Wednesday, October 13, 2010

A New Cold War: NCAA Sanctions, Sports Agents, and State Law

Concerns about improper contact between athletes and sports agents have seen a recent spike. In the wake of the NCAA’s heavy sanctions against football powerhouse, Southern California, agents are now garnering a newfound level of negative attention. In the competitive sports representation industry, gaining an advantage is essential to success; however, such advantages may in fact violate state laws.

California, for example, passed the Miller-Ayala Athlete Agents Act, a subsection of its comprehensive Business and Professions Code, to govern the activities of sports agents and what it defines as “Student Athletes.” (Read in full, here: http://grfx.cstv.com/photos/schools/usc/genrel/auto_pdf/07-ayala-agent-act.pdf ) This law is intended to protect amateur college athletes, as well as their respective schools, from dealings with sports agents that would negatively impact an athlete’s eligibility to compete in the NCAA, and subject the athlete’s school to NCAA sanctions. California is not alone in this regard; 41 other states have similar laws on the books. The question is: are these laws properly enforced? Not so, according to a review by the Associated Press.

According to the AP review, of the 41 states that have sports agent laws on the books, none have yet to revoke or suspend a single license, or invoke penalties of any sort. Nonetheless, the enormous damage agents acting outside the rules can cause a university is clear. Case in point, Southern Cal, which has lost scholarships, been banned from BCS eligibility for two years, and has lost several star players who left the university once they realized there would be no hope of a postseason. The NCAA has now launched investigations into other powerhouse athletic programs for alleged improprieties, including Florida, North Carolina, Tennessee, and Alabama. Alabama football head coach, Nick Saban, has recently gone so far as to close practices to all scouts and outsiders. The NCAA rules do allow agents to meet with college athletes; however, those students may not enter into contracts or accept any gifts or incentives. These regulations do not apply to the agents, though; the NCAA has jurisdiction over only the players, coaches, and overall participating universities.

The Uniform Athletes Agent Act proposes standardized rules for sports agents, and is on the books in 39 states. Among other provisions designed to protect athletes and their respective schools, the UAAA requires mandatory registration and that agents notify schools immediately when they sign college athletes. Here, in California, the UAAA is under consideration; however, the Miller – Ayala Act remains the primary enforcement statute.