Agents negotiate complex contracts, yet no law
says they must be
attorneys. Many handle millions of dollars for
their clients,
but nothing requires them to be certified accountants.
They provide investment advice but need to take no
competency test.
"Anyone can be an agent," says Peter Johnson, who runs
International Management Group's team sports division.
"All you have to have is a client."
Hundreds of would be agents are spring up every day.
Most were small-town attorneys with one rookie client,
big-time dreamers fresh out of law school or smooth
talking hustlers who have the nose for the fast lane
and a fast buck.
With so many would-be representatives chasing so few
clients, the competition has become fiercer than ever,
with athletes being pursued well before they are
ready to turn pro.
Many ballplayers in the low minors already have agents,
even though most will never play a game in the majors.
The inducement is free services and the hope that some
will reach the major leagues.
Major League Baseball allows only certified agents
to represent athletes.
But nearly all agents get certified and MLB
Player Association or the MLB teams can do
nothing if one of the agents loses a fortune for his
client.
The Major League League Baseball Player Association
has drawn up guidelines, making agents disclose fees
and
qualifications and submit to annual audits. "By the
fall, you will be able to look at the chart and see that
agent's fee is this and this is what he does for it,
and this is his education and experience," says Donald
Fehr, the asssociation's counsel. "You can see who has been fired
by a player, who has a dispute with a player.
All that information is available."
The MLB Player Association doesn't have the time or resources
to do
detail background checks on all the hundreds of
would-be agents. They ask little more than
your background, education, client lists, fees
and past disputes.
Often an agent walks into our office and tells us he is representing
this player, says Red Sox GM Lou Gorman. "Maybe he
isn't that qualified, and yet we still have to deal with him."
Often agents get themselves into trouble by trying to
handle areas other than contract negotiation. An attorney
who is an expert in contracts may know little about tax law or
financial planning.
Most athletes rarely check agent's credentials or ask penetrating
background questions, likley because they don't know what to ask.
"Most kids who are 21 years old aren't capable of
making a business decision," says Peter Johnson, who handles
International Management Group's team sport division.
"They like and trust someone and make an emotional decision
based on that."
Most reputable agents insist their clients face reality
from the beginning. "Players just want to know where am I
going and how much I going to make." says Lee Fentress
of Advantage International. They don't want to hear their
playing careers may be brief and they should invest wisely
and live on a reasonable budget.
Players should first
buy a house or
condominium and then go for safe investments like
securities, safe mutual funds and some real estate
with very little risk. Players should be very closely
following their finances and ask for financial reports.
The wisest course may be for an athlete to hire
specialists in each area,
rather that trusting everything to one man.
"People ask me what I would do," says Barry Rona,
executive director or Major League Baseball's Player
Relations Committee. " I would hire a lawyer from a quality
firm and I would pay him by the hour. I would hire an
accountant and pay him by the hour. And I would hire
a legitimate investment advisor.
Problems With Agents
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