Frequently Asked Questions

SELECTING AND CONTRACTING WITH AN AGENT

We offer this brief set of guidelines as an introduction to some of the frequently asked questions about the business of selecting an Agent. Some of these hints or thoughts may seem obvious, but still others may give you some new ideas in your selection of an Agent who will best be able to help you advance your football career into the professional ranks.

STANDARD REPRESENTATION AGREEMENTS

Drafted by union representatives from the NFL Players’ Association, the NFLPA Standard Representation Agreement is the “regular” form contract players sign with their Agents. It is a bare bones agreement that authorizes the Agent to “represent, advise, counsel, and assist the player in negotiation, execution and enforcement of his playing contract(s) . . .”

WHAT ELSE DOES/CAN THE AGREEMENT DO?

If applicable, the contract should specify the services provided by the Agent beyond contract negotiation. Agents may ask you to enter into agreements for other types of services like endorsements, career and post-career counseling, marketing or insurance. If your Agent is going to handle those things for you, make sure those “extras” are rolled into your representation contract. Some services you probably will want handled by someone other than your Agent (financial planning, accounting, investments and estate planning, for example).

The contract should set the term limit of the agreement, when the Agent starts working for you and when he stops. It should also set the amount the player compensates the Agent (in 2006, this will be a maximum of 3% of a player’s compensation for each season he plays—but you can negotiate a lesser amount). An Agent’s fee structure can vary and might be based on a—

1. Contingent Fee (this would the maximum 3% of your compensation);

2. Time-based Fee (this would be an hourly rate); or

3. Flat Fee (compensation set at a capped, maximum dollar amount).

Importantly, the contract should provide that fees are to be paid on an annual percentage of the player’s earnings—and only after the player has actually earned the money. Also to be set out are the types and amounts of expenses for which the player will reimburse the Agent (generally “reasonable and necessary” communication and travel expenses incurred “in connection with the negotiation” of the player’s contract).

The contract should also specify the expenses the Agent is willing to pay. For example, expenses attributable to preparation for a combine workout and related interviews are items for which the Agent could reasonably be asked to pay. If, however, an Agent promises to arrange for combine/interview preparation, make sure your contract is clear on who pays. The deal may contain an exclusivity clause. This would give the Agent the right to a percentage of all the player’s playing contracts and endorsements—even if the Agent is fired and another Agent ultimately negotiates the contracts.

BEYOND THE NFLPA STANDARD
REPRESENTATION AGREEMENT

Agents may want you to enter into other relationships that may not be specified in writing but are legally binding such as a Borrower/Lender relationship. Do not accept upfront money from your Agent before you have a contract and before you have been paid. It will generally be considered a line of credit and you will have to pay it back, even if you are not signed by a club. Also, it is not a good idea to provide your Agent with a general Power of Attorney. A Power of Attorney is a document that would allows your Agent to sign legally binding documents in your name and bind you to deals without consulting you. That is the quickest way to lose the money you make under your pro contract.

IMPORTANT TIPS FOR PLAYERS

Make sure the services that the Agent will provide are agreed upon and in writing—and in the contract. If not, the Agent may bill you for all services provided not listed in the agreement.

Make sure that you do not take a REFERRAL for a financial advisor or financial planning from the Agent. Find a separate financial advisor based on your decisions.

The Agent should prepare you on preparation for what (hopefully) may be a new lifestyle of notoriety and wealth.

Do not take lines of credit, jewelry, cars or other expensive “gifts” prior to signing the contract and receiving the signing bonus from the NFL club because they are not truly gifts, but loans. Unless you are willing to pay the Agent back for these things, do not take them under any condition, and do not take them even though the Agent “guarantees” that you will go high in the draft. The AGENT CANNOT MAKE THIS PREDICTION EITHER. ONLY YOU WILL DETERMINE WHERE YOU ARE DRAFTED ON DRAFT DAY. If you need a credit line for necessary expenses (i.e., rent, current bills, etc.) make sure you know what the terms are. Again, try not to incur big expenses until the “ink hits the NFL contract.”

The Agent should find you Disability Insurance or Career-Ending Injury coverage.

TIP: Owners of NFL teams do not listen to Agents, why would they? Agents are biased. Agents cannot predict draft order. A good rule of thumb is to assume two rounds lower than projected.

Do not sign partial or full power of attorney to anyone. You are the CEO of your own company. The Agent works for you. The financial advisor works for you. This is why you pay the Agent a fee or a percentage of your hard-earned money.

Make sure the Agent is insured by the new NFLPA required insurance for contract advisors. This insurance or bond provides protection for you if the Agent mishandles your funds or services provided. This is an important factor to consider in evaluating the safety of trusting an Agent with substantial amounts of money, including financial advisors.

Have someone knowledgeable (preferably an attorney of your choice—not the Agent’s choice) read any agreement before you enter into it with your Agent. If the Agent has a problem with this, then he isn’t going to represent your interests well and is only in the deal for himself.

THE INTERVIEW WITH THE AGENT

Ask the Agent to introduce himself and his agency/company and have him distribute any information he may have. Take a brief moment to look over his credentials and then start asking questions. If at all reasonably possible, try to meet face-to-face with the Agent, rather than just over the phone. Once you have established that the Agent has the basic education and certifications necessary, you will want to see if the Agent will fit in with your personality, and how his skills will complement your professional goals.

You will want to work from an outline of points that you want to cover, look for inconsistencies, and ask about the Agent’s background and qualifications. The Agent should provide answers to your questions. To get ready fro your questions, you may want to compose a brief summary that includes some key concepts of what you do well, and what you have to offer. See how the Agent responds and if you feel he is the right person to help with your career.

PROJECTING A PROFESSIONAL IMAGE

Professional sports is just that…a profession. You are now in the business world, and you should make an effort to conduct your affairs in a businesslike manner, even down to your personal appearance. You don’t have to wear a 3-piece suit when you meet with an Agent or with a club’s coach or personnel director, but you do want to give a mature, positive impression that you are serous about the business of being selected to play for the team. Big money is at stake, and you certainly want to convey a polished and professional image at all times.

QUESTIONS TO ASK AGENTS

(Important questions to consider when meeting with agent)

· Tell me a little about yourself.

· Did you graduate from law school and if so, where?

· If not, what is your educational background?

· When did you graduate from law school?

· Where are you licensed to practice?

· Have you ever been disbarred?

· Have you ever been suspended?

· Have you ever been reprimanded?

· Have you ever been disciplined or disqualified as an attorney or as a member of any other profession?

· Currently are any complaints or charges pending against you regarding your conduct as an attorney or as a member of any profession?

· Have you been investigated or implicated for any violations of NCAA or professional league rules?

· How many years of experience do you have as a player-Agent or in the sports representation business?

· What are your greatest strengths / weaknesses?

· How large is your firm?

· How is your firm organized? How do you fit in that organization?

· Do you have ownership interest in your company?

· What services do you offer to your clients other than contract negotiations? Endorsements? Trading cards?

· What is the first thing you will do for me after we sign an agreement?

· How accessible are you to me? Do you deal with me on a daily basis or an associate in your firm?

· Are you an NFLPA certified contract advisor?

· Do you mind if I use my own accountant or financial planner?

· Are you insured by the NFLPA or bonded?

SELF-INQUIRY

· Why do you want me as a client?

· What information do you have about me?

· What are professional teams saying about me?

· What will you do to help me prepare for the draft?

· What should I be doing to better myself in the draft?

· Describe your negotiation style.

· How do you handle controversial situations?

· How do you go about admitting mistakes?

CLIENT RELATIONS

· How many clients do you currently represent?

· How many are active?

· How many are retired?

· How many athletes you represent play my position? How many are veterans and how many are rookies?

· How do you deal with conflict representing players in the same position?

· How many Agents work with each athlete?

· What is the age range of your clients?

· Can you supply me with a list and telephone numbers of current and former-clients?

· Has a player fired you? If so, who, why and when?

· Have you ever fired a player? If so, who, why and when?

· Has the NFLPA or other regulating entity ever disciplined you?

· Who do you consider to be your top client?

· What have you done to advance the career of your clients off the field?

· May I see a sample of the annual statements you send to clients?

CONTRACT ISSUES

· What is your fee structure? Will you help with family issues or is that included?

· What percentage will you charge for representing me? Is the percentage graduated, that is, does the percentage decrease as the amount of the contract you negotiate increases? What is included in your percentage fee?

· Are your fees negotiable?

· Are you willing to represent me for less than your standard fee?

· How will you be paid?

· When will you be paid?

· Who will be negotiating my contract?

· If I enter into a contract with your firm, what is the duration of the agreement?

· Do you represent anyone on an hourly basis? If so, what is your rate?

· Does your firm negotiate endorsement contracts? What percentage do you charge for endorsement contracts?

· Do you have a relationship with a financial advisor in which you are paid any time of fee or percentage?

· Are you a full service firm? Do you have a relationship with a financial planner or is one in your firm? Do you have an in-house attorney to help with unexpected issues?

· Do you mind if I use my own accountant, financial planner, lawyer, etc.

· What happens to our agreement if I am waived from a team or do not make a team?

· What happens to our agreement if I get injured?

· What is the process of releasing me from the contract?

BUSINESS ISSUES

· What kind of contract do you think I should structure?

· What deals have you negotiated for other players you represent? How were they structured?

· Tell me about your most difficult negotiation and how you handled it?

· Are there tax advantages to structuring a contract a certain way that would result in more money to me?

· Explain the salary caps and rookie pool to me and explain how they may affect me. Are there ways around the salary caps? What are they? Have you used these methods with the players you represent? Do you think I have potential for endorsements?

· Should I get a personal trainer? If so, who pays for that? If you do, do you charge a cost back to me?

· If I am likely to be a free Agent, how can you help maximize my chances of making a team?

POST-INTERVIEW

1. Follow up with the list of the Agent’s current and former clients. Ask the clients how they got where they are? Remember, people like to talk about themselves, and you can learn a lot about how an Agent interacts with his her current clients.

2. Keep a list of dates and names of the people you met, and the qualities you like or disliked about those individuals.

Example NFLPA Standard Representation Agreement