teague egan, nflpa blunder?

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  • 8/8/2019 Teague Egan, NFLPA Blunder?

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    Teague Egan. Pathetic.By John M. Phillipswww.mybtsa.com

    Teague Egan. Pathetic. is the title of this entry and how I feel about the situation. Itis pathetic. Who/What am I talking about? Teague Egan is one of the latest agents /contract advisors added to the NFLPA family. I am starting to think that thisfamily this a bunch of cousins of mine have more dysfunction than many of uswill see this Thursday on Thanksgiving. He has already cost a USC Player his eligibilityfor one game and his ego may cause a lot more problems at Southern Cal. If they knewabout him, the NFLPA might have just accidentally opened them up for sanctions.Pathetic.

    NFLPA Agent / Contract Advisor Certification

    The National Football League Players Association, or NFLPA, is the exclusive labor Union made up of all of the players in the National Football League. The NFL isobviously in the business of hiring players to play for the member teams and the

    NFLPAs role is as the advocate and Union of those players. It was founded in 1956, butonly achieved recognition and a Collective Bargaining Agreement in 1968 .1

    The NFLPA provides regulations that licenses, controls and sanctions agents . It onlygoverns those contract advisors that seek to represent players in the NFL. Specifically,the agreement between the NFL and NFLPA mandates, The NFLPA shall havesole and exclusive authority to determine the number of agents to be certified, andthe grounds for withdrawing or denying certification of an agent.

    Agents now undergo screening, testing and regulation. Rules are promulgated or revisedregularly. The NFLPA does not and cannot regulate endorsement or marketing agents. Itcollects between $1200-$1700 per agent each year, not counting the few hundred newapplicants it has each year. Basically, it collects millions of dollars just from agents.

    1 http://www.nflplayers.com/about-us/

    http://www.mybtsa.com/http://www.mybtsa.com/
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    The development of the NFLPAs licensing of agents is somewhat of an evolving story.As of an article dated June 12, 1988, the NFLPA enacted a program to certify agents, butit was regarded as nothing more than a notary public. 2 In the early 90s, there wereapproximately 500 approved NFL agents. 3 Two steps were made to de-incentivize

    becoming an agent. First off, more hurdles were put up to qualify agents. For instance,

    in late 1996, the NFLPA sent a basic quiz to agents on the Collective BargainingAgreement. 4 Approximately 200 to 250 agents either failed or scored poorly. 5 Thereafter,the NFLPA made testing a requirement and required grandfathered agents take the at-home exam until passing. 6 Among those suspended for failing the test was agent LelandHardy, who was widely criticized for the incentive-laden deal he negotiated for NewOrleans Saints then-rookie Ricky Williams .7 Hardy was hired by rapper, Percy Master P Miller, to run his sports agency. 8

    Thereafter, commissions were lowered. Agents initially collected around 10% for their services to a player, which led to more agents signing up. The maximum commission waslater lowered to 4%. In 1998, it was again lowered to 3%. Being an agent was still

    lucrative, but only produced an annual income to agents of $15,000-$30,000 per player with far fewer players in the league. The NFL also didn't have the signing bonuses andguaranteed money that create such an immediate commission these days. As salariesskyrocketed, so did applications to be an agent. 9

    To further tighten the rope, the NFLPA implemented a requirement of a 4-year degree. Italso created a program for vetting and monitoring financial advisors, and began offering

    players rookie symposiums on financial issues. 10 Fees were increased yet again. Whilesome were opposed to new restrictions, several prominent agents said them as a possiblemeasure to clean up the industry. One agent, Jack Wirth, said: "To tell the truth, I'd pay$5,000 if it would mean getting rid of some of these hangers-on. 11 The same article said,

    Because of inconsistent or unenforced state laws and no national standards due to thelack of a federal statute, much of the regulation of sports agent has fallen on the professional sports players' unions. 12 The more things change, the more they havestayed the same.

    Every few years restrictions and cost have increased, making it an ever increasinglyexpensive proposition to be NFLPA-certified. Also, if you dont place a client on an

    2 http://articles.orlandosentinel.com/1988-06-12/sports/0040430080_1_sports-agent-bad-agent-problems-with-agents3 http://www.nytimes.com/1998/07/26/sports/pro-football-protecting-players-their-agents-misconduct-leaves-nfl-union-fearful.html4

    http://www.nytimes.com/1998/07/26/sports/pro-football-protecting-players-their-agents-misconduct-leaves-nfl-union-fearful.html5 Id.6 Id.7 http://www.sportsbusinessjournal.com/article/167098 Id.9 http://www.sportsbusinessdaily.com/article/3136610 http://www.nydailynews.com/sports/football/2009/09/12/2009-09-12_zone.html#ixzz0vNngmxFC11 http://www.sportslawnews.com/archive/Articles%202000/NFLPAAgentfees.htm12 Id

    http://www.nydailynews.com/sports/football/2009/09/12/2009-09-12_zone.html#ixzz0vNngmxFChttp://www.nydailynews.com/sports/football/2009/09/12/2009-09-12_zone.html#ixzz0vNngmxFChttp://www.nydailynews.com/sports/football/2009/09/12/2009-09-12_zone.html#ixzz0vNngmxFC
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    NFL roster within three years or pay for your dues or insurance, or attend a mandatoryseminar each year, you are out. Now a graduate degree is generally required, but theNFLPA will allow for certain exceptions. One of those exceptions and the purposefor this entry is- Teague Egan.

    Who is Teague Egan?

    I am not exactly sure who Teague Egan is, but he is one of the latest buzz names aroundsports. My research revealed he is a NFLPA certified agent. His place of business is hismother and fathers house, a multi-million dollar home in Ft. Lauderdale. His father wasapparently listed as one of Americas richest by Forbes magazine. Id love to know if hehas any tie-ins or what his qualifications were to NOT to even have to have a collegedegree, much less a graduate degree. It sure seems like gross negligence on the

    NFLPAs part to certify him.

    Why? He is apparently a college student at USC, according to official school records per ESPN. According to his bio, Teague attended the University of Southern California,where he started 1st Round Enterprises becoming the founder and chairman. Originallyfrom Fort Lauderdale, Florida, but now living in Los Angeles, the entertainment capitalof the world, Teague befriended many athletes on the USC football team, as well asfilmmakers around the city. Already, I see a red flag / potential misrepresentation onwhether he attends or attended USC. Regardless, I see no degree, at all,mentioned.

    According to ESPN, Southern California freshman tailback Dillon Baxter was ruledineligible to compete for the Trojans because he rode in a golf cart on USC's campus.

    USC self-reported the infraction and also filed an official request with the NCAA for Baxter's reinstatement. There are also tons of photos of Egan with current USC Players or allegations he threw parties they attended. Hello, NCAA! Poor USC.

    Egan: "As an (sic) contract advisor, I have never ever given a player money, anything of monetary value, or extra benefit not afforded to other students or my friends," Eganwrote in a statement to ESPNLosAngeles.com Saturday night. "We did not mean or intend to break any rules, and are truly sorry this instance got blown out of proportion."

    http://espn.go.com/college-football/team/_/id/30/usc-trojanshttp://sports.espn.go.com/ncf/player/profile?playerId=500240http://espn.go.com/college-football/team/_/id/30/usc-trojanshttp://sports.espn.go.com/ncf/player/profile?playerId=500240
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    Remember, his site said, Teague befriended many athletes on the USC football team,as well as filmmakers around the city. Is he trying to hide behind these Playersbeing his friends? It doesnt matter under the law/rules.

    "Obviously we take this very serious," Kiffin said Friday in a video released on the

    school's website. "We talked to Dillon and Dillon didn't know that [the student was anagent], but we turned it in to the NCAA and, in the meantime, he won't be going with us."This is interesting because the question is- is Baxter a friend or not? Either he is nota friend and didnt even know Egan was an agent or he was a friend and likely knewand lied about it. It is exactly why students should NEVER be certified. Further, itreally doesnt matter as you will see in the Rules/Laws below.

    Egan is just another in a world of hanger-ons who think they can be an agent becausethey are a huge sports fan, have people that can help with the contracts and/or simplyhave the connections to open the door. Wrong. That ship needs to sail. It is time for

    NFL agents to have real qualifications and experience. Otherwise, the voyage the P

    in NFLPA, the Players, are on will continue to lead them to an island of economic ruin.That is not amusing to me.

    What are the Rules?

    NCAA

    NCAA Bylaw 12.3.1 (General Rule) states that an individual shall be ineligible for participation in an intercollegiate sport if he or she ever has agreed (orally or in writing)to be represented by an agent for the purpose of marketing his or her athletics ability or reputation in that sport. Further, an agency contract not specifically limited in writing to asport or particular sports shall be deemed applicable to all sports, and the individual shall

    be ineligible to participate in any sport.

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    NCAA Bylaw 12.3.1.1 (Representation for Future Negotiations) indicates that anindividual shall be ineligible per Bylaw 12.3.1 if he or she enters into a verbal or writtenagreement with an agent for representation in future professional sports negotiations thatare to take place after the individual has completed his or her eligibility in that sport.

    NCAA Bylaw 12.3.1.2 (Benefits from Prospective Agents) states that an individualshall be ineligible per Bylaw 12.3.1 if he or she (or his or her relatives or friends)accepts transportation or other benefits from:

    a. Any person who represents any individual in the marketing of his or her athleticsability. The receipt of such expenses constitutes compensation based on athleticsskill and is an extra benefit not available to the student body in general; or

    b. An agent, even if the agent has indicated that he or she has no interest inrepresenting the student-athlete in the marketing of his or her athletics ability or reputation and does not represent individuals in the student-athlete's sport

    NCAA Bylaw 12.2.5.1 (Nonbinding Agreement) stipulates that an individual who signsa contract or commitment that does not become binding until the professionalorganization's representative or agent also signs the document is ineligible, even if thecontract remains unsigned by the other parties until after the student-athlete's eligibility isexhausted.

    Additionally, the NCAA has taken the position that the easiest way to ensure thatnothing impermissible has occurred between student-athletes and an agent is to limit theinteraction between them and agents. Ultimately, the institution must be comfortable thatwhatever contact has occurred is permissible under the bylaws.

    NFLPAThe NFLPA prohibits, Communicating either directly or indirectly with (including

    but not limited to in person, telephonic or electronic communication ) a prospectiveplayer who is ineligible for the NFL Draft pursuant to Article XVI of the CBA or communicating with (including but not limited to in person, telephonic or electroniccommunication) any person in a position to influence a prospective player who isineligible to be drafted pursuant to article XVI of the CBA until the prospective player

    becomes eligible for the NFL Draft.

    And, (b) speaking or presenting to groups of prospective players in a setting where prospective players who are ineligible for the NFL Draft pursuant to Article XVI of theCBA are present at such presentation.

    It also prohibits:(2) Providing or offering money or any other thing of value to any player or prospective player to induce or encourage that player to utilize his/her services;

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    And, (3) Providing or offering money or any other thing of value to a member of the players or prospective players family or any other person for the purpose of inducing or encouraging that person to recommend the services of the Contract Advisor;

    And, (4) Providing materially false or misleading information to any player or

    prospective player in the context of recruiting the player as a client or in the course of representing that player as his Contract Advisor;

    And, (14) Engaging in unlawful conduct and/or conduct involving dishonesty, fraud,deceit, misrepresentation, or other activity which reflects adversely on his/her fitness as aContract Advisor or jeopardizes his/her effective representation of NFL players.

    Among other violations, something of violation was provide to a Player that was not evensupposed to be communicated with by Egan or his agency.

    State Law

    Additionally, California law holds:

    ARTICLE 3 STUDENT ATHLETES AND EDUCATIONAL INSTITUTIONSSECTION 18897.6-18897.77

    No athlete agent or athlete agent's representative or employee shall, directly orindirectly, offer or provide money or any other thing of benefit or value to a student-athlete.

    An athlete agent or his representative or employee may NOT make or continue anycontact (e.g., in person, in writing, electronically, or in any other manner) with anystudent athlete, or the student athlete's spouse, parent, foster parent, guardian,grandparent, child, sibling, aunt, uncle, or first cousin (or any of these individuals for whom the relationship has been established by marriage), or any person who resides inthe same place as the student athlete, or any representative of any of these persons.

    No athlete agent or his representative or employee shall offer or provide money oranything of benefit or value, including, but not limited to, free or reduced price legalservices, to any university or any representative or employee of any such educationalinstitution in return for the referral of any clients or initiation of any contact above.

    As his agency is in Florida , Florida law may also govern. Yet, Teague has never registered in Florida. That may be a felony.

    Conclusion

    Sports Illustrated reported that 78% of all NFL Players are broke/bankrupt 3 years after they leave the league. The NFLPA is their guardian and if it does not start holding thoseIT CETIFIES to a higher standard, it may have bigger problems than an NFL Lock-out.

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    The same goes for States. It is time to enforce the law. By certifying Teague Egan, the NFLPA has opened a door to severe legal problems and challenges to schools and the NCAA. More must be done now.