agents, advisors, and financial planners powerpoint

Navigating the Navigating the NCAA RegulationsNCAA Regulations

Agents, Advisors, Agents, Advisors, and Financial and Financial

AdvisorsAdvisors

Agenda

• NCAA Rules related to Agents and Advisors

• Overview of NCAA Educational Resources

• Uniform Athlete Agent Act Update

• State of Maryland Regulations

• University of Maryland Procedures

Agenda continued…

• NFLPA Agent Information

• Major League Baseball Agent Information

• NBA and WNBA Agent Information

• National Hockey League Information

NCAA Agent Legislation

• Amateur Standing

• Pro Drafts, Inquiries and Exceptions

• Negotiations

• Agent/Advisors Involvement

NCAA Amateur Definition

12.1.2 Amateur Status

An individual loses amateur status and thus shall not be eligible for intercollegiate competition in a particular sport if the individual:

(a) Uses his or her athletics skill (directly or indirectly) for pay in any form in that sport;

(b) Accepts a promise of pay even if such pay is to be received following completion of intercollegiate athletics participation;

(c) Signs a contract or commitment of any kind to play professional athletics, regardless of its legal enforceability or any consideration received;

NCAA Amateur Definition (cont.)

(d) Receives, directly or indirectly, a salary, reimbursement of expenses or any other form of financial assistance from a professional sports organization based upon athletics skill or participation, except as permitted by NCAA rules and regulations;

(e) Competes on any professional athletics team per Bylaw 12.02.4, even if no pay or remuneration for expenses was received;

(f) Subsequent to initial full-time collegiate enrollment, enters into a professional draft; or

(g) Enters into an agreement with an agent.

Professional Drafts and Inquiries

12.2.4.2 Draft List

Subsequent to initial full-time collegiate enrollment, an individual loses amateur status in a particular sport when the individual asks to be placed on the draft list or supplemental draft list of a professional league in that sport, even though: (Revised: 4/25/02 effective 8/1/02)

(a) The individual asks that his or her name be withdrawn from the draft list prior to the actual draft;

(b) The individual's name remains on the list but he or she is not drafted; or

(c) The individual is drafted but does not sign an agreement with any professional athletics team.

Draft Exceptions- Basketball

12.2.4.2.1 Exception -- Professional Basketball Draft -- Four-Year College Student-Athlete

An enrolled student-athlete in basketball may enter a professional league's draft one time during his or her

collegiate career without jeopardizing eligibility in that sport, provided the student-athlete is not drafted by any

team in that league and the student-athlete declares his or her intention to resume intercollegiate participation within 30 days after the draft. The student-athlete's declaration of

intent shall be in writing to the institution's director of athletics.

Draft Exception – Football

12.2.4.2.3 Exception -- Divisions I-A and I-AA Football

An enrolled student-athlete (as opposed to a prospective student-athlete) in the sports of Division I-A and I-AA

football may enter the National Football League draft one time during his collegiate career without jeopardizing

eligibility in that sport, provided the student-athlete is not drafted by any team in that league and the student-athlete

declares his intention to resume intercollegiate participation within 72-hours following the National Football League draft declaration date.  The student-

athlete's declaration of intent shall be in writing to the institution's director of athletics.

Professional Contract

12.2.5 Contracts and Compensation

An individual shall be ineligible for participation in an intercollegiate sport if he or she has entered

into any kind of agreement to compete in professional athletics, either orally or in writing,

regardless of the legal enforceability of that agreement.

Professional Contract

12.2.5.1 Nonbinding Agreement

An individual who signs a contract or commitment that does not become binding until the

professional organization's representative or agent also signs the document is ineligible, even if the contract remains unsigned by the other parties

until after the student-athlete's eligibility is exhausted.

Negotiations/Inquiries

12.2.4.3 Negotiations

An individual may request information about professional market value without affecting his or her amateur status.  Further, the individual, his or her legal guardians or the institution's professional

sports counseling panel may enter into negotiations with a professional sports

organization without the loss of the individual's amateur status. An individual who retains an agent

shall lose amateur status.

Contract Negotiations

12.3.2.1 Presence of a Lawyer at Negotiations

A lawyer may not be present during discussions of a contract offer with a professional organization or

have any direct contact (i.e., in person, by telephone or by mail) with a professional sports

organization on behalf of the individual. A lawyer's presence during such discussions is

considered representation by an agent.

NCAA Agent Legislation

NCAA Bylaw 12.3.1

“Student-athlete is ineligible if he/she has an oral or written agreement with an agent.”

NCAA Agent Legislation

NCAA Bylaw 12.3.1.1

It is not permissible for a student-athlete or

prospective student-athlete to be represented by

an agent in the future, regardless of whether the

agreement is now or in the future.

NCAA Agent Legislation

NCAA Bylaw 12.3.1.2

A prospective student-athlete or student-athlete (including friends or relatives) cannot accept any benefits from an agent, financial

advisor, runner, or any other person associated with an agency business,

regardless of the value of the benefit or whether it is used.

NCAA Advisor Legislation

• What is permissible?:

– NCAA Rules Allow:

A prospective or enrolled student-athlete CAN have an advisor to review a prospective professional contract provided that the athlete pays the advisor the going rate for the advisor’s services and as long as the advisor does not participate in negotiations on the athlete’s behalf with the professional team.

NCAA Advisor Legislation continued…

• NCAA Rules do NOT allow an advisor to do any of the following:

– Market a prospective or enrolled student-athlete to any professional team/sports organization;

– Contact professional teams or sports organizations on behalf of an athlete to arrange private workouts or tryouts; or

– Pay for any expenses associated with a professional team tryout or workout.

“Financial Advisors”

WHO IS A FINANCIAL ADVISOR?

“Any person who, for compensation in any form, gives any financial advice with respect to a Player’s funds.”

• Broker and/or Dealers

• Investment Advisers

• Financial Planners

• Insurance Brokers

• Insurance Agents

• Accountants

• Attorneys

• Estate Planners

• Contract Advisors

NCAA Financial Advisors Interpretation

The NCAA Sports Liaison Committee recommended that the Council sponsor legislation

for the 1996 Convention that would prohibit student-athletes from making agreements with

financial advisors.

It was noted that a financial advisor who acts as an agent could be treated as an agent for purposes of applying NCAA legislation.

NCAA Financial Advisors Interpretation cont.

It was voted.

“That the Council issue an official interpretation, rather than sponsor legislation, to confirm the fact that a financial advisor can

be treated as an agent for purpose of the application of NCAA legislation if he or she

acts as an agent.”

What Schools are Doing• Agent Day Programs.

• The SEC has enacted a policy that prohibits institutions from providing complimentary passes (media or all access type passes) that provide access to the field of play or to areas where the agent would be provided access to student-athletes. The actual bylaw is provided below:

 12.3.1 Limitation on Access. SEC institutions shall not issue to a sports agent regular season or postseason game credentials in any sport that provide the individual with access to the sideline, locker rooms, or any area where contact with student-athletes may be possible. [Adopted 6/4/04 effective 8/1/04]

• Incorporating campus law enforcement in surveillance tactics (e.g. filming tunnels).

• Campus or conference registration programs.

What Schools are Doing continued…

• Closed sports team practices.

• Funneling agent communication through compliance department.

• Communication with:

– State and Local officials regarding agent certification.– Professional Players Associations.– AGA staff.

Uniform Athlete Agents Act (UAAA) History and Status

• In 1997, the NCAA and several major academic institutions urged the National Conference of Commissioners on Uniform State Laws (NCCUSL) to consider drafting a model law that would provide a uniform system for regulating athlete agents.

• In the fall of 2000, NCCUSL completed its work on the Uniform Athlete Agents Act (UAAA).

• As of June 12, 2006, the UAAA had been passed in 35 states, the District of Columbia and the U.S Virgin Islands

State of Maryland Regulations

Applicable statute governing athlete agents:Title 4 Sections 401-426

Contact:Dennis GringMaryland Department of Licensing and RegulationDivision of Occupational and Professional Licensing500 N. Calvert Street, Room 302Baltimore, Maryland  21202-3651Phone: (410) 230-6271Email: sportsagents@dllr.state.md.usWebsite: http://www.dllr.state.md.us/license/occprof/sportag.html

Maryland Uniform Athlete Agent Act

Maryland Uniform Athlete Agent Act

On October 1, 2003 the Uniform Athlete Agent Act went into effect, replacing the Maryland Sports Agents Act. This act

changes the way athlete agents apply for licenses in Maryland and increases the length of the license period to

two years. It also requires new provisions designed to inform and protect student athletes be included in agent-athlete contracts. Civil penalties for violation under the

new law can be as high as $25,000.

Maryland Uniform Athlete Agent Act cont.

The Agent Licensing Act licenses and regulates individuals who offer their services to athletes who participate on

interscholastic and intercollegiate sports teams in Maryland. Sports Agents are regulated under the

provisions of Business Regulation Article, Annotated Code of Maryland, Title 4, Section 401-426 and the Code of Maryland Regulations, Title 9, Subtitle 07. The agency

investigates complaints against licensees, as well as complaints related to unlicensed practice. The Board may issue a reprimand, suspend or revoke a license as well as assess as monetary penalties for violations of the law and

regulations.

University of Maryland Regulations

• Must be registered with State of Maryland• Must initiate contact with Compliance Office• All correspondence is sent via the Compliance

office• No contact during playing season and/or prior to

eligibility being exhausted• Professional Sports Counseling Panel involvement• Informational letter sent to over 400 registered

agents every year

Professional Sports Counseling Panel

12.3.4 Professional Sports Counseling Panel

It is permissible for an authorized institutional professional sports counseling panel to:

(a) Advise a student-athlete about a future professional career;

(b) Provide direction on securing a loan for the purpose of purchasing insurance against a disabling injury;

(c) Review a proposed professional sports contract;(d) Meet with the student-athlete and representatives of

professional teams;

PSCP cont.(e) Communicate directly (e.g., in-person, by mail or

telephone) with representatives of a professional athletics team to assist in securing a tryout with that team for a student-athlete;

(f) Assist the student-athlete in the selection of an agent by participating with the student-athlete in interviews of agents, by reviewing written information player agents send to the student-athlete and by having direct communication with those individuals who can comment about the abilities of an agent (e.g., other agents, a professional league's players' association); and

(g) Visit with player agents or representatives of professional athletics teams to assist the student-athlete in determining his or her market value (e.g., potential salary, draft status).

Kevin GloverDirector Of Character Education

• University of Maryland All-American

• UM Hall of Fame

• Detroit Lions 3-time Pro Bowler

• NFLPA Team Representative for 6 years

• NFLPA Executive Committee

Kevin GloverDirector Of Character Education

• Serves on Professional Sports Counseling Panel

• Terps liaison between student-athletes and NFL

• Provides developmental programs

• Coordinates speakers program

• Mentor for all Terp student-athletes

National Football League Players Association

Contact information: 1-800/372-2000

Web site: www.nflpa.org

NFLPA Staff

NFLPA Agent Contacts

Mark LevinNFLPA Director, Salary Cap and Agent Administrationmark.levin@nflplayers.com(202) 756 - 9100

Arthur McAfeeNFLPA Staff Counselarthur.mcafee@nflplayers.com(202) 463-2207

NFLPA Financial Advisors Staff

NFLPA Financial Advisors Contact:

Dana Hammonds

Assistant Director

Dana.Hammonds@nflplayers.com

202/463-2219

National Basketball Players Associations

Robert Gadson

Director of Security/Agent Registration

212/655-0894

E-mail: robert.gadson@NBPA.com

Web site: www.nbpa.com

Women’s National Basketball Players Associations

Pam Wheeler

Director of Operations

212/655-0902

E-mail: Pamela.Wheeler@nbpa.org

Web site: www.wnbpa.org

National Hockey League

Steve Pellegrini

Vice President and Managing Director of Central Registry

416/981-2791

Web site: www.nhl.com

Major League Baseball Players Association

Jeff Fannell

Assistant General Counsel

212/826-0808

Web site: www.mlbplayers.com