The most important contract for a sports agent is the contract between the player and the agent, also known as the standard representation agreement. This agreement sets out the conditions for the agent`s representation, including fees, scope of representation, duration of representation, payment planning and how disputes between the agent and the player are to be handled. Before diving into the flesh of the contract, it is important to determine from the beginning who the contracting parties are, namely the player and the agent. It is also worth taking into account the fact that the athlete loses his “amateur” status and his right at the college level by concluding this contract with the agent. This is especially important for players who are still eligible for the sport at university. For example, an agent who works on the player contract and an agent who takes care of marketing. These exclusive rights must be defined in order to avoid confusion as to the responsibilities of the agent and, above all, what they should be paid for. Exclusivity should also be taken into account with regard to the site. For example, a Japanese baseball player might want to have three agents: one to settle his contracts with players around the world; someone who is marketing in the United States; and someone who does their marketing in Asia.
A broad representation clause narrowly defining the agent`s exclusive rights is best for the agent. Now that the agent`s services are delineated, it is important to indicate how the agent is to be paid. Each of the major U.S. professional sports has an industry standard or agent regulation that determines the amount of the agent`s fee for the successful negotiation of a player`s contract. This tax represents a percentage of the value of the player`s contract. Agent fees for secure referrals and endorsements are much higher, usually between 15% and 25%. In this clause, it is important to include that the agent is paid for each contract that is essentially negotiated during the term of the contract. This ensures that an agent is entitled to his fees, even if he is dismissed before the end of the operation. In addition, it is in the best interest of the agent to define what represents the sponsorship revenue and how the agent will receive a portion of that revenue as a royalty. Athletes are increasingly being paid in equity and other illiquid measures, which creates a difficulty in determining an agent`s fees if they are not explicitly stated in the representation agreement. The last major clause in the agreement is on expenditure. In particular, if the player, agent or a combination of both have to pay for expenses such as equipment, service provider and travel..
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