Regulating Agents

Abstract

This chapter in Sports Law and Regulation: Cases, Statutes, and Problems examines the complex web of common-law rules, state and federal legislation, and player association rules that regulate the agent/athlete relationship. It begins with an analysis of common-law principles, derived principally from the law of agency and contract, which are instrumental in regulating the relationship. Through commentary and case study, the chapter explores agent violations of their fiduciary obligations. Illustrations of improper agent conduct include financial mismanagement and conflicts of interests. Attention is also devoted to breaches by athletes of their obligations to agents - principally their refusal to compensate agents for services rendered. The chapter next provides a detailed examination of mechanisms, in addition to the common-law, developed in an effort to enhance the likelihood that athletes and agents will properly carryout their respective obligations. These mechanisms include newly enacted federal agent regulations, the Uniform Athlete Agents Act (adopted within the last four year by approximately 30 state legislatures), and player association regulations. The chapter concludes with an examination of the unique ethical issues that confront the sports agent. Particular focus is placed on efforts by attorney/agents to shield themselves from the applicability of rules of professional conduct promulgated by state bar associations.

Keywords: Sports Law, Agency, Education

JEL Classification: K12, K30