United States: Agents Provocateurs: Combating the Epidemic of Rogue Agents

In recent months, the NCAA has launched several investigations into inappropriate relationships between student-athletes and agents or their runners. As a result, athletes and schools such as the University of Southern California and the University of North Carolina have faced player ineligibility and other sanctions. While the great majority of agents play by the rules, it is often glossed over that those who do not, these so-called "rogue agents," are breaking the law by providing improper benefits to student-athletes. By and large, sports agents operate according to state and federal statutes and also rules and regulations promulgated by their industry. Providing improper benefits to college athletes is often a violation of both state and federal laws. Yet it is the student-athletes, some of whom are still teenagers, that face suspension from competition and potential expulsion from school – while the rogue agents largely remain unpunished.

Existing legislation over agents' interaction with student-athletes varies by state. To date, 42 states have laws governing sports agents, 39 of which have enacted the Uniform Athletes Agent Act. Additionally, a federal cause of action exists in the Sports Agent Responsibility and Trust Act of 2004. Despite these myriad rules and regulations, data show that these laws are rarely enforced. State prosecuting bodies claim to lack the resources to effectively enforce agent laws; believing resources are better spent on other, more pressing, criminal investigations. For example, the North Carolina Secretary of State has not sought to prosecute any of the rogue agents involved in the University of North Carolina scandal, despite announcing an initial investigation in July 2010.

Evidenced by the recent investigations into the football programs of USC and UNC, the NCAA has significant resources to assist state and local law enforcement in cracking down on agents breaking the law. Further, these organizations can seek the assistance of the great majority of law-abiding agents in the industry who have a vested interest in seeing this type of activity eradicated. Still, there are certain inherent complications in obtaining information about rogue agent activities. Many athletes have a fear of retribution for reporting agent misconduct as they often bear the brunt of any consequences. Moreover, schools have little impetus to investigate agent misconduct because if they uncover it, the school is forced to take ownership of the NCAA penalties and face player ineligibility and program sanctions. For example, the Unversity of North Carolina has fully cooperated with the NCAA in its recent investigation into the football program, yet was not rewarded with increased transparency from the NCAA. Other schools, including the University of Alabama and Auburn University have chosen to instead resist the NCAA's request for full disclosure and access and have so far reaped the rewards of this tactic by little to no sanctions. Without providing incentives for schools to investigate agent transgressions or increasing enforcement of existing law, players and institutions are left shouldering the burden of agency sanctions.

As the NCAA continues to investigate college football programs across the country, including one of the leading contenders for the Heisman trophy, Cam Newton of Auburn, various suggestions have been proposed to combat the epidemic of unscrupulous agents and improper benefits to college athletes. The solution that has gained the most traction recently is to sanction football players responsible for violating NCAA rules once they begin their professional career. This suggestion does not attack the problem at its root –the rogue agents.

The NCAA and the universities should work in conjunction with state and local law enforcement, and agent industry organizations to form an information sharing partnership. For example, the information gleaned from the NCAA's investigation into USC's football program would provide a strong foundation for the California Secretary of State's criminal investigation into the agent who provided Reggie Bush with improper benefits.

Further, schools that cooperate with the NCAA should be rewarded for maintaining effective compliance programs and affirmatively reporting any issues to the NCAA. The NCAA must improve its investigative transparency for universities to create an incentive for full cooperation.

In conclusion, the recent uptick in rogue agent activity in college sports must be addressed at its foundation. State and local law enforcement, working in conjunction with the NCAA, individual universities and industry organizations, should begin prosecuting agents who break the law. Schools and student-athletes, alike, should be proactive in handling any issues relating to agent relations or NCAA infractions. In dealing with such matters, it is important that you be advised by experienced and trusted advisers. The Ropes & Gray Sports Law Group is highly experienced in this area and can help.

www.ropesgray.com

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Topics
 
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions