Yet Another Sports Agent Sponsorship Scam
The sports agent sponsorship scam which recently came to light in England illustrates yet again why all athletes should consult their sports lawyer before handing over their hard earned money.
In the latest scam, a British sports marketing agency asked for money up front from athletes in exchange for the promise of procuring endorsements. Even Andrew Steele, one of the athletes who was ripped off, acknowledged that he thought being forced to pay upfront was a red flag:
“I asked: 'why does it have to be up front, why can't I give it once the sponsorship has been secured?' They said that if the money didn't materialise then I would get a refund, so I thought I'd go for it.
Steele said his fears were lessened because the agent employed several prominent former athletes. This seems to be a common practice among sports marketing agents who are operating scams. They pay athletes to recruit other athletes. Because pro athletes tend to stick together, they feel better when one of their own is on board.
The bottom line here is that any time a sports agent request money up front, the athlete should run quickly in the opposite direction. While there may be certain hourly and flat-fee arrangement for certain types of sports agency duties, this type scenario is rare, and should only be entered into cautiously and with someone trustworthy. When in doubt, the athlete should consult a sports lawyer.
