Sunday, November 21, 2010

The NFLPA and Agents

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)

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