Uniform Athlete Agent Act Law and Legal Definition

An athlete agent is an individual who enters into an agency contract with a student-athlete or, directly or indirectly, recruits or solicits a student-athlete to enter into an agency contract. The term includes an individual who represents to the public that the individual is an athlete agen, but is usually defined to exclude family members, guardians, and individual acting solely on behalf of a professional sports team or professional sports organization.

Some states have enacted laws governing contracts made between athletes and athlete agents, which vary by state. Such laws may govern issues such as state registration and recordkeeping of athlete agents and disclosure requirements in their agency contracts. The majority of states have enacted the Uniform Athlete Agent Act (UAAA). The UAAA requires an agent to provide important information to enable student-athletes and other interested parties to better evaluate the prospective agent. The UAAA also requires that written notice be provided to institutions when a student-athlete signs an agency contract before his or her eligibility expires. In addition, the UAAA gives authority to the Secretary of State to issue subpoenas that would enable the state to obtain relevant material that ensures compliance with the act. Finally, the UAAA provides for criminal, civil and administrative penalties with enforcement at the state level.

The following is a portion of a California law dealing with athlete agents:

  • 18897. Every agent contract shall be in writing and shall include a description of the types of services to be performed and a schedule of the fees to be charged under the contract.
  • 18897.1. The following shall be printed on the first page of every agent contract in boldface type at least two points larger than any other type on the page: "This athlete agent has current public disclosure information on file with the California Secretary of State as required by the Miller-Ayala Athlete Agents Act, Chapter 2.5 (commencing with Section 18895) of Division 8 of the Business and Professions Code, which also includes other protections for athletes. Filing of the required information does not imply approval by the California Secretary of State of the terms and conditions of this agent contract or the competence of the athlete agent."
  • 18897.2. A trust fund shall be established when an athlete agent is the recipient of the athlete's salary. An athlete agent who receives any payment on behalf of the athlete shall immediately deposit the payment in a trust fund account maintained by the athlete agent in a state or federally chartered financial institution.
  • 18897.23. (a) Every athlete agent shall maintain records which include the following information:
  • (1) The name and address of each person employing the athlete agent.
  • (2) The amount of fee received from that person.
  • (b) No athlete agent or athlete agent's representative or employee shall make any false entry in the records. All records required by this section shall be kept for at least seven years.
  • (c) This section does not apply to any business of the athlete agent other than the athlete agent business.
  • 18897.27. No athlete agent shall have an ownership or financial interest in any entity that is directly involved in the same sport as a person with whom the athlete agent has entered into an agreement contract, for whom the athlete agent is attempting to negotiate an endorsement contract, financial services contract or professional sports service contract, or for whom the athlete agent provides advice concerning potential or actual employment as a professional athlete.
  • 18897.27. No athlete agent shall have an ownership or financial interest in any entity that is directly involved in the same sport as a person with whom the athlete agent has entered into an agent contract, or for whom the athlete agent is attempting to negotiate an endorsement contract, financial services contract, or professional sports service contract, or for whom the athlete agent provides advice concerning potential or actual employment as a professional athlete.
  • 18897.3. If an athlete agent or athlete agent's representative or employee provides financial services to a professional athlete or student athlete or advises the athlete concerning investment of funds, the athlete agent shall disclose to the athlete any ownership interest the athlete agent, representative or employee has in any entity regarding which the athlete agent, representative or employee is providing financial services or giving advice, and any commission the athlete agent, representative or employee will receive from the athlete's investment.
  • 18897.33. No athlete agent shall knowingly enter into a contract containing any term or condition that, if complied with, would be in violation of law, or attempt to fill an order for help to be employed in violation of the law.
  • 18897.37. No athlete agent or athlete agent's representative or employee shall publish or cause to be published any false, fraudulent, or misleading information, representation, notice, or advertisement. No athlete agent or athlete agent's representative or employee shall give any false information or make any false promises or representations concerning any employment to any person.
  • 18897.4. All forms of advertising used by an athlete agent shall include the name and business address of the athlete agent.
  • 18897.43. No athlete agent shall knowingly secure employment for persons in any place where a strike, lockout, or other labor trouble exists, without notifying the person of those conditions.
  • 18897.47. No athlete agent shall divide fees with or receive compensation from a professional sports league, team, or other organization or its representatives or employee, or offer or allow any full-time employee of a union or players' association connected with professional sports to own or participate in any of the revenues of the athlete agent.
  • 18897.5. No athlete agent shall negotiate or enter into any postdated agent contract, endorsement contract or professional sports services contract or any agent contract, endorsement contract or professional sports services contract that purports to or takes effect at a future time.