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Sports Agent Legislation
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Charles "Cash and Carry" Pyle
One of the first examples of a sports agent, reportedly negotiated a $3,000 per game contract between Red Grange and the Chicago Bears. -
Brown V. Woolf
Plaintiff, a young hockey player hires the defendant as his sports agent. He turns down a contract for the Penguins to go play for the Racers on the advice of the sports agent. The Racers are a new club that immediately undergoes financial problems and ultimately collapse. Plaintiff receives only a small portion of his promised salary yet the defendant acquires his entire 5% fee from the hockey club. Plaintiff claims the defendant breaches his fiduciary duty by failing to investigate further. -
Player-Agent certification program
The NFL became the first professional team sport players' union to initiate a player-agent certification program. -
Detroit Lions, Inc v. Argovitz
Plaintiff sued his agent the defendant for breach of fiduciary duty. The defendant began contract negotiations with a football team for the services of his client. During that time the defendants bid for a football team in a competing league was approved. The defendant then signed his client to his team because the client figured the other team was uninterested in him. The plaintiff filed a motion to invalidate that contract with his agents team and claimed breach of fiduciary duty. Rescinded. -
United States V. Walters
Mail Fraud case, Norby Walters designs a scheme where collegiate players would be offered monetary rewards in return for allowing him to represent them professionally. Players signed Contracts dated after their eligibility was up. Group of Lawyers suggest to him that his actions do not violate any statute. Players not fulfilling their end of the bargain were threatened, leading Walters to be indicted with conspiracy, RICO violations, and mail fraud. Ruling Reversed. -
National Conference of Commissioners on Uniform State Laws
Appoint a drafting committee to develop a uniform statute for regulating sports agents. Eventually leads to the UAAA. -
Uniform Athlete Agent Act
Main goal of the (UAAA) to protect student-athletes from unscrupulous agents by regulating the conduct between athletes and agents. Requires agents to provide prudent information to athletes enabling them to make an evaluated decision on an agent. Penalties in the UAAA include criminal, civil, and administrative with enforcement at the state level. Perhaps the most important aspect of this act is the allowance of an agent’s valid certification to be honored by all states adopting the act. -
Sports Agent Responsibility and Trust Act (15 U.S.C. §7801-7807)
A national legislation regulating the conduct of sports agents and protecting student-athletes by:
1. Providing false or misleading information, or making false or misleading promises or representations.
2. Providing anything of value such as money or gifts to the student-athlete or anyone associated with that athlete.
3. Failing to disclose in writing to that athlete that he or she may lose their eligibility upon signing an agency contract
4. Pre dating or postdating a contract -
Steinberg, Moorad & Dunn INC., v. David Dunn
The defendant worked for the plaintiff until leaving the agency to form his own, bringing numerous lucrative players with him. Plaintiff sued the defendant for breaching his contract, RICO violations, and engaging in unfair business practices enticing players to leave with him. Appellate court reversed the district court's decision overturning a $44.6 million dollar verdict. -
Show me the money
