Agents, Advisors, and Financial Planners powerpoint


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Agents, Advisors, and Financial Planners powerpoint

  1. 1. Navigating the NCAA Regulations Agents, Advisors, and Financial Advisors Dan Trump & Kevin Glover University of Maryland Athletics Department
  2. 2. Agenda <ul><li>NCAA Rules related to Agents and Advisors </li></ul><ul><li>Overview of NCAA Educational Resources </li></ul><ul><li>Uniform Athlete Agent Act Update </li></ul><ul><li>State of Maryland Regulations </li></ul><ul><li>University of Maryland Procedures </li></ul>
  3. 3. Agenda continued… <ul><li>NFLPA Agent Information </li></ul><ul><li>Major League Baseball Agent Information </li></ul><ul><li>NBA and WNBA Agent Information </li></ul><ul><li>National Hockey League Information </li></ul>
  4. 4. NCAA Agent Legislation <ul><li>Amateur Standing </li></ul><ul><li>Pro Drafts, Inquiries and Exceptions </li></ul><ul><li>Negotiations </li></ul><ul><li>Agent/Advisors Involvement </li></ul>
  5. 5. NCAA Amateur Definition <ul><li>12.1.2 Amateur Status </li></ul><ul><li>An individual loses amateur status and thus shall not be eligible for intercollegiate competition in a particular sport if the individual: </li></ul><ul><li>(a) Uses his or her athletics skill (directly or indirectly) for pay in any form in that sport; </li></ul><ul><li>(b) Accepts a promise of pay even if such pay is to be received following completion of intercollegiate athletics participation; </li></ul><ul><li>(c) Signs a contract or commitment of any kind to play professional athletics, regardless of its legal enforceability or any consideration received; </li></ul>
  6. 6. NCAA Amateur Definition (cont.) <ul><li>(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; </li></ul><ul><li>(e) Competes on any professional athletics team per Bylaw 12.02.4, even if no pay or remuneration for expenses was received; </li></ul><ul><li>(f) Subsequent to initial full-time collegiate enrollment, enters into a professional draft; or </li></ul><ul><li>(g) Enters into an agreement with an agent. </li></ul>
  7. 7. Professional Drafts and Inquiries <ul><li> Draft List </li></ul><ul><li>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) </li></ul><ul><li>(a) The individual asks that his or her name be withdrawn from the draft list prior to the actual draft; </li></ul><ul><li>(b) The individual's name remains on the list but he or she is not drafted; or </li></ul><ul><li>(c) The individual is drafted but does not sign an agreement with any professional athletics team. </li></ul>
  8. 8. Draft Exceptions - Basketball <ul><li> Exception -- Professional Basketball Draft -- Four-Year College Student-Athlete </li></ul><ul><li>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. </li></ul>
  9. 9. Draft Exception – Football <ul><li> Exception -- Divisions I-A and I-AA Football </li></ul><ul><li>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. </li></ul>
  10. 10. Professional Contract <ul><li>12.2.5 Contracts and Compensation </li></ul><ul><li>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. </li></ul>
  11. 11. Professional Contract <ul><li> Nonbinding Agreement </li></ul><ul><li>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. </li></ul>
  12. 12. Negotiations/Inquiries <ul><li> Negotiations </li></ul><ul><li>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. </li></ul>
  13. 13. Contract Negotiations <ul><li> Presence of a Lawyer at Negotiations </li></ul><ul><li>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. </li></ul>
  14. 14. NCAA Agent Legislation <ul><li>NCAA Bylaw 12.3.1 </li></ul><ul><li>“ Student-athlete is ineligible if he/she has an oral or written agreement with an agent.” </li></ul>
  15. 15. NCAA Agent Legislation <ul><li>NCAA Bylaw </li></ul><ul><li>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. </li></ul>
  16. 16. NCAA Agent Legislation <ul><li>NCAA Bylaw </li></ul><ul><li>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. </li></ul>
  17. 17. NCAA Advisor Legislation <ul><li>What is permissible?: </li></ul><ul><ul><li>NCAA Rules Allow: </li></ul></ul><ul><ul><li>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. </li></ul></ul>
  18. 18. NCAA Advisor Legislation continued… <ul><li>NCAA Rules do NOT allow an advisor to do any of the following: </li></ul><ul><ul><li>Market a prospective or enrolled student-athlete to any professional team/sports organization; </li></ul></ul><ul><ul><li>Contact professional teams or sports organizations on behalf of an athlete to arrange private workouts or tryouts; or </li></ul></ul><ul><ul><li>Pay for any expenses associated with a professional team tryout or workout. </li></ul></ul>
  19. 19. “ Financial Advisors”
  20. 20. WHO IS A FINANCIAL ADVISOR? <ul><ul><li>“ Any person who, for compensation in any form, gives any financial advice with respect to a Player’s funds.” </li></ul></ul><ul><li>Broker and/or Dealers </li></ul><ul><li>Investment Advisers </li></ul><ul><li>Financial Planners </li></ul><ul><li>Insurance Brokers </li></ul><ul><li>Insurance Agents </li></ul><ul><li>Accountants </li></ul><ul><li>Attorneys </li></ul><ul><li>Estate Planners </li></ul><ul><li>Contract Advisors </li></ul>
  21. 21. NCAA Financial Advisors Interpretation <ul><li>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. </li></ul><ul><ul><li>It was noted that a financial advisor who acts as an agent could be treated as an agent for purposes of applying NCAA legislation. </li></ul></ul>
  22. 22. NCAA Financial Advisors Interpretation cont. <ul><li>It was voted. </li></ul><ul><li>“ 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.” </li></ul>
  23. 23. What Schools are Doing <ul><li>Agent Day Programs. </li></ul><ul><li>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: </li></ul><ul><li>  </li></ul><ul><li>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] </li></ul><ul><li>Incorporating campus law enforcement in surveillance tactics (e.g. filming tunnels). </li></ul><ul><li>Campus or conference registration programs. </li></ul>
  24. 24. What Schools are Doing continued… <ul><li>Closed sports team practices. </li></ul><ul><li>Funneling agent communication through compliance department. </li></ul><ul><li>Communication with: </li></ul><ul><ul><li>State and Local officials regarding agent certification. </li></ul></ul><ul><ul><li>Professional Players Associations. </li></ul></ul><ul><ul><li>AGA staff. </li></ul></ul>
  25. 25. NCAA Web site
  26. 29. Uniform Athlete Agent Act Update
  27. 31. Uniform Athlete Agents Act (UAAA) History and Status <ul><li>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. </li></ul><ul><li>In the fall of 2000, NCCUSL completed its work on the Uniform Athlete Agents Act (UAAA). </li></ul><ul><li>As of June 12, 2006, the UAAA had been passed in 35 states, the District of Columbia and the U.S Virgin Islands </li></ul>
  28. 32. State of Maryland Regulations <ul><li>Applicable statute governing athlete agents: Title 4 Sections 401-426 </li></ul><ul><li>Contact: Dennis Gring Maryland Department of Licensing and Regulation Division of Occupational and Professional Licensing 500 N. Calvert Street, Room 302 Baltimore, Maryland  21202-3651 Phone: (410) 230-6271 Email: [email_address] Website: </li></ul>
  29. 33. Maryland Uniform Athlete Agent Act <ul><li>Maryland Uniform Athlete Agent Act </li></ul><ul><li>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. </li></ul>
  30. 34. Maryland Uniform Athlete Agent Act cont. <ul><li>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. </li></ul>
  31. 35. University of Maryland Regulations <ul><li>Must be registered with State of Maryland </li></ul><ul><li>Must initiate contact with Compliance Office </li></ul><ul><li>All correspondence is sent via the Compliance office </li></ul><ul><li>No contact during playing season and/or prior to eligibility being exhausted </li></ul><ul><li>Professional Sports Counseling Panel involvement </li></ul><ul><li>Informational letter sent to over 400 registered agents every year </li></ul>
  32. 36. Professional Sports Counseling Panel <ul><li>12.3.4 Professional Sports Counseling Panel </li></ul><ul><li>It is permissible for an authorized institutional professional sports counseling panel to: </li></ul><ul><li>(a) Advise a student-athlete about a future professional career; </li></ul><ul><li>(b) Provide direction on securing a loan for the purpose of purchasing insurance against a disabling injury; </li></ul><ul><li>(c) Review a proposed professional sports contract; </li></ul><ul><li>(d) Meet with the student-athlete and representatives of professional teams; </li></ul>
  33. 37. PSCP cont. <ul><li>(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; </li></ul><ul><li>(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 </li></ul><ul><li>(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). </li></ul>
  34. 38. Kevin Glover Director Of Character Education <ul><li>University of Maryland All-American </li></ul><ul><li>UM Hall of Fame </li></ul><ul><li>Detroit Lions 3-time Pro Bowler </li></ul><ul><li>NFLPA Team Representative for 6 years </li></ul><ul><li>NFLPA Executive Committee </li></ul>
  35. 39. Kevin Glover Director Of Character Education <ul><li>Serves on Professional Sports Counseling Panel </li></ul><ul><li>Terps liaison between student-athletes and NFL </li></ul><ul><li>Provides developmental programs </li></ul><ul><li>Coordinates speakers program </li></ul><ul><li>Mentor for all Terp student-athletes </li></ul>
  36. 40. National Football League Players Association <ul><li>Contact information: </li></ul><ul><li>1-800/372-2000 </li></ul>Web site:
  37. 41. NFLPA Staff <ul><li>NFLPA Agent Contacts </li></ul><ul><ul><li>Mark Levin </li></ul></ul><ul><ul><li>NFLPA Director, Salary Cap and Agent Administration </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>(202) 756 - 9100 </li></ul></ul><ul><ul><li>Arthur McAfee </li></ul></ul><ul><ul><li>NFLPA Staff Counsel </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>(202) 463-2207 </li></ul></ul>
  38. 42. NFLPA Financial Advisors Staff <ul><li>NFLPA Financial Advisors Contact: </li></ul><ul><ul><li>Dana Hammonds </li></ul></ul><ul><ul><li>Assistant Director </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>202/463-2219 </li></ul></ul>
  39. 43. National Basketball Players Associations <ul><li>Robert Gadson </li></ul><ul><li>Director of Security/Agent Registration </li></ul><ul><ul><li>212/655-0894 </li></ul></ul><ul><ul><li>E-mail: [email_address] </li></ul></ul><ul><ul><li>Web site: </li></ul></ul>
  40. 44. Women’s National Basketball Players Associations <ul><li>Pam Wheeler </li></ul><ul><li>Director of Operations </li></ul><ul><ul><li>212/655-0902 </li></ul></ul><ul><ul><li>E-mail: [email_address] </li></ul></ul><ul><li>Web site: </li></ul>
  41. 45. National Hockey League <ul><li>Steve Pellegrini </li></ul><ul><li>Vice President and Managing Director of Central Registry </li></ul><ul><ul><li>416/981-2791 </li></ul></ul><ul><li>Web site: </li></ul>
  42. 46. Major League Baseball Players Association <ul><ul><li>Jeff Fannell </li></ul></ul><ul><ul><li>Assistant General Counsel </li></ul></ul><ul><ul><ul><li>212/826-0808 </li></ul></ul></ul><ul><ul><ul><li>Web site: </li></ul></ul></ul>
  43. 47. QUESTIONS