Sports Agents and Financial Advisors
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1 POLICIES AND PROCEDURES REGARDING Sports Agents and Financial Advisors University of North Carolina Department of Athletics RULES AND REGULATIONS FOR CAROLINA STUDENT-ATHLETES
2 INTRODUCTION The University of North Carolina at Chapel Hill Department of Athletics strongly believes in the importance of educating student-athletes and their parents/legal guardians on the issues surrounding a future career in professional athletics. In this process, negotiations with agents are usually necessary. Richard Baddour, Director of Athletics, is firmly committed to providing any assistance you may need. As part of the educational process, the Department has created this brochure to assist our studentathletes and their parents/legal guardians in better understanding how to prepare for a professional athletics career and how to do so within the realms of NCAA legislation. This brochure is designed to provide information about a student-athlete s NCAA eligibility with respect to solicitation by agents and professional sports teams. This material covers both the NCAA and the Department of Athletics rules for sports agents and financial advisors. Our intention is to protect the welfare of our studentathletes, their families, and our University. We offer our assistance in addressing issues involving sports agents and financial advisors. Please take a moment to read this brochure carefully. If you have any further questions, please feel free to contact the following people, within the Department of Athletics, at *Lance Markos, Asst. Dir. of Compliance *Corey Holliday, Assoc. Athletics Director You may also speak with your head coach if you have any questions concerning agents and advisors.
3 What is a sports agent? The NCAA defines a sports agent as any individual or agency that represents a studentathlete for the purpose of marketing his or her athletics ability or reputation. As a general rule, if you ever agree (verbally or in writing) to be represented by an agent for the purpose of marketing your athletics ability or reputation, you will be ineligible for participation in the intercollegiate sport in which you make the agreement. What does the NCAA say about agents? Dishonest sports agents have negatively influenced student-athletes, and intercollegiate athletics in general, for many years. Their activities have included encouraging student-athletes to violate NCAA rules by accepting gifts or signing illegal contracts, even though such infractions, if discovered, could cause the student-athletes to lose both their athletics scholarship and their eligibility to participate in intercollegiate athletics. The NCAA has recognized the negative influence of untrustworthy financial advisors and sports agents on intercollegiate athletics and has developed a multifaceted plan to respond to the abuses. Their plan includes heightened educational efforts, tougher enforcement, increased studentathlete financial support, and improved monitoring. NCAA legislation dealing with sports agents and professional sports teams seeks to preserve the amateur status of collegiate student-athletes. The applicable rules apply both to the student-athlete and his or her parents/legal guardians and relatives. NCAA legislation and policies regarding agents can be found by taking the following steps: Eligibility and Recruiting link (found under Legislation and Governance tab) 3. Agents and Amateurism tab (found on lefthand column)
4 BE AWARE You will lose your eligibility if: 1) You enter into an agreement with an attorney (verbal or written) to represent you in screening inquiries and analyzing offers from agents. 2) Prior to completing your collegiate eligibility, you enter into an agreement (verbal or written) with an agent to represent you after you complete your eligibility. 3) You have a lawyer present during contract discussions with a professional sporting organization, or a lawyer has direct contact with an organization on your behalf. Exceptions to the Agent Rule: 1) If you are seeking a degree in the performing arts (e.g., theater, drama), you may retain an entertainment agent for the purpose of pursuing appearances in radio, television, and theatre. In order to do this, though, your athletics skill or ability cannot be used in any manner to secure such appearances, and any compensation you receive must be at a rate commensurate with your skill and experience as a performer. It cannot be based in any way on your athletics ability or reputation. In addition, any compensation you receive must be consistent with applicable NCAA regulations on a studentathlete s maximum amount of financial aid; 2) If you enter into a sport-specific contract with an agent, you will lose eligibility in that sport, but will still be eligible to compete at the collegiate level in a different sport. If the contract is not sport-specific, you will lose collegiate eligibility in all sports.
5 What does UNC say about agents? 1) You or your relatives MAY NOT receive benefits from anyone outside of your family and the Department of Athletics. These items include, but are not limited to: a) Loans that are not obtained according to the established policies and practices of an accredited commercial lending institution; b) Items or services of monetary value (e.g., meals, clothing, transportation, etc.); and c) Compensation, either directly or indirectly, for your athletics performance. 2) You MAY NOT negotiate or enter into any kind of agreement, either verbal or written, to compete in professional athletics. 3) You MAY NOT be involved in any commercial endorsements of a product, service, or establishment. 4) You MAY receive advice from a lawyer or other individual concerning a proposed professional sports contract, provided the advisor/legal counsel does not represent you directly in negotiations for the contract. Before obtaining the services of an advisor/legal counsel, please contact the Department of Athletics about NCAA regulations involving these proceedings. 5) Prior to contacting any student-athletes, the North Carolina Uniform Athletes Agents Act requires any individual acting as an agent in North Carolina to register with the North Carolina Secretary of State s Office. For more information please visit the agency s website: Additionally, agents are required to register with the Department of Athletics prior to contacting any student-athletes. For more information, please call the Department of Athletics at
6 When can I speak with an agent? Agents may attempt to contact you at any time and at any location. They may try to recruit you into a professional sports or financial services contract that pledges or attempts to secure employment with a professional sports team. We ask that you obey the following guidelines when the time comes for you to begin speaking with agents: 1) The UNC Department of Athletics requests that you, your parents/legal guardians, and you relatives DO NOT have contact with an agent or financial manager until your eligibility has expired. Although this is not an NCAA rule, we believe it will help protect our student-athletes eligibility for intercollegiate athletics. 2) In addition, we ask that you and your family refrain from communicating with agents until your season has concluded. This will assist you in maintaining your focus to perform at the highest possible level both academically and athletically. What can my coaches do to help me? With the approval of the Director of Athletics, your coach may: 1) Communicate directly with representatives of a professional athletics team to secure a tryout with that team for you, when permissible per NCAA rules; 2) Assist you in the selection of an agent by participating on your behalf in interviewing of agents, reviewing written information that agents send to you, and having direct communication with individuals who can comment about the abilities of agents (e.g., other agents, players associations);
7 3) Visit with player agents or representatives of professional athletics teams to assist you in determining your market value (e.g., potential salary, draft status). How Can UNC help? After you have exhausted your eligibility, the Department of Athletics can provide valuable assistance in selecting an agent. Please be aware that the following services and resources are available to you as a UNC student-athlete wishing to pursue a professional athletics career: 1) To help you focus on your academic and athletics performance during the season, UNC will, upon receiving your approval, hold all mail you receive from agents. At the conclusion of your season, we will forward this mail to you. 2) University personnel can provide guidance in several areas, including: a) screening or selecting agents; b) providing insight and reviewing proposed professional sports contracts, merchandising and licensing agreements, and endorsement contracts; and c) assisting to secure tryouts with professional teams. 3) Since many UNC alumni are currently competing in professional sporting leagues and events in the United States and abroad, the Department is familiar with many agents and financial advisors and is in a position to assist you in the transition from collegiate to professional athletics.
8 CONCLUSION Since you are a part of our athletics program, the Department of Athletics has a vested interest in your success and well-being as a collegiate student-athlete. It is for this reason that we caution you about becoming involved with sports agents. It is important to have someone you trust negotiating contracts for you and advising you on career and life decisions. There are many qualified sports agents that can help you in this process. However, there are also many dishonest ones that will take advantage of your lack of knowledge and experience. It is critical that you consult with your coaches and other Department of Athletics officials when it is time for you to make the transition from collegiate to professional athletics. Above all, please remember that your involvement with agents could jeopardize your remaining collegiate eligibility. Therefore, we stress to you the importance of consulting with your coaches or members of the Department of Athletics prior to engaging in ANY communication with an agent. Our desire is to provide the best possible opportunities for you as a collegiate student-athlete and to help you take full advantage of the resources we have in the area of sports agents when it becomes time to further your athletics career.
All athlete agents interested in contacting or representing a student-athlete must be registered with the following:
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