Do Sports Agents Corrupt the Sports Entertainment Industry?

March 9, 2006 Project Ren

Do Sports Agents corrupt the sports entertainment industry?

The sports agents and the agencies they work for have become one of the most intriguing professions to develop as the sports entertainment grows. The sports agent industry has been glamorized by motion pictures, television, and journalistic accounts. These accounts have drawn many to the profession. With development of both the sports industry and the athlete agent agencies, many ideas about the sports agents have evolved. Many questions have risen concerning the way athlete agents conduct there business. To have a complete understanding of whether or not sports agents, also known as athlete agents, corrupt the sports industry one must examine criminal, ethical, and agent qualification issues. Understand the history of sports agent business, including the legal foundations and what agents actually do. One other critical point to examine would be agents influence on student athletes. Many agents violate principles of amateurism, playing a sport just for the for the love of the game. One must look at the principles of amateurism and how they contribute to unethical activities conducted by agents, and student athletes. Athlete agents have many controversial issues surrounding their profession. Not all of these athlete agents are these plotting sharks out for ever dollar they can grab. Athlete agents have many positive aspects, where it benefits the athlete to have a athlete agent.

For one to develop a keen sense of the controversy that surrounds the athlete agencies one must first examine the history and background of the industry. Do not be fooled the sports agent profession is not a new one. Within the last couple of decades many have been drawn to the world of sports agents through the thought of fast cash, flashy cars, and the thought of people being behind the scenes of the most successful athletes. What is new in the sports agent profession is the high finance and intense competition that has evolved from the profession. The sports agent profession dates back to the early as the 1920's. Athlete agents have in the early part of the century has acted just as adivisors to athletes, who would negotiate contracts for endorsements, and advise athletes where to invest their money ( Davis, 9) During the 1960's the number of sports agents increased and individuals from diverse backgrounds and professions and the industry. Agents would use techniques such as hold out techniques to negotiate an athletes contract. Literally, an athlete would "hold out" from playing with the team until a satisfactory contract was completed. (Davis, 9) Although the sports agent industry was not so new at the time, even in the mid 60's it was still conspicuous to use sports agents. These events were so jaw dropping that an athlete with an agent would even receive coverage from TIME magazine. ( Davis ,10) There was a negative view on agents, agents were viewed sometimes as people unqualified hanging around looking for a quick buck. The development of sports agents as a recognized professional has by no means has been smooth. One event that proves this theory was when legendary coach Vince Lombardi, coach of the Green Bay Packers, refused to sign a player. "When it was time for Jim Ringo's contract to be negotiated, Ringo came in to the office with a gentleman wearing a suit. When Lombardi asked the player to identify the gentleman, Ringo responded that he had come to help in the contract negotiation. The story has it that Lombardi excused himself, stepped into the next room, and made a phone call. When he returned he informed Ringo that he was negotiating with the wrong team because he had just been traded to Philadelphia." ( Davis 10) As one can see that even during the sixties a very liberal time, that sports agents were not very welcomed in to the sports world. Many coaches, and owners of teams thought as athlete agents as a shark in a suit with no knowledge of the industry just in it for a fast buck. Obviously the sports agents profession has come along way from the 60's to be excepted by management. The evolution of the sports agent profession is not incidental , and did not happen by luck. Several dramatic events that happened during the past century has given athlete agents the prominent position they now hold in the industry. The first event was the demise of reserve and option clauses in standard player contracts through the early 1970's. These clauses bound athletes to teams in perpetuity without an opportunity to have their vontracts affected by open market bidding. Courts and arbitrators began to deliver ruling that invalidated the perpetual nature of these clauses. Many players argued that these clauses constituted improper restraints of trade in that they limited players ability to market their services freely. Mackey V. National Football League was one court hearing where it constituted that there was unreasonable restraint of trade on players' talents. (Davis 11) This gave players more bargaining power. Another factor that led to agents industry success was when sports leagues started to merge together. Newly created leagues in football, hockey, and basketball gave athletes almost a hundred thousand dollar bonus. While new leagues were created unions were formed fighting for more money, and players rights. With all this new money coming in players needed to be more conscious of their taxes. Players started to higher professional help to help with their taxes. Hiring even more professional help made it more acceptable to have a sports agent, who was in fact professional help. In addition, with more media involvement, players popularity increased, along with commercial involvement, including sports endorsements. With all these changes only within several years players needed agents to protect them. Whether it was to negotiate a contract, or to make sure athletes aren't being taking advantage of. With these couple of years from about mid 70's to the mid 80's agents have gained more power, more respect, and more responsibilities.

With the increase of responsibilities given to sports agents, and the power agents now hold over the industry, many practices started to occur with in the industry, good and bad. To further examine ethical practices, first one is to look at the specifics of what an agent athlete does. Agents attract clients primarily by performing valuable services for athletes who are enmeshed in increasingly complex business activities on and off the field. Agents provide a level of parity in negotiations between athletes and clubs or other entities for whom athletes have contracted to perform. Management representatives who represent sports