The NFL Players Association (NFLPA) is the most important professional association for NFL agents. Not only does the NFLPA share the common interest of representing players, but they also participate in the regulation of agents.
The NFLPA is the labor union for NFL players, and spends most of its time representing players as a whole unit; negotiating and managing the collective bargaining agreement with the NFL owners, and licensing rights to players names with third parties.
Technically speaking, the NFLPA holds the right to represent individual players in terms of contract negotiations and other services, but chooses to allow agents to do so. They do, however, administer agent licensing and regulations.
For an agent to represent an NFL athlete, he or she must be certified by the NFLPA. This process includes a requirement of a post-graduate degree, application and insurance fees, both which are upwards of $2000, and a $1200 annual fee. Applying agents also have to pass an examination. The combination of fees, education, and in-depth testing produce agents who are knowledgable and serious about their industry. Not anyone can simply become an NFL agent.
The process is beneficial to both the agent and players. Certified Contract Advisors, as agents are called by the NFLPA, are well versed on all areas of the collective bargaining agreement pertaining to player contracts, benefits, salary cap and other relevant topics.
The NFLPA also acts as one of the regulating bodies to NFL agents. While states and the NCAA have some influence within their jurisdiction, the NFLPA has the most power over agents. In addition to requirements for maintaining certification, such as negotiating one new player contract every three years, they also hold the right to suspend or terminate an agent's certification as a disciplinary action. At the end of the day, the NFLPA is looking out for the best interest of the player, not the agent. Of course, personally I do not think this should be a problem as the agent should have the same interest.
The NFLPA also regulates an agent's commission off of a player's contract. Currently, it is the lowest it has ever been at 3%.
Overall, the NFLPA is the most important professional association for an NFL agent, and has produced both positives and negatives for those in the industry. A competitive certification process has weeded out competition, creating more opportunity for those who are licensed. At the same time, the NFLPA has chosen to go the opposite direction of other player's associations, and regulate commissions. The MLBPA for example, does not regulate the agent's commission, creating a free market for agents to set fees.
Aside from regulations it is important for agents to be in tune with the NFLPA because of their common ground, the player. The goal of the NFLPA is to represent and work for its players, the same as an agent. Keeping up communication as well a a pulse on NFLPA happenings is a smart move for any agent.
Source: NFLplayers.com (NFLPA website)
Sunday, November 21, 2010
Sunday, November 7, 2010
Inspiration from John Wooden
I recently listened to a talk given by former UCLA Basketball Coach John Wooden, who passed away last year. His accomplishments on the court are still unparalleled. His teams have won more games and championships than any other. After listening to him speak, I got the feeling he does not see his basketball accomplishments as his greatest success, but rather the impact he had on his players and the way he did things.
Early in the talk, in which I watched from TED.com, Wooden notes on how he defines success through giving your best effort. He says that he grew up learning not to compare yourself to others, because you can only control yourself. I hope my clients will understand this. If they don't, I want to help them. All you can do is give your best everyday. If the player in front of you at your position is an all-star, you cannot do anything about that. What you can do is play and practice to the best of your ability, because that is the kind of person you want to be.
In his day, Wooden told his players "Education first, basketball second." He says he takes great pride in seeing who they have become; doctors, attorneys, teachers. Wooden viewed himself as a teacher. This is an attitude I want to take into being an agent. Granted, so much is different in professional sports. You are not in school anymore, and your sport is your career. My philosophy is life first, sports second. It is important for me to communicate here that I want to see my athletes succeed on the field, and I want to help them in every way possible, but not at the expense of certain things. Even football coaching great Vince Lombardi said, "Faith, Family, and Football." He said that was to be the order of priorities for his players. I heard he said that his first year as coach of the Green Bay Packers, they won the Super Bowl that year.
Although Wooden's position was as a coach, and mine an agent, our situations are similar in that we have an opportunity to extend the realm of our position to have a greater impact. That is exactly what I want to encourage my clients to do, see the opportunity for impact. It is everywhere; teammates, family, community and even the world.
Wooden talked about our desire to see progress, but noted "There is no progress without change." I want to encourage athletes to be agents of change, both in their private life, but also in community and world needs.
Wooden had the trust of the room the moment he stepped in to give this speech. His career success commands such trust, but he didn't talk much about basketball. He inspired and captured the audience with philosophy and insight on life. Something everyone understands. He sat, with no dominating presence or tone, rather as an old man, calmly delivering wisdom from a long life.
Like Wooden, I hope my success is defined by much more than my career accomplishments. I want to help my clients do the same. If anyone questions whether or not this falls in the scope of my profession or if I should only worry about my client's sports career, then I would have asked you to tell John Wooden the same in his day. He had an impact. He was successful in life. Oh, and his career turned out pretty alright too!
885 Wins, 10 National Championships
(UCLABruins.com)
Early in the talk, in which I watched from TED.com, Wooden notes on how he defines success through giving your best effort. He says that he grew up learning not to compare yourself to others, because you can only control yourself. I hope my clients will understand this. If they don't, I want to help them. All you can do is give your best everyday. If the player in front of you at your position is an all-star, you cannot do anything about that. What you can do is play and practice to the best of your ability, because that is the kind of person you want to be.
In his day, Wooden told his players "Education first, basketball second." He says he takes great pride in seeing who they have become; doctors, attorneys, teachers. Wooden viewed himself as a teacher. This is an attitude I want to take into being an agent. Granted, so much is different in professional sports. You are not in school anymore, and your sport is your career. My philosophy is life first, sports second. It is important for me to communicate here that I want to see my athletes succeed on the field, and I want to help them in every way possible, but not at the expense of certain things. Even football coaching great Vince Lombardi said, "Faith, Family, and Football." He said that was to be the order of priorities for his players. I heard he said that his first year as coach of the Green Bay Packers, they won the Super Bowl that year.
Although Wooden's position was as a coach, and mine an agent, our situations are similar in that we have an opportunity to extend the realm of our position to have a greater impact. That is exactly what I want to encourage my clients to do, see the opportunity for impact. It is everywhere; teammates, family, community and even the world.
Wooden talked about our desire to see progress, but noted "There is no progress without change." I want to encourage athletes to be agents of change, both in their private life, but also in community and world needs.
Wooden had the trust of the room the moment he stepped in to give this speech. His career success commands such trust, but he didn't talk much about basketball. He inspired and captured the audience with philosophy and insight on life. Something everyone understands. He sat, with no dominating presence or tone, rather as an old man, calmly delivering wisdom from a long life.
Like Wooden, I hope my success is defined by much more than my career accomplishments. I want to help my clients do the same. If anyone questions whether or not this falls in the scope of my profession or if I should only worry about my client's sports career, then I would have asked you to tell John Wooden the same in his day. He had an impact. He was successful in life. Oh, and his career turned out pretty alright too!
885 Wins, 10 National Championships
(UCLABruins.com)
Thursday, October 14, 2010
Project Management for an Agent (Recruiting)
Recruiting athletes is the most important project for an agent. If I cannot sign athletes, it does not matter how well I can represent them. Just like an event company submits a proposal to put on an event, an agent is proposing to an athlete to be his representation. This process requires everything needed in a project’s management such as planning, budgeting, teamwork and satisfying customers.
The recruiting project begins with a plan and a schedule. First, you have to decide on your targets. Jack Bechta, whom I will be citing throughout this post, prefers only to go after a few players (Bechta). I have personally known other agents who will utilize new media to contact a mass amount of athletes, and keeping up with those who respond.
To better understand the recruitment strategy, it is important to look at the whole schedule first:
August- College football begins
November- College football regular season ends, seniors not going to a bowl game can sign with agents
January- After bowl games all seniors can sign
February- NFL Combine (where seniors perform for NFL scouts)
April- NFL Draft
Many student-athletes have narrowed down their agent decision by the end of the regular season (Bechta). While you do not want to distract a player during the season, it is important to establish contact early on so you will be in the running come decision time. In most cases, including my experience, the process begins prior to the start of the season in August. This is a great time to contact the player before their season starts. It is against NCAA rules to agree to representation before the the student-athlete’s final game (including bowls), but you can talk to them.
The next milestone in the recruiting project is attempting to sign the athlete. This begins around Thanksgiving if they are not headed to a bowl game. Agent Jack Bechta has not had a Thanksgiving since 1994 because of business (Bechta).
Determining location and pitch are important points of strategy in recruitment. Visiting the player in his hometown, and perhaps in his home, can go a long way in making him feel important and comfortable. However, if your agency is located in a big city it may be more beneficial to fly the player to you and court him with the big city experience. (Bechta)
Once a player is signed an agent puts him in training and preparation for the NFL Combine, pro-day and draft. Choosing where to train your players is just another part of the strategic planning process. His performance in the combine can affect where he is drafted, resulting in millions of dollars.
Another phase of project management in recruiting is budgeting. This is one of the largest barriers of entry into the agent business. The average cost an agent accrues is between $15,000- $20,000 per player (Bechta). Keep in mind this is before the player even has an NFL contract. An agent must view it as an investment. In addition to training, an agent has to pay for housing, transportation, food, supplements, equipment and training gear. Here are some rough figures of basic expenses from my experience:
State License- $1,200 (Florida) (bi-annual)
NFLPA License- $1,200 (annual)
NFLPA Application-$1,650 (one-time)
Insurance-$1,750 (annual)
Print & Media-$500-$1,000
-Packets
-Postage
-etc...
Per Player
Training- $12,000 (6 weeks)
Travel-$1,000 (multiple trips)
Rental Car-$1,000
Food-$1,000
Equipment-$1,000
When preparing to embark on the recruiting process, it is important to view it as any other business project. There needs to be a schedule, strategy and realistic budget. It is a large risk that requires patience for a return on investment, in which even the best project management can’t guarantee.
Jack Bechta Citations
Saturday, October 2, 2010
An Agent Must Be On a Good Team, Too
Teams excel when their athletes understand the importance of teamwork. This is no different for agents. In structuring your agency, teamwork allows you to be effective and serve your clients well. This industry offers a lot of services to athletes and is extremely competitive. Having a team with expertise in multiple disciplines not only gives you the ability to offer those services, but positions you against the competition.
The first thing that comes to mind when putting a team together in my industry is diversity. I want to offer expertise and experience from multiple fields to my athletes. This includes areas such as business, negotiation, media, public relations, marketing and health and nutrition. This is a simple concept--the stronger the team is, the stronger the product or service being offered.
Having a diverse team does not necessarily require many employees. In some cases, less team members can be the best choice if they are the right team members. For example, Drew Rosenhaus is one of the most successful and notable NFL agents. He has a team of 5 (www.rosenhaussports.com/staff.php). Together they have developed one of the most successful agencies in sports.
There is another level to putting together a team that I believe is overlooked, and is not on a resume. It is personality and strengths. This is separate from your disciplines or education. These type of things are more rooted in who you are and your make-up as a person. My eyes were opened to this by a company called the Boosterthon Fun Run (http://boosterthon.com/). They are a leadership development company that bring character programs and fundraising to schools. I was thoroughly impressed with their hiring process where they put every candidate through three tests: Meyers Briggs (http://www.myersbriggs.org/), StrengthsFinder 2.0 (www.strengthsfinder.com) and Kolbe Index (http://www.kolbe.com/). These tests reveal such things as how you work and process information and what your strengths are. This information can be utilized to better understand teammates and effectively position within a company.
When I put my team together I plan to asses both their disciplines and experience along with their personality and strengths.
Lastly, practicing solid communication amongst your team is of vital importance. In the agent business you are constantly having to communicate effectively with athletes, coaches, other agents, GM’s, team executives, scouts, marketers and decision-makers. If you cannot communicate effectively within your own team, you will surely be unable to do so outside of your team. The key to this is information and consistency. It is important for a team to meet consistently and be on the same page. Information and understanding lead the way to effective communication.
I look forward to having my team help athletes succeed with theirs.
Friday, September 17, 2010
NFL Agent Interview - Jonathan Kline
Jonathan Kline is an NFLPA Certified agent, and has been in the business since 2002. His agency, Sports Capital Group, is located in South Florida. Jonathan received both his undergraduate and law degree's from the University of Miami. He was kind enough to sit down for an interview with me.
What do you like most about being an agent?
"Watching your player succeed on the field after going through the whole process—recruiting the player, watching him come up through the college ranks, paying for his training, guiding him and then attending the game in which he is succeeding on national television."
"J.R. Reed was my first big client, a 4th round draft pick. I experienced riding with J.R. to the game, parking next to Donovan McNabb, having an all-access pass, and in 2005 the Eagles went to the Super Bowl and I was at all the games."
What’s is most challenging when recruiting players?
"The challenging part is recruiting the player. I have talked to many 1st round picks; it is easy to talk to them. The competition is also difficult. Even though they aren’t supposed to, agents will solicit your players even after they have signed with you, and they can terminate that contract at any time."
What is most challenging when doing a contract for a player?
"Your player needs to understand where they are slotted. You have to look at previous picks where your player was drafted and the money that comes with their position and draft spot. Also, understanding and building incentives into the contract is important."
What is most challenging in retaining a client?
"The question is answered by the question. Retaining the client is the hardest part--staying in contact on a weekly or every other day basis, making sure they have everything they need and how their personal life is going. Also, making sure they are motivated and eating right. I had a player eating McDonalds after practice and I had to tell him McDonalds probably isn’t the meal of champions."
How important are relationships in this business? How close do you want to be?
"I want to make sure my clients know I am there for them, handling their business affairs. I want them to know we will be there for their next contract and know that know other agent will do a better job for them."
Do you need a law degree?
"No, you do not need a law degree. A marketing degree might be best. You are always marketing yourself to players. That being said, a law degree is very advantageous to this business. Those with a law degree will have a step ahead in doing contracts."
How did you break into the business? What was that experience like?
"I started in 2002, and signed many players that were not necessarily draft prospects. My first big client was J.R. Reed in 2004. Kiper had him rated the #44 safety and 5 days after I signed him Kiper’s new rankings had him all the way up to #4. Many agents tried to solicit J.R., but he stuck with me."
Talk a little bit about NFLPA Certification.
"I thought agent exam was tough, and I’ve taken the bar exam. You are required to get certified and fly up to Washington, DC for a two-day conference, including the exam. You must attend a seminar once a year, get insurance, which is provided by NFLPA third-party vendors, and pay annual dues."
What is your advice for someone who wants to be an agent?
"It should not be your only profession. If it is your only means of income, you will probably fail. It takes 5-10 years to really be successful and turn a profit, unless you get lucky and have a 1st round pick right away."
Can anyone do this with hard work, or do you have to get lucky and/or have a previous relationship with a player?
"Hard work will do it, absolutely. There will be a lot of heart ache—courting a player for 8 months, thinking the relationship is good, thinking the player is going to sign with you and then he signs with another agent. It takes a lot of hard work, and you have to have thick skin."
How much start up cost does it take (materials, travel, player training…)?
"For one player the start up costs could be anywhere between 15,000 – 30,000 dollars. That includes your NFLPA certification, fees, insurance, plane fare to see the player and plane fare to fly player to you, as well as training and miscellaneous expenses. The training itself can be between $1,500-$2,500 per week, and the average training is for six weeks."
What would you consider a reasonable/realistic/successful income for an agent?
"That is hard to answer because it can be all over the place, depending on the amount of players and their contracts, but the commission off of a base salary contract would be between $10,000-$15,000."
What are your future plans/hopes for your agency?
"Recruit more players and expand into other sports. Keep doing what we do best which is representing players."
What is your angle? Why should a player sign with you? What makes you different?
"We have a professional staff, and many people who can take care of our players. Right now we have six people on our agency staff. I don’t know of another agency that has six people devoted to athletes--who all can handle our player’s needs. They are on call 24 hours, 7 days a week."
Sunday, September 12, 2010
New MLBPA Agent Regulations
The MLBPA is in the midst of making amendments to the regulations regarding player agents. They are as follows:
In addition to people who negotiate MLB contract terms on behalf of their clients, recruiters and people who provide “Client Maintenance Services” must apply for limited MLBPA certification.
My take: This is interesting. If I’m reading this correctly, even assistants for an agent would have to be registered. I imagine this would include interns, like myself.
Agents who communicate with players that they do not represent must disclose those communications to the MLBPA. If the communication is planned ahead of time, the agent must give the MLBPA 48 hours advance notice. If the player initiates the communication or it occurs spontaneously, the agent must disclose the communication to the MLBPA 24 hours after it occurs.
My take: I imagine the way this would have to be regulated is that a player would have to report an agent who he was in contact with. That is always the tough part of any agent rules, is how to regulate and manage them. This rule should only help protect the players and their current agent.
Agents cannot provide or promise anything of value to players not already represented by them and agents may not provide over $1,500 of free baseball equipment per year to a client.
My take: This should really help out young agents trying to make it in the business and avoid having their players stolen by hotshot agents. Once again, the task here will be actually enforcing this. It is unlikely that a player would report an agent for offering them something.
Upcoming off-season free agency and arbitration eligible players must consult with the MLBPA before making a switch of representation in the off-season.
My take: This seems like an unnecessary way to micro-manage, but so be it.
An agency may attempt to restrict its employees from departing and immediately competing with the agency in signed employment contracts, however, such restrictive covenants must be deemed “reasonable.”
My take: Well, what makes it “reasonable?” Agents leaving an agency and taking players with them is not uncommon. While I do not know what is deemed reasonable, this will probably be a good thing. A company needs to protect themselves, but the employee should have rights to leave and pursue their own career in the industry.
All disputes between agents about player representation are to be submitted to the MLBPA’s arbitration procedure.
My take: This is understandable. The ones who govern agent regulations should be the ones to handle issues and
disputes.
Amendments will be effective October 1st, 2010
Sunday, September 5, 2010
Worth your interest.....
In addition to communicating more about who I am, I hope my blog provides insight of my industry to it's readers. For this very reason I thought I would use my first blog post to recommend some other resources and blogs worth following my the industry.
First and foremost is sportsagentblog.com. This website is run by Darren Heitner and his agency, Dynasty Reps. They do a great job of writing great articles about a variety of topics in the sports representation industry. Their articles are full of useful information as well as professional opinion.
Here are the RSS feeds for sportsagentblog.com and a few more I recommend.
Sports Agent Blog
feed://feeds.feedburner.com/IWantToBeASportsAgent
Agent Lynn Lashbrook and Sports Management Worldwide
feed://www.smww.com/blog/feed/
Pro Sports Group (sports agent news)
feed://www.prosportsgroup.com/rss
Sports Agent and Sports Lawyer Blog
feed://rss.justia.com/SportsAgentAndSportsLawyerBlogCom?format=xml
NFL Agent Jack Bechta
feed://www.nationalfootballpost.com/jack-bechta.xml
Enjoy!
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