Sports Agent 101
When I was young, like many children, I wanted to be a professional soccer player. That obviously did not pan out, but my love for sports never faded. I always wondered, how does someone become a sports agent for professional athletes? The world of professional sports is constantly evolving with every year that passes by. In July of 2021, the NCAA implemented the Name, Image, and Likeness (NIL) policy, which allowed student-athletes to profit from their personal brand for the first time in NCAA history. This change made the role of sports agents more relevant than ever, because now many college and even high school athletes are seeking representation to prepare and set themselves up for future financial success.
The role of a sports agent is to act as the representative of the athlete and to negotiate contracts on the athlete’s behalf. Agents also secure endorsement deals, manage public relations, provide financial guidance, and help athletes navigate rules and regulations for each sports league, among other things. In today’s world, athletes from every league need to have a great sports agent, otherwise they can be leaving money on the table. In sports that are notorious for having short careers, like the NFL or MLB, it is imperative that the absolute potential payout and terms in any given contract are favored towards the player.
There is no single path to becoming a sports agent, but most successful agents hold at least a bachelor’s degree in sports management, business, finance, or law. Many successful agents go on to earn a law degree (J.D.). Each league and country has its own rules for licensing. NFL agents, for example, must hold an undergraduate degree & postgraduate degree, pass the NFLPA exam, a 60-question exam in three hours that covers: collective bargaining agreement, calculating salary cap numbers, player benefits, regulations governing contract advisors, substances of abuse & performance-enhancing policies.2 The NBA, MLB, and MLS have their own distinct licensing requirements to become an Agent. 3
Beyond the necessary certifications and educational degrees, sports agents must also comply with layered legal frameworks that include federal, state, and league-specific laws. In 2004, the U.S. Congress passed the Sports Agent Responsibility and Trust Act (SPARTA), which requires agents to disclose their representation agreements to universities and strictly prohibits providing athletes with anything of value before signing (including gifts). Violations can result in civil penalties.4 In California, Agents must comply with the Miller-Ayala Athlete Agents Act, which requires agents to register with the California Secretary of State, maintain a $100,000 surety bond, and provide athletes with a mandatory disclosure form before signing any representation contract. This act gives the athlete a 90-day right to cancel any agreement without penalty.5
Soccer Agents internationally operate under an entirely different set of legal frameworks compared to Sports Agents in the United States. In Germany, the regional Court of Dortmund, later supported by the Court of Düsseldorf (higher court), blocked FIFA’s Football Agent Regulation (FFAR) in Germany, specifically blocking the agent fee caps, ruling that these restrictions would create anti-competitive price-fixing and infringe upon individual economic freedom, which violated not only German but also EU laws.6In France, national law takes precedence over FIFA regulations. So, in France, an agent must hold a license issued by the French Football Federation (FFF) after passing a formal examination to operate legally; however, the FFF does have a 10% maximum commission rate for the players' remuneration. The French also have rules against receiving payment for representing minors. 7
Two of the most prominent American Sports Agents are Drew Rosenhaus of Rosenhaus Sports and Scott Boras of Boras Corporation. Rosenhaus, a Duke Law graduate, has been
Summary:
Becoming a Sports agent is a challenging journey that varies by sport, league, country, and even state. Sports agents' regulations in Western Europe are anything but uniform, and even within the United States, each state and territory has slightly different regulations you need to know to become a successful agent. Knowing Legal regulations for each country and state, along with league regulations, can help set you up for success and are as important as knowing the game itself.