Sports Agents on Trial?
When Aroldis Chapman’s former sports agent sued his new agent this week, the lawsuit threatened to put the entire system of sports law and sports agent representation on trial. I mean this in a literal and figurative sense – the unsavory practices of the business of sports agents may be brought to light publicly, as well as in the courtroom.
The facts of the lawsuit are undisputed. Chapman, a recent Cuban defector who is considered a sure-fire superstar, signed with Athletes Premier International and Edwin Mejia after his defection. He became disenchanted, and subsequently signed with a more established agency, Hendricks Sports Management. So API and Mejia sued Hendricks, alleging tortious interference with their business relationship and also unjust enrichment.
This article from the Associated Press contains a hint that if this matter goes all the way to trial and up the chain of appellate courts in Massachusetts, the entire realm of player representation could be on trial:
Stealing clients is a longtime and lucrative practice among some sports agents, who can earn up to 5 percent of salaries reaching into the hundreds of millions of dollars.
This is probably an accurate statement that most people who aren’t in the sports law or sports agent business don’t understand or don’t realize. A former college baseball teammate of mine who is now a high-ranking executive in the front office of an American League team told me that it happens every day in baseball and he has never seen such a switch result in litigation. Sports law experts apparently agree, as the article notes:
"Generally speaking, players can change agents at their discretion," said Michael McCann, a sports law professor at the Vermont Law School. "There is certainly evidence of agents poaching clients (in cases) that don't result in litigation. Maybe it's unethical; maybe it's wrong; but it happens."
In most industries, if you sign a contract, you are bound by the contract. As we blogged earlier, it’s not always that way among college coaches. Still, that does not mean that an athlete, coach or even an agent should give up his right to pursue justice because standard business practice in his industry involves breaching contract. While the industry may view contracts as not worth the paper they are printed on, courts will often see things differently. Anyone who thinks he has suffered damages from a breached contract or because a competitor has interfered with his work should consult a qualified sports lawyer for legal advice.
