Sports Agent and Sports Lawyer Blog

Maybe you are lucky enough to have played pro sports long enough to have earned a pension. That's the good news. The bad news is that if an athlete undergoes a divorce, the ex-spouse may be entitled to a portion of their retirement or pension fund.

In Florida, pension and retirement funds that accrue during the marriage must be treated as marital property and shared equally. However, there are exceptions and modifications to this rule that may help you protect all or part of your retirement savings.

Florida law holds that all vested and non-vested benefits, rights, and funds that accrue during the marriage are marital assets subject to equitable distribution during a divorce. This law applies to any 401(k), pension, Individual Retirement Account (IRA), annuity, or Deferred Retirement Option Program right (DROP) that is acquired or accrues during the course of the marriage.

If the court determines a pension or retirement fund is a marital asset, they will issue a Qualified Domestic Relations Order (QDRO) that instructs the plan administrator to divide the fund according to the divorce decree. The non-employee spouse is usually entitled to the same rights under the plan as the employee spouse, such as cost-of-living adjustments and early withdrawal options, and is eligible to receive his or her share of the ex-spouse's benefits when the ex-spouse is entitled to receive them.

Continue reading " Athlete Pensions - Fair Game in Divorce? " »

Baseball scouting in the Dominican Republic is a well-documented problem these days, as a few high profile players have been caught misleading their teams about their age. Now, a Dominican Republic court has ordered the Washington Nationals to pay about $75,000 in damages to former scout Jose Baez who was fired after signing a Dominican prospect who lied about his age.

As usual, ESPN The Magazine’s Jorge Arangure Jr., is all over the story (he is one of the only top-level American journalists covering the inner workings of baseball in Latin America). Based on Arangure’s summary of the testimony, the reason Baez was fired was because he was believed to have participated in the player’s scheme to lie about his age.

Bottom line here: This is just another sordid chapter in MLB’s decades-long mismanagement of baseball in the Dominican Republic. Change is inevitable, but there is no agreement on the best way to reform the system. While some people call for a global draft as the panacea to solve these problems, there are numerous reasons not to have a worldwide draft, such as the inevitable destruction of local baseball (see Puerto Rico for an example). My proposed solution is for MLB teams to invent a new classification, which would be below the current “Rookie League” level, and play two or three teams in established leagues. Those who succeed would eventually be promoted to Rookie League or low Class-A teams in the U.S. As they would be taking kids as young as 16, the teams would be charged with educating the kids and keeping them until they age out of the system a couple of years later.

Just wanted to follow up on this week’s recent blog post about high school basketball players and the problems with the NBA’s “one-and-done” rule.

First, in an op-ed piece in the New York Times, Buzz Bissinger weighs in on all the problems with the NBA's age limit restriction that he has observed in the years since its implementation. From the article:

But the right decision would be to abolish the N.B.A. age limit. Equally important, professional sports leagues and the N.C.A.A. should stop jumping into the same Jacuzzi together, turning the idea of “student-athletes” into a farce, padding university coffers and keeping the pro owners from having to pay for the grooming of young talent

Sports Law Blog provides it usual cogent analysis of the legal ramifications of the situation.

Second, Darren Heitner of Sports Agent Blog, which is a must-read for anyone interested in learning how sports agents do business, weighs in on a new NCAA proposal regarding amateurism and opportunities for student athletes to play professional sports overseas upon graduating from high school. Jeremy Tyler did not graduate from high school, so this rule would not have affected him had it been in place at present. Still, the fact that the NCAA is even considering changing this paradigm is newsworthy in and of itself.

If an athlete endorses a product, does it sell? This is the first of several blog posts we intend to write about the process of endorsements by pro athletes.

There is no doubt that corporations benefit when they hire pro athletes to endorse their products. The exposure is priceless when millions (or more) people watch an event in which an athlete is utilizing his sponsor's product. As for the question as to how much help an athlete's endorsement offers to a product's sales, that can only be answered on a case-by-case basis. This article implies that Lance Armstrong's endorsement of these Oakleys may help the company sell them for $400 apiece.

Corporations don't always have a strong process for following up on their endorsement money and tracking actual sales. It could be that these glasses will sell for $4,000 because they are solidly made, available in limited quantities (only 200 pairs are being produced), and have acquired a special status as sought-after by luxury consumers. How much of that aura surrounding the product can be traced back to the athlete's endorsement? It may be nearly impossible to definitively answer that question.

Should you start you pro sports career now, or should you go to college instead? Before long, that choice may be made for you. If collegiate sports spending is unsustainable, what does that mean for future professional athletes?

The Knight Commission recently held its annual gripe session in Miami and more than 75 percent of college presidents believe that the level of college athletic spending is too high, and that something must be done to reign in scholarship costs. That sounds to me like the presidents plan to cut scholarship costs as soon as they can.

What does it mean for kids hoping to pursue professional sports careers if there are fewer scholarships? Only time will tell, but one would think a natural and inevitable consequence is that the level of competition will be diluted at the collegiate level.

If collegiate competition is watered down, what happens to pro sports? Let’s consider a non-revenue sport like collegiate tennis, which has a vibrant professional tour. If scholarships are cut, more high school tennis kids will try to make it on the professional tour. Would that add to the quality of pro tennis? If colleges nationwide eliminate 500 tennis scholarships over the next decade, then how many of those kids will turn pro? More importantly, how many of the few remaining athletes will forgo collegiate tennis entirely, as the entire game is less meaningful? I predict that this is an opportunity for many sports such as tennis to capitalize and launch more professional leagues, teams and organizations, and differentiate their levels of competition. Consider what would happen if the majority of college golf scholarships were eliminated. We already have several “minor league” golf tours, but wouldn’t you expect to see a few more?

The amateur-professional sports distinction, and the blurred line between the two worlds, is a well-documented discussion. I think the line could eventually become more solidified as colleges continue to cut back, which means that college sports’ loss will be pro sports’ gain.

If you are interested in sports law related issues, please contact the sports law firm of Koch & Trushin, P.A.

The seedy underbelly of track and field in the United States is well documented (from Marion Jones to Trevor Graham and more). Now we learn that track and field in China might have some of the same problems and controversies.

Chinese Sprinter Wang Jing has apparently been banned for life after failing a drug test. But that's not all. A new book by a former Chines Olympic official alleges a lengthy history of doping. The training methods discussed in the book are also more than a little questionable:

During training runs Ma would ride alongside his charges, shouting at them from the sidecar of a motorcycle. He has admitted that he berated and sometimes beat his runners if he thought they were being lazy or disobedient.

To say the least, this training technique probably would not go over too well in the United States.

Stop me if you have heard this one before: A successful professional athlete did a poor job managing his finances, and he is now in serious debt.

Professional athletes need to maintain strict control over their finances. They also need someone who assesses their risk and manages their varied investments. I am not talking about a financial adviser, but I am referring to a person who keeps track of everything for the busy athlete who cannot handle his own personal dealings.

The recent fiascos involving former Mets pitcher Livan Hernandez and Celtics forward Antoine Walter are instructive. Hernandez is being sued by his lender for his home in Miami and he is subject to liens from two neighborhood associations, the pool guy and the state of California. This article breaks down Hernandez's financial problems.

As for Walker, he has debts of more than $4 million according to a Boston Globe article. What's most incredible is that Walker has earned about $110 million in his NBA career. Walker has deeper problems as well - he's facing multiple felony counts for passing bad checks.

Continue reading " Who Manages Risk for Athletes? " »

Our friends at the Connecticut Sports Law blog have done a terrific job of covering the tragic story of Jasper Howard, the UConn football player originally from Miami who was murdered on October 19 on campus.

Today, CT Sports Law blogs about a company that is selling unauthorized likenesses of Howard on a t-shirt. The company allegedly states that profits will go to Howard's unborn child, but that claim was deemed sufficiently dubious that the Connecticut Attorney General demanded that the company stop selling the merchandise and threatened a lawsuit.

It's an interesting, although sordid, legal problem. As CT Sports points out, there is already an authorized dealer of licensed Howard merchandise with proceeds to benefit the unborn child. The Connecticut AG said in his press release that the unauthorized shirts are "in violation of state charity and copyright laws."

I can't claim to be an expert on Connecticut charity laws, but the problem is fairly obvious. The seller did not register as a charity, which is probably as easy as filling out a few forms on a web site. As for copyright violations, the press release was too vague to give any insight into which specific copyright laws may have been violated.

With that said, whether a business deal is legal is one question, but whether it is ethical is another matter entirely. The AG himself put it best:

Any attempt to exploit Howard's tragic death is despicable and unconscionable. I will fight anyone seeking to exploit Howard's heartrending tragedy, as well as pursue civil penalties and forfeitures.

Tough to disagree with that sentiment, right? The seller denies that he is exploiting the situation, but he probably could have benefited from consulting legal counsel before moving forward with this plan.

I get a lot of calls and e-mails from basketball players who want to play overseas. What's the best way to get the attention of European, Asian, South American and African professional basketball coaches and teams? How good is the competition over there? What should I do position myself to play overseas basketball when my amateur career is over?

Unfortunately, the answer is complicated. We will explore the best ways to go about finding an overseas team in a later blog post. For now, let's talk about what I think is the absolute wrong way to find a basketball team overseas.

For every Jeremy Tyler, who left high school early to play basketball overseas in Israel, there are a lot more players who wish they could go over there but are not mature enough in their game and off the court to play overseas.

Tyler signed a one-year, $140,000 contract. Apparently he plans to use this league as a jump-start to a higher, more lucrative league next year. Then he'll be ready to jump to the NBA when he's eligible for the draft in 2011 (Remember that you're not draft-eligible in the NBA until one full school year after your high school class graduated - or in Tyler's case, after the class would have graduated).

One has to question the wisdom of Tyler's decision. He is passing up the chance to earn a high school diploma. Here is Tyler's reasoning:

“I left high school early because I felt I could develop my game more by playing professional,” Tyler said.
“Why?”
“Because high school sports wasn't that fun,” said Tyler, 18. “I wasn't getting better. I was developing bad habits. Hopefully here I can develop my skills, and I can show the world I have talent.”

Here's hoping his basketball career works out and he gets drafted in the NBA in 2011. If basketball doesn't work for him, he will lack even the most basic of credentials (a high school diploma) and be virtually unemployable in any career, even minimum wage jobs. This is a short-sighted and narrow-minded decision in my opinion, one that has nothing to do with basketball and everything to do with money.

Does your agent know that you have a Twitter account? Have you discussed with your sports lawyer whether your Twitter feed has the potential to cause legal trouble?

In this era of Twitter, when every athlete has the chance to bypass the media and talk directly to his fans, how many athletes take strong stands? Jets kicker Jay Feely has a Twitter account, and is not afraid to be an athlete who expresses political opinions. In the long run, it's probably great that Feely has a forum to talk in an uncensored manner.

However, the larger issue is to question what impact an athlete can have on his career - and his endorsements - if he fails to strategize his message. I think that very athlete Tweeting about what he had for dinner, praising the fans, or complaining about a long practice is missing a tremendous opportunity. People praise Twitter because it allows the athletes to communicate without a filter.

Being forthright with your fans is a great opportunity, but athletes should keep the larger goal in mind: It's all about exposure and marketing. The time when every athlete could command multiple endorsements is over; companies are extra judicious in screening their potential endorsers and you can be sure that they are checking out your Twitter account before they ink you to a deal.

Continue reading " Should Athletes Take a Political Stand on Twitter? Ask the Agent " »

Endorsements are difficult to procure for professional athletes.

It's a refrain we've heard time and again since the economy went into a nosedive in late 2008. Apparently one company thinks they have a new gimmick that will make it easier for everyone. Brand Affinity Technologies brings athletes and companies together in a streamlined deal-making process for endorsements. While the article in the New York Times contains some bizarre factual errors (such as referring to Cris Carter as a player for the Minnesota Vikings; Carter retired in 2002 and last played for the Vikings in 2001), the concept sounds interesting in principle.

If it takes off, this sounds like an ideal way for athletes to get corporate endorsements. As with any new concept, the problem is in scalability - it requires a lot of athletes and a lot of businesses. If everyone from the mom-and-pop deli to Microsoft sign up on the corporate side, and athletes from Peyton Manning down to Olympic athletes in obscure sports are available on the player side, it should work. One downside is that an executive with the company says "we can change out the talent very quickly," although he does not explain a situation in which he changed out talent (instead, he explains that he tailored a campaign to a specific event, not that he fired an athlete and replaced him with someone else). I am not sure that an agent should be steering his client to endorsement deals that have the tendency to crumble into nothing at the drop of a hat. Ask yourself whether a short-lived endorsement for your client is better than no endorsement at all? These days, until the endorsement climate picks up, the Brand Affinity concept seems to have potential.

Athletes seeking legal representation often think they need a large law firm, or a former athlete to do their legal work. That's not always the case. Here is a wide-ranging interview about sports law, agents, and pro athletes with former NBA star Len Elmore, who is now a lawyer.

Lenmore does not have high praise for large law firms. Although to be fair, Elmore's experience is unique because he ended up working for a law firm in which the managing partner was sent to prison for misusing money to support his lavish lifestyle. Another telling quote is about whether he believes his status as a former pro athlete offers an advantage as an attorney:

I don’t perceive my status as a former college/pro athlete as a particular edge or hindrance. Sure, from a business development perspective, being a former athlete and current TV analyst might offer name recognition and open doors, but I don’t believe I am that intimidating. Maybe my size has an initial intimidating impact on some. Maybe my voice (when I choose to use it that way) and some mannerisms give me a slight advantage, but they also bring out the lawyer competitiveness in adversaries, particularly in trial work.

Elmore clearly has a strong sense of ethics. He says that he gave up his career as a sports agent after five years because "the environment was becoming toxic to my ethics and scruples." He does not elaborate on the specifics of the unethical tactics, but everyone has heard stories of agents with questionable ethics.

Probably the best thing we can glean from this interview is that an athlete seeking representation - either with an attorney for legal matters, or with an agent for contract negotiation and endorsement procurement - should carefully scrutinize the person and firms before entering into a business deal.

If you have questions about how to properly investigate your sports agent, or if you're an athlete looking for a lawyer, feel free to contact sports lawyer Jason B. Wolf at Koch & Trushin, P.A., for more information and a free consultation.

In an era in which athlete endorsements are increasingly difficult to come by, here's a story about a coach who has sponsors knocking at his door, and has refused any athletic endorsements.

Memphis basketball coach Josh Pastner leads the most popular sports program in the city, and has apparently been approached by a number of businesses for endorsements. So far, he is content not to increase his income through endorsements, but to collect the $880,000 in salary instead, and focus on settling into his first-ever head coaching job.

There is nothing to criticize about Pastner declining to chase endorsements. His quote about why he does not want endorsements is interesting:

"I don't want it to be about me," he said. "I thought, 'Hey I haven't coached a game yet. I don't deserve any of those things and if anyone wanted to do endorsements, they should go get the former players, former coaches.' That's my thinking on it. "I feel what's best is for this first year not to do any of that. It's not to say we're not going to do it in the future, but for this year, the whole focus needs to be strictly on Memphis."

In the long run, is this young coach wasting precious capital? I suspect that he has been receiving advice from an agent, although I do not know this for sure. I do know that he is taking a precarious gamble with his career. On the one hand, he must be supremely confident that he will have a great season. If that happens, his price will only skyrocket and he can command more endorsements (both in quantity and price) next year. On the other hand, if Memphis stumbles, or does not distinguish itself, then he may command less next year.

If you're a professional athlete and someone else owns your domain name, you should thank Toronto Raptors player Chris Bosh for getting it back to you. Bosh recently won a case in federal court in which the court ordered that domain names with no connection to the athlete should be returned to the athlete.

Actually, the court ordered about 800 names to specifically be awarded to Bosh and his company. Bosh has agreed to give the names back to the person named. Here is a complete list of the misappropriated athlete domain names.

This is a major victory for pro athletes under the relatively new Anti-Cybersquatting Consumer Protection Act. If someone is holding your domain name as hostage, have your sports attorney contact them and you should get it back in no time.

Remember when former Minnesota Vikings coach Mike Tice got in hot water for ticket scalping? It's a temptation most pro athletes (other than the top earners) have probably thought about every now and then: Sure, you make a nice salary, but wouldn't it be nice to put a few hundred bucks in your pocket by scalping your free ticket allotment?

Recent media reports have listed tickets for the Vikings-Packers Nov. 1 showdown at Lambeau Field at $364, which vastly exceeds face value. Would it be tempting for the players on either team to scalp their tickets? Perhaps it would be a temptation, as the value of these ticket will only increase, unless Brett Favre gets hurt. Pro football players have enough to worry about without trying to pick up extra cash by scalping tickets.

Recently we blogged about the case of a New Zealand Olympic athlete who got exceedingly creative in his attempt to finance his athletic career by launching a brothel. With the Winter Olympics in Vancouver only about five months away, it looks like some American athletes are also getting creative. Fortunately, they are doing nothing that resembles the shady activities of the New Zealand athlete.

This article talks about a number of snowboarders and skiiers who are having difficulty raising money to support their athletic goals. From sporting restaurant logos to paving parking lots in their spare time, athletes are mining any possible revenue source. It's an incredibly difficult endeavor to train as a world class athlete without any money. Even a top-notch agent would not find it easy to procure investments for athletes in so-called minor sports. Still, that doesn't mean pursuing the dream - and hiring an agent to try and gain endorsements - isn't a worthy use of your time and resources.

It's every agent's and athlete's worst-case scenario: You find what seems like a plum spot for your client overseas, but the team fails to pay up. Because the team is not subject to jurisdiction of the courts in the United States, there isn't much the agent or athlete can do to obtain the money which is duly owed.

Attorney and agent Tom McLaughlin has been chasing Greek basketball team Olympiakos for about five years now, and he finally has the chance to get paid. He sued because a couple of his players were not paid by the basketball team, and he did not receive his agent's commission.

He proposed having the federal marshals seize all of the team's assets, but instead it looks as though he will need to settle for a deposition of the team's billionaire owner. Here's hoping he gets paid, and that Olympiakos honors its debt.

Continue reading " Agent Sues Overseas Basketball Team " »

Every sports agent does more than negotiate contracts. Does your agent have your back? Do you use your agent as an advocate who can get your message out there to the right people?

Over the weekend, Jacksonville Jaguars wide receiver Mike Sims-Walker was deactivated for his team's game with the Seahawks because of undisclosed violations of team rules. On Monday, the mystery deepened, because no one would come forward and say what, if anything, Sims-Walker did wrong.

This analysis by the web site Pro Football Talk states that Sims-Walker's agent, Adisa Bakari, did not return a phone call or e-mail seeking comment on the reason for the suspension. Whether Bakari had his reasons for not returning the call or e-mail is not my point; this article is not a criticism of Bakari.

Continue reading " Athletes in Trouble - Should the Agent Comment? " »

An age-old conundrum for professional athletes is the potential for an inherent conflict of interest between the athlete's health and the team's interest. Quite simply, the conflict goes like this: Your long-term health would be better if you sat out for a while after a certain type of injury. The team, on the other hand, may be better off by rushing you back into action.

The recent lawsuit filed by former receiver David Givens against the Tennesse Titans sheds new light on the discussion. Givens alleges that he was kept in the dark about results of a test. He does not allege that he returned to action too soon, but that this lack of information ruined his career.

A potential problem with this lawsuit from the athlete's perspective is that he was signed to a large-dollar contract immediately after the injury. So this story does not quite fit neatly into the standard conflict of interest we mentioned above. It also may become moot if it's determined that Givens should have filed a grievance through the player's association.

Unfortunately, there is no ideal solution for how to avoid this type of thing. As an athlete, you want to prolong your career for as long as possible. Management in theory should want the same thing, but the team generally has a more short-term focus - this year and the next couple of years instead of the 10 years that you're thinking about. The best approach is for the athlete and team to fully disclose any and all results, and discuss a short- and long-term strategy. Only if both sides trust one another can conflicts be avoided.

When the NCAA settled the Andy Oliver dispute about whether high school baseball players were barred from consulting a lawyer in negotiations with professional teams, Oliver's life got a little bit easier, but the problems for high school baseball players may be just beginning.

The NCAA declared Oliver ineligible because when he was a high school senior, his adviser was present during negotiations with the Minnesota Twins. The NCAA has a rule banning high school kids from consulting with agents, attorneys or advisers. Earlier this year, the judge ordered the NCAA to stop enforcing the rule. Now that the case has settled, the order was vacated, which means that the rule can still be enforced. That does not mean the issue is dead.

However, as Baseball America points out in this analysis, the fact that nothing has changed is not a positive development. Think about the logic of this policy: A 17- or 18-year-old high school baseball player needs to make the most important decision of his life, whether to go to college on a baseball scholarship or whether to sign with the professional organization that drafted him. Logic says that he would need qualified legal advice from an expert. All sorts of questions would be going through the family's mind - Is the team's offer fair? How can I get more money from the team? What's best for my baseball career? What's the best financial opportunity? Am I being taken advantage of?

The baseball player is being compelled by the NCAA to make a life-changing decision without being educated about the options. If that's not restraint of trade, I don't know what is.

Continue reading " High School Baseball Players Still Cannot Consult Advisers " »

Let's say you were released, or your contract expired and you signed for much less money. If you have child-support payments, you may need to consider a modification.

Imagine a scenario in which you divorced three or four years ago. You were in the prime of your career, making close to the league maximum. Your wife did not have a job. When you got divorced, you were required to pay alimony, the terms of which were set in accordance with your lucrative income at the time. But now your income dropped substantially and you can no longer pay the required alimony payments dictated by an old divorce settlement agreement.

What should you do?

Continue reading " When an Athlete Loses his Job, Is Child Suport Modified? " »

Is there a new opportunity for American basketball players overseas? The Financial Times reports that a new basketball league is in the works in England. The league ownership would likely consist of the deep-pocketed folks who already own soccer teams in the Premier League, which is the top soccer league. The league would reportedly be backed by former NBA officials.

What does this mean for American basketball players seeking jobs overseas? It's not clear yet, but it seems like there would be more opportunities. FIBA-certified basketball agents would be wise to keep an eye on this developing story to ensure that they are in position to place their clients with the new league when it tips off.

Why should agents pay attention? This quote says it all:

The $25m would enable BBA clubs to pay between five and 10 times the wages paid in the BBL and to market the game in the run-up to the 2012 Olympics.

As they want this league to be up and running before the 2010 Olympics, they would likely launch next season or sooner. This could cause a mass defection of imports to the new league, especially if the salaries are in fact as high as the newspaper reports.

If you're a professional basketball player looking to play ball overseas, please make sure your sports agent is aware of this new development.

For more information on this overseas basketball opportunity, contact Florida-based sports lawyer Jason Wolf.

Here in the United States, athletes have been forced to get creative to fund their Olympic dreams. Overseas, on athlete apparently got a little too creative. Not surprisingly, authorities have clamped down on the New Zealand Olympic athlete who decided to fund his dreams by operating a brothel.

Interestingly, the athlete, Logan Campbell, is threatening to sue the New Zealand Olympic regulators for apparently trying to interfering with his livelihood (actually the article does not state the legal grounds upon which Campbell might sue, but that is the most likely avenue in my opinion). Prostitution is apparently legal in New Zealand, so Campbell must believe that he is doing nothing wrong, even though the governing body believes that it is somewhat unseemly for an Olympian to be promoting prostitution.

A similar lawsuit here in the United States, if these events occurred, could raise interesting questions about Constitutionally protected expression and speech. If the athlete operated the brothel, and it was legal - for instance, if it was located in a county in Nevada which permits prostitution - could the athlete have a cause of action against someone who asked him to shut down his activity? Is prostitution considered free speech if it's legalized? What would happen if the athlete was running a legal business, but one which some segments of the population consider to be offensive? As sponsorship money continues to dry up, maybe we will see someone test these waters.

If you are a professional athlete trying to raise money, consult a sports law attorney such as Koch & Trushin, P.A., before embarking on any significant expenditure of your resources in pursuit of your goal.

Earlier this week, we discussed the Michael Crabtree saga. Last night we got word that Crabtree has finally come to terms with the 49ers.

As usual, the best analysis of the nitty gritty of the deal comes from the National Football Post. What's interesting is that the Post's details seem to back up my assertions in the original post. I wondered who was really advising Crabtree, and whether those people actually had his best interests in mind.

According to the Post, MC Hammer and Deion Sanders were involved in the negotiations; it may be that these two helped bring the parties together in the end. Am I the only one who wonders why a 22-year-old football player was taking contract advice from MC Hammer, and whether Hammer legitimately had the best interests of Crabtree in mind? I guess it's possible that MC Hammer's involvement actually benefited Crabtree, but the entire situation does not sit right with me and does nothing but underscore the importance of a young pro athlete surrounding himself with the right people - and subsequently listening to those people.

You're a professional athlete, so everyone wants your money, right? Even savvy athletes and coaches looking for presumably safe investments can find themselves in dire straits over an investment gone wrong. That's why it can be critical to consult a competent attorney before signing anything involving your money.

Consider the case of Michigan football coach Rich Rodriguez, who invested in condo construction near college campuses as part of a new trend to sell college-themed living to the aging baby boomers. Sounds like a solid investment opportunity for an athlete, right? Well, not so fast. As discussed here, the investment at Virginia Tech's stadium did not go according to plan. A partner allegedly made off with much of the funds, and the investment fell apart.

What really made this a bad investment for Rodriguez is that he was personally sued by the creditors when the deal fell apart. Everyone knew that Rodriguez was a millionaire (coach and athlete salaries are generally public information), but Rodriguez's mistake may have been the "personal guarantee" he signed, apparently putting himself on the hook for the debt.

The bottom line is that if you're a pro athlete, you make a lot of money. You have every right to invest your money in lucrative projects that are not available to most people. Just be wary - and consult a qualified sports attorney to see that your interests are protected.

Let’s say you are a youth sports coach who volunteers hundreds of hours of your time each year to help the kids in your community. Unfortunately, someone sues you. It can happen, and in fact happens all the time.

The recent settlement in the lawsuit filed by Jean Gonzalez in Staten Island, New York, over her son’s alleged injury when he was sliding into second base provides guidance for coaches thinking about protecting themselves from lawsuits. The lawsuit, which settled over the summer for $125,000, alleged negligent coaching because of the use of a stationary base.

The legal basis for the lawsuit appeared to be dubious at the time. The “assumption of risk” doctrine – which essentially means that one assumes the risk of the activity if one enters into said activity knowingly – looked like it would be a solid defense. We do not know exactly what led to the settlement because any settlement negotiations are confidential, but the youth baseball officials must have felt that they had significant legal exposure if they were willing to settle for such a large amount.

Continue reading " Sports Law Trends - Youth Sports Coaches can be Sued " »

Is your sports agent creative in contract negotiations? Incentives in athlete and coach contracts can make or break a deal. The story of Celtics forward Glen “Big Baby” Davis’s unique contract which contains incentives for his weight, has been well documented. Apparently, the incentives worked – not only does Davis look like he lost weight, but he’ll also earn a little extra money this season.

People joke about Davis being a fat guy, but the truth is that his agent and team were smart to negotiate this incentive. It’s easy for an agent and a team to negotiate a standard contract with the boilerplate incentives based on performance (when allowed by the league). It take more work to negotiate a contract with incentives which are attainable, unique, and most importantly beneficial to everyone. Obviously the Celtics benefit by having a slimmed-down Davis while the player benefits by earning the money and also being a little healthier. (Take a look at about the creative sports contract incentives for basketball coaches in North Carolina).

Maybe you’re an athlete looking for an agent. You hear about a player holding out, and wonder to yourself: Who is advising this guy? Michael Crabtree’s situation in San Francisco is a prime example in which a lot of people might be wondering whether Crabtree is receiving bad advice.

Crabtree is the only top unsigned player from the 2009 NFL Draft. He’s missing out on untold millions of dollars in salary – not to mention endorsements that could be coming his way. His agent, Eugene Parker, must have a strategy in mind, right? Parker is a veteran NFL agent who is well respected in this business.

At some point, however, the athlete has to realize that the agent represents the athlete. The athlete is in charge. Just like an attorney makes legal decisions but ultimately is not the boss of his client, the agent should not direct the athlete. We don’t know whether Crabtree’s strategy will pay off in the end. We do know that a lot of people are wondering whether Crabtree knows who is running the show. I'm not criticizing Parker; I don't know him. I'm not criticizing Crabtree either. But eventually, a holding out athlete has to take a long, hard look at his situation and recognize that only he knows what is best for his career - and not playing is rarely beneficial to an athlete's career.

When former major league baseball player and manager Bobby Valentine signed with a sports agency last week, a lot of people were wondering why he needed an agent. Valentine just wrapped up a six-year stint managing the Chiba Lotte Marines, a Japanese baseball team, and has already agreed to return to ESPN as a broadcaster. Valentine previously worked for the World Wide Leader in 2003.

This was reportedly the first time that Valentine felt the need to have representation. Why the change of heart? Simply put, if you’re an athlete – or even a retired athlete - looking to maximize your earnings, you should consider hiring someone to look out for you. While Valentine is busy appearing on ESPN’s family of networks, his agents can devote themselves to exploring endorsements, marketing and cross-promotional opportunities.

Valentine is savvy. He is 59 years old, and his career accomplishments already are impressive – he managed the Mets to a World Series; he revitalized baseball in the industrial Tokyo suburb of Chiba, Japan, leading the Marines to a Japan Series victory in 2005; and won more than 500 games as a major league manager. He realizes that he needs to capitalize on his global success, and that’s why he signed with an agent.