National Conference of Commissioners on Uniform State Laws

211 E. Ontario St., Suite 1300, Chicago, IL 60611
tel 312-915-0195, fax 312-915-0187

For Immediate Release

ACT REGULATING RELATIONSHIP BETWEEN STUDENT ATHLETES AND AGENTS APPROVED

August 3, 2000 - A national law group that drafts state laws today approved important new legislation that will govern the relationships among student athletes, athlete agents and educational institutions. The Uniform Athlete Agents Act was approved by the National Conference of Commissioners on Uniform State Laws (NCCUSL) at its 109th Annual Meeting in St. Augustine, Florida, July 28th through August 4th. This legislation is now available for enactment in every state legislature.

Today, many college athletes entering the professional ranks are offered huge multi-million dollar contracts. The majority of these athletes have agents who will negotiate those contracts. Most athlete agents provide valuable services which are greatly needed by student athletes. The services usually include negotiations with professional sports organizations and securing endorsement contracts. The services may also include financial and investment management, tax planning, legal counseling and a variety of other career management services.

However, frequent headlines report improper or illegal contacts between agents, or would-be agents, and athletes with remaining intercollegiate eligibility. The damage caused by improper and illegal enticements to student-athletes is far greater than the casual observer might believe. The student-athlete who enters into an agency contract may lose eligibility and may diminish his or her value in the professional sports market. The educational institution may also lose post-season competition revenue and may be subjected to sanctions from the NCAA. Additionally, in some states, the athlete agent and student-athlete may be subject to civil and criminal sanctions.

As a result of problems with athlete agents and the student athlete, at least 28 states have enacted statutes regulating athlete agents. However, certain provisions in the existing statutes are vague and vary considerably from state to state. These statutes do not contain registration reciprocity. An athlete agent intending to do business in each state is required to comply with 28 different sets of requirements for registration and be aware of 28 different regulatory schemes. To address this problem, NCCUSL drafted the Uniform Athlete Agents Act.

The purpose of the Uniform Act is to protect the interests of student athletes and academic institutions by regulating the activities of athlete agents. To that end, the new act provides the following:

• Reciprocity of registration.
• Authorizes denial, suspension, or revocation of registrations based upon similar actions in another state.
• Regulates the conduct of individuals who contact student athletes for the purpose of obtaining agency contracts.
• Requires notice to educational institutions when an agency contract is signed by a student athlete.
• Provides a civil remedy for an educational institution damaged by the conduct of an athlete agent or student athlete.
• Establishes civil and criminal penalties for violations of the Act.

The committee to draft the Uniform Athlete Agents Act was chaired by Richard C. Hite of Wichita, Kansas. Other committee members included: Jerry L. Bassett, Montgomery, Alabama; Teresa Ann Beck, Jackson, Mississippi; Charles W. Ehrhardt, Tallahassee, Florida; Thomas L. Jones, Tuscaloosa, Alabama; Joshua M. Morse, III, Tallahassee, Florida; Harvey S. Perlman, Lincoln, Nebraska; Frederick P. Stamp, Jr., Wheeling, West Virginia; Harry M. Walsh, St. Paul, Minnesota; and Harry Wiggins, Jefferson City, Missouri. Robert N. Davis of Oxford, Mississippi, served as the committee's reporter.