POLICY ON AGENTS & ADVISORS
TEXAS STATE UNIVERSITY Athletics Compliance Manual
AGENTS & ADVISORS Section I:
NCAA Rules General Rule Representation for Future Negotiations Benefits from Prospective Agents Legal Counsel Amateur Status Professional Draft & Tryouts
Section II:
Policy & Procedures General Policy & Procedures Contact with Student-Athletes Student-Athlete/Agent Interviews Violations of NCAA Rules and/or Texas Athlete-Agent Act
Section III: Texas Athlete Agent Act Agent Eligibility Standards for Football Agent Eligibility Standards for Men’s & Women’s Basketball Agent Eligibility Standards for Other Sports Section IV: Resources
TEXAS STATE UNIVERSITY Athletics Compliance Manual
CHAPTER 15: AGENTS & ADVISORS SECTION I: NCAA RULES This section does not include a comprehensive list of NCAA rules and interpretations related to agents and amateurism. Therefore, it should not be used as a substitute for the NCAA Manual.
A.
GENERAL RULE AND DEFINITIONS Per NCAA Bylaw 12.3.1, an individual shall be ineligible for participation in intercollegiate athletics if he or she ever has agreed (orally or in writing) to be represented by an agent for the purpose of marketing his or her athletics ability or reputation in that sport. Further, an agency contract not specifically limited in writing to a sport or particular sports shall be deemed applicable to all sports, and the individual shall be ineligible to participate in any sport. An agent is an individual who, directly or indirectly (a) represents or attempts to represent an individual for the purpose of marketing his or her athletics ability or reputation for financial gain; or (b) seeks to obtain any type of financial gain or benefit from securing a prospective student-athlete’s enrollment at an educational institution or from a student-athlete’s potential earnings as a professional athlete. An agent may include, but is not limited to, a certified contract advisor, financial advisor, marketing representative, brand manager or anyone who is employed or associated with such persons.
B.
REPRESENTATION FOR FUTURE NEGOTIATIONS An individual shall be ineligible for intercollegiate athletics per Bylaw 12.3.1, if he or she enters in to a verbal or written agreement with an agent for representation in future professional sports negotiations that are to take place after the individual has completed his or her eligibility in that sport.
C.
BENEFITS FROM PROSPECTIVE AGENTS An individual shall be ineligible per Bylaw 12.3.1, if he or she (or his or her relatives or friends) accepts transportation or other benefits from any person who represents any individual in the marketing of his or her athletics ability. The receipt of such expenses constitutes compensation based on athletics skill and is an extra benefit not available to student body in general; or if he or she (or his or her relatives or friends) accepts transportation or other benefits from an agent, even if the agent has indicated that he or she has no interest in representing the student-athlete in the marketing of his or her athletics ability or reputation and does not represent individuals in the student-athlete’s sport. 1. Receipt of money from an agent: A student-athlete who receives money (or other benefits) from an agent who is representing the student-athlete only in a particular sport would remain eligible to participate in a second sport at the member institution. Under such circumstances, the student-athlete’s financial aid would be required to be gradated in an amount equal to the loan or the value of the benefits. 2. Agent charging a fee to a student-athlete on deferred payment schedule: A student-athlete jeopardizes his or her eligibility if an agent provides advice to the student-athlete about a professional contract with the understanding that the student athlete will pay the agent for such services once the student-athlete has
TEXAS STATE UNIVERSITY Athletics Compliance Manual
been drafted by the professional sports organization, regardless of the fact that the agent provides the service only to student-athletes and has the same fee arrangement for all client. 3. Receipt of improper benefit: A student-athlete is determined to have received an improper benefit at the time the student-athlete accepts a benefit associated with an item that is not otherwise permissible under NCAA legislation.
D.
LEGAL COUNSEL Securing advice from a lawyer concerning a proposed professional sports contract shall not be considered contracting for representation by an agent under this rule, unless the lawyer also represents the individual in negotiations for such a contract. 1. When does a lawyer become an agent: A lawyer is not automatically considered an agent, but individuals should be careful that a lawyer’s actions do not trigger his or her status as an agent. An individual is able to get advice from a lawyer about a professional contract but that lawyer will be considered an agent if he or she represents the individual in contract negotiations with a professional organization. Simply being present during contract discussions with a professional organization or having any direct contact (i.e. in-person, by telephone, by mail) with the organization is enough interaction to cause the lawyer to be considered an agent. These same concepts apply to financial advisors. 2. Advice from individuals other than attorneys: NCAA Bylaw 12.3.1 was not intended to restrict individuals other than lawyers (e.g., financial consultants, family friends) from giving advice regarding professional contracts; however, if advice is secured under these circumstances, the individual (e.g. financial consultant, family friend) may not in turn represent the student-athlete in negotiations for such a contract. 3. Attorneys and professional contracts: The NCAA issued the following educational column in 1984 to provide background information on the original purpose of Bylaw 12.3.2, which permits a studentathlete to secure advice from a lawyer concerning a professional sports contract. In 1974, NCAA members recognized that student-athletes might need legal advice to assist them in understanding and evaluating professional sports contract offers made to them while they had eligibility remaining. Accordingly, member institutions adopted the current clause of Bylaw 12.3.2 that permits a studentathlete to seek advice from a lawyer, provided the lawyer does not represent the student-athlete in negotiations for a professional sports contract. It was noted on the NCAA convention floor during consideration of the proposal that a student-athlete may seek the advice of a lawyer relative to future negotiations or discussions of the individual’s professional aspirations, so long as the lawyer does not become actively involved in negotiations with the professional team or organization. The legislation was intended to provide an opportunity for a student-athlete to receive advice so that he or she could understand a contract offer, but it was not intended to involve the lawyer in direct contact with a professional organization. Since the adoption of this legislation, more and more agent-attorneys have used the language to become involved actively in actual contract discussions with professional sports organizations to communicate all contract offers to a particular
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student-athlete through them while at the same time insisting that they are not representing the student in contract negotiations. The legislation does not deny an individual the opportunity to seek competent legal counsel to review the terms of a proposed professional contract and to assist the individual in understanding those terms, nor does it deny an individual the opportunity to be represented by legal counsel if he or she chooses to negotiate a professional contract and forgo his or her remaining eligibility. It does indicate that once a student-athlete decides to have legal counsel and contact the professional club concerning the contract offer, the individual has agreed to be represented by an agent in the marketing of his or her athletic talent, and no longer is eligible per Bylaw 12.3.2. 4. Advice from a lawyer or agent concerning a proposed professional contract: A lawyer or agent may provide advice to an individual regarding the merits of a proposed contract without jeopardizing the individual’s amateur status, provided the lawyer has no contact with the professional sports team and does not market the individual’s athletic ability or reputation in a particular sport. 5. Student-athlete signing an agreement with an attorney: A student-athlete is not permitted to sign an agreement with an attorney to represent the student-athlete in screening inquiries and analyzing offers from agents, inasmuch as the specific request is contrary to NCAA Bylaw 12.3.1. 6. The relationship between student-athlete and lawyer who contacted professional football teams on the student-athletes behalf. The NCAA had confirmed that if a lawyer contacts a professional team(s) on a student-athlete’s behalf and assists in securing a tryout for that student-athlete, an agency relationship exists between the two and, therefore, the relationship is contrary to NCAA Bylaw 12.3.1. 7. Presence of a lawyer at negotiations: A lawyer may not be present during discussions of a contract offer with a professional sports organization or have any direct contact (i.e., in person, by telephone, by mail, or by email) with a professional sports organization on behalf of the individual. A lawyer’s presence during such a discussion is considered representation by an agent.
E.
AMATEUR STATUS An individual loses amateur status and thus shall not be eligible for intercollegiate competition in a particular sport if the individual: 1. Uses his or her athletic skill (directly or indirectly) for pay in any form in that sport (e.g., receipt of payment from agents or for participation in exhibitions or post season all-star contests); 2. Accepts a promise of pay even if such pay is to be received following completion of intercollegiate athletics participation; 3. Signs a contract or commitment of any kind to play professional athletics, regardless of its legal enforceability or any consideration received, except as permitted in Bylaw 12.2.5.1 –exception before initial full-time collegiate enrollment (contact the Athletics Compliance Office for details); 4. Receives, directly, or indirectly, a salary, reimbursement of expenses or any other form of financial assistance from a professional sports organization based upon
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athletics skill or participation, except as permitted by the NCAA rules and regulations. 5. Competes on any professional athletics team (even if no pay or remuneration for expenses was received), except as permitted in Bylaw 12.2.5.1 –exception before initial full-time collegiate enrollment (contact the Athletics Compliance Office for details); 6. After initial full-time collegiate enrollment, enters into a professional draft; or 7. Enters into an agreement with an agent.
F.
PROFESSIONAL DRAFT AND TRYOUTS 1. Inquiry: An individual may inquire about eligibility for a professional-league player draft or request information about the individual’s market value without affecting his or her amateur status. 2. Draft List: After initial full-time enrollment, an individual loses amateur status in a particular sport when the individual asks to be placed on the draft list or supplemental draft list of a professional league in that sport, even though (a) the individual asks that his or her name be withdrawn from the draft list prior to the actual draft; (b) the individual’s name remains on the list but he or she is not drafted; or (c) the individual is drafted but does not sign an agreement with any professional athletics team. 1. Basketball Exceptions - Four-Year College Student-Athletes. i. Men’s Basketball: An enrolled student-athlete may enter a professional league’s draft one time during his collegiate career without jeopardizing eligibility in that sport, provided (1) the student-athlete requests that his name be removed from the draft list and declares his intent to resume intercollegiate participation not later than the end of the day before the first day of the spring National Letter of Intent signing period for the applicable year; (2) the student-athlete’s declaration of intent is submitted in writing to the institution’s athletics director; and (3) the student-athlete is not drafted. ii. Women’s Basketball Exception: An enrolled student-athlete may enter a professional league’s draft one time during her collegiate career without jeopardizing eligibility in that sport, provided (1) the student-athlete is not drafted by any team in that league; and (2) the student-athlete declares her intention to resume intercollegiate participation within 30 days after the draft. The student-athletes declaration of intent must be in writing to the athletics director. 2. Basketball Exception - Two-Year College Prospective Student-Athletes: A prospective student-athlete enrolled at a two-year college in basketball may enter a professional league’s draft one time during his or her collegiate career without jeopardizing eligibility in that sport, provided the prospective student-athlete is not drafted by any team in that league. 3. Football Exception: An enrolled student-athlete may enter the National Football League draft one time during his collegiate career without jeopardizing eligibility in that sport, provided the student-athlete is not drafted by any team in that league and the student-athlete declares his intention to resume intercollegiate
TEXAS STATE UNIVERSITY Athletics Compliance Manual
participation within 72 hours following the National Football League draft declaration date. The student-athletes declaration of intent shall be in writing to the institution’s athletics director. 4. Exception for Sports Other Than Football and Basketball: An enrolled studentathlete may enter a professional league’s draft one time during his or her collegiate career without jeopardizing his or her eligibility in the applicable sport, provided the student-athlete is not drafted and within 72 hours following the draft he or she declares his or her intention to resume participation in intercollegiate athletics. The student-athletes declaration of intent shall be in writing to the institution’s athletics director. 5. Tryout Prior to Enrollment: In sports other than men's ice hockey and skiing, prior to initial full-time collegiate enrollment, an individual may participate in a tryout with a professional team or league, provided he or she does not receive more than actual and necessary expenses to participate. 6. Tryout after enrollment: After initial full-time collegiate enrollment, an individual who has eligibility remaining may try out with a professional athletics team (or participate in a combine including that team) at any time, provided the individual does not miss class. The individual may receive actual and necessary expenses in conjunction with one 48-hour tryout per professional team (or a combine including that team). The 48-hour tryout period shall begin at the time the individual arrives at the tryout location. At the completion of the 48-hour period, the individual must depart the location of the tryout immediately in order to receive return transportation expenses. A tryout may extend beyond 48 hours if the individual self-finances additional expenses, including return transportation. A self-financed tryout may be for any length of time, provided the individual does not miss class. Exception for Predraft Basketball Camp: In basketball, a student-athlete may accept actual and necessary travel, and room and board expenses from a professional sports organization to attend that organization's predraft basketball camp regardless of the duration of the camp. 7. Outside competition prohibited: During a tryout, an individual may not take part in any outside competition (games or scrimmages) as a representative of a professional team.
SECTION II: POLICY & PROCEDURES A.
GENERAL POLICY & PROCEDURES The Athletics Compliance Office is committed to assisting all those connected with the Texas State Department of Athletics in understanding NCAA legislation. Potential sports agents, financial advisors and attorneys for student-athletes should be familiar with all NCAA regulations and how their interaction with student-athletes can have a direct impact on the student-athlete’s eligibility.
B.
CONTACT WITH STUDENT-ATHLETES
TEXAS STATE UNIVERSITY Athletics Compliance Manual
1. Student-Athlete Initiating Contact: A student-athlete or a student-athlete’s parents or legal guardians may contact an agent to schedule a meeting. Per Texas state law, the agent must notify the Athletics Director of the proposed meeting before the meeting takes place. Additionally the agent must be registered with the Texas Office of the Secretary of State within seven days of contacting the student-athlete. 2. Agent Initiating Contact: Texas state law permits athlete-agents to send correspondence regarding their services to student-athletes provided copies of such correspondence are also provided to the Athletics Compliance Office. Agents are otherwise prohibited from initiating contact with student-athletes without notifying the Athletics Compliance Office prior to the contact.
C.
STUDENT-ATHLETE/AGENT INTERVIEWS Texas state law requires that all institutions designate a period not to exceed 30 consecutive business days to schedule student-athlete/agent interviews. The interviews must be held during the off-season training period prior to the student-athlete’s final season of eligibility. 1. Texas State will designate a five day period annually during the month of July for student-athlete/agent interviews. 2. The Athletics Compliance Office will notify all agents who are registered with the State of Texas of the designated interview dates no later than 30 days in advance. 3. All agents must have active registration with the State of Texas at the time of the interview in order to participate. Parties who are not registered with the state of Texas will not be permitted to participate in any interviews. 4. The interviews will be conducted on campus under the direction of the Athletics Compliance Office. 5. The interviews will take place in the presence of a third-party designated by the Athletics Compliance Office. 6. All participating agents are required to sign an affidavit acknowledging the laws of the State of Texas and the NCAA rules applicable to athlete-agents. In addition, agents will be required to acknowledge that any violation of these rules could result in a permanent ban from Texas State University and monetary fines, as determined by the Texas Secretary of State.
D.
VIOLATIONS OF NCAA RULES AND/OR TEXAS ATHLETE-AGENT ACT Agents (or individuals working on behalf of an agent) are subject to exclusion from future athlete-agent interview periods conducted by Texas State University if s/he: 1. Endangers the eligibility of a student-athlete; 2. Repeatedly violates the Texas State University policies; or 3. Engages in fraudulent or unscrupulous behavior Texas State will report any such incidents to: 1. The Texas Office of the Secretary of State, for appropriate disciplinary measures as permitted under the Texas Athlete-Agent Act, and 2. The applicable professional organization (NFLPA, NBPA, MLBPA, etc.).
TEXAS STATE UNIVERSITY Athletics Compliance Manual
E.
POLICY AND NCAA RULES QUESTIONS Any questions related to the Texas State agent policies and/or related NCAA rules should be directed to the athletic compliance office. Assistant AD-Compliance Texas State University 601 University Drive San Marcos, Texas 78666 Phone: 512-245-8322 Fax: 512-245-8387 Email:
[email protected] SECTION III: TEXAS ATHLETE AGENT ACT If you are a sports agent and interested in speaking with a Texas State student-athlete regarding representation, you must first register with the State of Texas as part of the Texas Athlete Agent Act. To do so, contact the Office of the Secretary of State. Office of the Secretary of State Statutory Documents Section Legal Support Athlete Agent Registration PO Box 12887 Austin, TX 78711-2887 (512) 475-0775 Once an individual is registered with the State of Texas, s/he may contact a student-athlete at Texas State University-San Marcos ONLY through the Athletics Compliance Office. A.
Athlete Agent Standards for Football: To be eligible to participate in an interview program for football at Texas State, an agent must: 1. Be registered as an athlete agent pursuant to the State of Texas Athlete Agent Act; and 2. Be certified as an agent by the National Football League Players Association (NFLPA); and 3. Comply with all supplemental oral and/or written instructions from athletics department personnel.
B.
Athlete Agent Standards for Men’s and Women’s Basketball: To be eligible to participate in an interview program for Men’s and Women’s basketball at Texas State, an agent must: 1. Be registered as an athlete agent pursuant to the State of Texas Athlete Agent Act; and 2. Be certified as an agent by the National Basketball Players Association (NBPA) Women’s National Basketball Association (WNBA), American Basketball League (ABL); and
TEXAS STATE UNIVERSITY Athletics Compliance Manual
3. Comply with all supplemental oral and/or written instructions from Athletics department personnel C.
Athlete Agent Standards for Sports Other than Football and Basketball: To be eligible to participate in an interview program for sports other than football and basketball at Texas State, an agent must: 1. Be registered as an athlete agent pursuant to the State of Texas Athlete Agent Act; and 2. Comply with all supplemental oral and/or written instructions from Athletics department personnel
SECTION IV:
RESOURCES
NCAA Agent Information for Student-Athletes. http://www.ncaa.org/wps/wcm/connect/ncaa/ncaa/legislation+and+governance/eligibility+and +recruiting/agents+and+amateurism/agent+info+for+student-athletes/agent_info_4_studentatheltes_index.html