Professional Documents
Culture Documents
08/26/2014
CHAPTER 1
SPORTS AGENCY
Sports Agents
*Who is a sports agent?
Advocate, marketer, and negotiator
Not just for athletes, anyone in sports context
*Qualifications
Law Degree? Not necessarily but better sometimes hinders them
Dictated by Big Four says who can represent the players and the
coaches in their league
Agency Law
*Principal Agent Relationship
Contractor-independent contractor v. employer-employee
Are you telling them how/when? V. Dictating how and when but they
do it.
Typically contractor-independent contractor with sports agent
*Types
Express Agency- you are my agent and I will set forth what I want in
writing up a contract.
Implied Agency- appears that people are acting on behalf of others.
Ex: boosters
*Liability
Vicarious Liability- whatever the agent does the represented will be
liable for what has been agreed upon.
Fully Disclosed- party knows that the person is a representative of a
specific person.
Partially Disclosed-Agent is responsible until disclosed
Undisclosed Agency- Agent will be bound to contract
Agency History and Business
*History
Red Grange (1925)
Flourish in 1960s
-Billy Cannon, Vince Lombardi
Mergers in 1990s- allowed them to specialize in sports and types of
players
Egregious actions*Business
One and done rule- Jason does not like it because it creates
bringing in a kid and having him play and not valuing the college
education but if wanting to go pro then should be able to go ASAP
but some coaches will accept it. Johnny thought he would go pro
after one year but actually took 3 years.
The big 5 conferences have the ability to make their own rules.
$2000 stipend to kids to make up the difference for tuition and the
big 5 could afford it so they would be likely to say yes.
Basketball, Football fully funded
11.7 scholarships for a 35 roster sport so they spread it out
Will title 9 ever change? Does not think it will.
Student athletes and tweets is not acceptable
Restrictions before on what could be sent to a recruit, now as
long as it is not larger than sheet of paper its fair game
Eliminate what rule? Her-monitor texting Him-prospects on the
road
Can not use a student athletes likeness or name to make a
profit: Boganation
Liaison between NCAA and institution
Current Footprint
Divisions
Division I-A (Football Bowl Series)
*16 sports- male/mixed v. female
*Home football games and opponents (neutral sites)
*Attendance requirements- 3 year enrolling
*129 schools
*if do not have football then can not vote on football related issuesMarquette, Xavier, Pepperdine
Scholarships
*One year- NCAA Scholarships- renewable on annual basis, full and
partial depends on sport, unlikely to lose because of performance in sport
Boosters
*Representatives of Athletic Interests- Conflict of interest?
*Extra Benefit Rule- From coaches, alumni or others, Ex: Miami,
repeat violators given severe sanctions or the death penalty
* Death penalty- can not play for period of time
NCAA Criticism
*Non-profit organization- $700M in annual revenue
*Unpaid labor force- student athletes, multi-million salaries of coaches
*Inconsistent and Unequal Punishment- depends on who commits it,
suspend Ohio State Players after bowl games
*Win At All Costs Attitude- includes cheating and other rule violations,
is NOT in line with educational mission
CHAPTER 2
SPORTS CONTRACTS
Elements
1. Offer
2. Acceptance- you can accept, reject, counteroffer (rejection and
then roles reverse), or nothing
3. Consideration- price of the promise, salary in exchange for work (in
LA this is not required for a contract to be valid)
4. Legal purpose- illegal then void, illegal per se then
adhesion(forced), unconscionable (took advantage), or one-sided
*NHL Two-way Contract- NHL pays but less if playing for AHL team.
*NHL One-way Contract- paid same amount regardless if playing for
NHL or AHL.
*NBA Ten-day contract- 10 days or 3 games whichever is last. Limit 2
in one season, must sign for rest of season after, undrafted under looked
youngsters.
*Reserve Clause- club retained rights even at the expiration of
contract unless traded or released at teams option. Players permanently
bound, reduced player bargaining power, restricted salaries and gave
owners power. In every MLB contract starting in 1880s and no longer exist
in Big Four.
*Termination Clause- when can you be let go.
*At-Will v. Term Contract- can fire for any reason or no reason unless
discrimination and term is bound to be employed until end of term.
Completion, mutual consent/rescission, breach.
*Cause- the reason for termination.
*Employers reserve right to terminate in order to protect image from
misconduct by employees. Usually receive a settlement.
*Just cause defined in 14 subsections
*Examples
-Kelvin Sampson- paid $750K to leave Indiana Univ.
-Bruce Pearl- Un of Tennessee BB Coach, he lied to NCAA over
recruiting violations, terminated contract but did not fire but let him coach at
will.
-Jim Tressel- knew players violated NCAA rules, NCAA sent Notice of
Allegations, repeat offender, resigned.
-Ron Prince- Kansas State FB, secret contract that if fired then they
would pay
-Jim OBrien- Ohio St. coach, loaned a Serbian recruit money to go
home, could be fired for material breach, debate on whether he knew is was
ineligible, court ruled the violation was not a material breach, could not
terminate for cause, obligated to pay liquidated damages
*Hazardous Activity Clause- Mitigate changes of injury outside of
scope of game, Modify financial obligations if player injured as a result of
involvement in hazardous activity. Ex: motorcycle riding or moped
*Morals Clause- SPK and contracts with individual teams. Conduct
that does not conform to standards of morality and fair playlaws, or that is
prejudicial or detrimental to the Association. Very subjective. Tiger woodscheating, Phelps- marijuana
*Reverse Morals Clause- Enron park now minute maid park.
-During participation
foreseeable the injury, greater potential for liability
During Transportation
During Training Camps-Usually involve whether or not medical
staff was available. Can lead to criminal charges
As Spectators- in addition to flying objects, damage of standing too
close, ignoring signs.
Malpractice- Negligence on behalf of a sports medical practitioner.
o Duty to player or team?- NFL trainers
Locality Rule- compare doctors to others in same geographical area
or specialty.
Medical Review Panel- if you think you have a case then the panel
will review (5 doctors and 1 attorney) doctor has liability around
500K
Concussions- suicides related to brain trauma- Junior Seau
Leagues
o MLB 7 day disabled list then pass test
o NFL cleared by doctors not associated with team.
Troy Polamalu- I just lie to them.
Infectious Disease- maintain proper hygiene in the locker or during
sports contests.
o May be liable for failure to maintain proper hygiene.
o Magic Johnson- has HIV, then the new rule was you must
wear gloves but doctor did not use gloves with open would.
Workers Compensation- Insurance required by the state to provide
benefits to employees who are injured on the job.
o Student-Athletes- Not employees, so no WC
NCAA established fund-Indemnity not liability relief
*Intentional Torts:
o
More
o
o
*Products Liability
Focus on defect
Defect in design
Defect in manufacturing process
Defect in warning failure to properly warn of potential dangers
o Aluminum bats (ball came off to fast), helmets, exercise or
weight equipment- in sports context.
*Strict Liability-Absolute liability or liability without fault
liable for any injury that is caused due the following:
o ultra-hazardous or unreasonably dangerous activity: live
animal mascot, firework display, cannons
*Professional Sports
Chicago Black Sox- 1919 8 players received lifetime bans for
playing poorly to influence outcome
Pete Rose-Permanent ineligibility after investigation concluded he
had bet on Red games while manager
Art Schlichter- Gambling Addiction
Tim Donaghy- NBA referee pled guilty to betting on NBA games
*Crimes Involving Animals
Cruelty to Animalso Cockfighting-Louisiana last state to make illegal
o Dog fighting-Felony in 48 of 50 states
o Michael Vick
*Sports Agents Crimes
SPARTA and State Legislation
Human Trafficking- conspiracy to commit alien smuggling for profit
*Crimes Against the Government
Racketeer Influenced and Corrupt Organization Act (RICO)Operating an illegal business or scheme in order to make profit
Wire and Mail Fraud-Wire Communications Act (1961)
criminal gambling behavior which uses wire communication to place
bets across state lines
Constitutional Law
Pat-Down Searches
o Fourth Amendment protection against unreasonable searches
and seizures
Stark v. Seattle Seahawks- private conduct may be considered if
the deprivation of a federal right is fairly attributable to the state.
Not a public function required to be a function traditionally
reserved to the exclusive prerogative of government
You can not be legally patted down unless you are entering a
private place.
Aggravated Kidnapping
All other charges can be filed by a prosecutor signing a bill of
information, which is merely a charging document that accuses a defendant.
Ethically, prosecutors have a duty not to file charges which are not
supported by probable cause.
**Even when charges dont require indictment by GJ, prosecutors
often choose to bring controversial, politically charged, or high profile cases
with media attention to the Grand Jury.**
10 out of 12 jury count unless it is a first degree murder.
6 person juries on misdemeanor and must be unanimous.