotiable? How and when do you bill me for your services?
Do you provide any type of annual statement to your clients?
Sports agent firms normally bill on a percentage of the value of the contract they negotiate on the players behalf. Quite often this fee is capped. For example, in the NFL (National Football League) and the UFL (United Football League), these fees are capped at 3%, meaning the agents’s commissions cannot exceed 3% of the total value of the contract negotiated.
Even so, you can ask to pay the agent on an hourly rate, if it’s agreed upon. It’s been said that Ray Allen, now of the Boston Celtics (NBA), saved himself over $2.8m by paying Johnny Cochran $500 an hour instead of paying a 4% commission back in 1999 when he was negotiating his own contract with the Milwaukee Bucks.
As far as athletic training, who do you work with? Who have they prepared for the Combine in the past? Who pays for my training?
Nowadays, sports agent firms commonly foot the bill for combine and pro day preparation training for sure-fire draft picks. Some athletes choose to stay at school and train for agen bola resmi events, while others prefer to go to a remote location to train.
It’s important to make sure that you and your prospective representatives have a clear understanding regarding where you’re training, who’s training you, and how much it will cost, as well as if any of the related fees are your own financial responsibility.
Your career’s at stake, so it’s vital that you research the experience and track record of the entity where you’ll be training.
What type of financial services do you provide? Do you receive any referral fees from the financial advisor you recommend? Can I use my own financial planner or accountant?
Sports agent firms sometimes receive kickbacks or commissions for referring clients to specific financial advisors. This practice obviously should raise concern regarding whether or not the agency is referring that financial advisor because of their performance and quality of services.
Ask if they recommend a financial advisor. If they do, investigate the backgrounds of them. If you discover any red flags, bring up your concerns with the agency or agent to see what they say. Sports agent firms that recommend financial advisors with questionable backgrounds shouldn’t necessarily be disqualified from consideration, as they are (or should be) two separate entities. It’s also possible that they either didn’t know about the infractions themselves, or that there’s a good explanation behind what you found, unless it’s criminal activity.
When interviewing prospective financial advisors, find out their take on you employing risk managers to assess the level of risk involved with their recommended investments. If your best interest is their true concern, they shouldn’t have an issue with you having a third party look over their recommendations. Financial advisers that represent NFL players must register with the NFLPA just like agents.