Sports Law: Chapter 4

Sport agent roles

Negotiating contracts, concession agreements, sponsorships, endorsements, entering events, managing outside relationships, financial planning, securing opportunities, internet/marketing presence

Restatement of Agency

Explains law of agency and how it changes

Agency definition

Relationship where an agent represents a principal

Agency in sports example

Students selling merchandise act as agents of their school

Agency law

Defines rights/responsibilities of principals and agents, agent authority, and creation of agency relationships

Agency relationship

Relationship between principal and agent; both must have legal capacity

Agency relationship issue

Lack of formality can lead to disputes over existence

Authority in agency

Agent must have authority to bind principal; otherwise principal not liable

Actual authority

Agent reasonably believes actions are within scope of authority granted

Scope of authority

Limits on agent’s authority needed to accomplish agency goals

Express authority

Created by written or oral agreement granting authority

Standard representation agreements

Required by unions before agents represent players

Implied authority

Incidental acts reasonably necessary to fulfill express responsibilities

Ultra vires acts

Actions outside scope of authority

Apparent authority

When principal’s conduct misleads third party into believing agent has authority

Rationale for apparent authority

Protects innocent third parties reasonably misled

Ratification

Principal affirms unauthorized acts, making them legally binding

Ratification limits

No ratification if no agency exists or act had no legal effect

Fiduciary relationship

Agent has duty to act primarily for principal’s benefit

Agent duties to principal

Reasonable care, skill, and providing information when requested

Duty of loyalty

Agent must put principal’s interests first, avoid conflicts, and not misuse property or information

Duty of obedience

Agent must follow reasonable instructions, even if advised against

Conflict of interest example

Representing two players competing for same position requires caution or limiting representation

Principal duties to agent

Compensate fairly, reimburse expenses, and maintain good conduct

Contract liability issue

Court must determine liability of principal, agent, or both

Disclosed principal

Third party knows identity of principal and agent is acting for them

Partially disclosed principal

Third party knows agent acts for someone but not who

Undisclosed principal

Third party unaware agent acts for a principal

Respondeat superior

Employer (principal) liable for employee (agent) acts within scope of employment

Key issue in tort liability

Whether agent acted within scope of employment

Court factors for tort liability

Authorization, time/place/purpose, common practice, employer interest, private interests, means furnished, prior knowledge, seriousness of act

Athlete agents focus

Help clients find teams or events

First regulation of athlete agents

California’s Miller-Ayala Athlete Agent Act (1981)

Problem with early agent laws

Inconsistency across states

Uniform Athlete Agents Act (UAAA)

2000 law for uniform registration/certification of agents

UAAA definition of student-athlete

Individual eligible or potentially eligible for intercollegiate sports

UAAA revisions

Updated in 2015 and 2019

Wisconsin law

Wisconsin Uniform Athlete Agents Act

SPARTA (Sports Agent Responsibility and Trust Act)

Federal law prohibiting false promises or gifts to student-athletes

SPARTA goal

Protect student-athletes and universities from unscrupulous agents

Union regulation of agents

NFLPA, NBPA, NHLPA, MLBPA regulate agents representing their players

Union certification rules

Players must hire certified agents; teams negotiate only with certified agents