The more that I read this thread the more my skin crawls and my stomach turns. Now it appears that this "agent" isn't even affiliated with an established, reputable agency and has no experience in this field. How much larger must the red flag be?
This is not my area of expertise, but there is an area of law called Sports Law and there is somewhat of an industry "standard" player's representation (agents) contract. I was able to track one down on the web, and although the one that I copied is from England, I believe that it is fairly representative of what one should reasonably expect here in the US as well.
The other thing that everyone must realize is that there are not too many Michael Jordans, or Maria Sharapovas in the world. Major endorsements, outside of the pool industry will, most likely, be far and few between. Sorry!
Although I only know what I have read here on AZ, there seems to be several items that are WAY out of line here.
1) The "agent" is not even affiliated with a reputable, or any, agency.
2) A reputable agency should also provides the "player" with legal, financial and tax advice, among other services for the benefit of the player. Is this person able and willing to provide these professional services?
3) As with all contracts, potential conflicts of interest are warning signs that the contract should be avoided. If prior relationships exists between your agent and other involved parties extreme caution and avoidance is highly recommended.
4) Since most of the "player" contracts involve athletes that are salaried, and salary negotiations are part of the "standard" contract, I'm not sure how to reconcile or compensate for the fact that the pool players are not salaried, but must win their paychecks. The service of salary negotiation is not provided.
5) Regardless, the agent's percentages seem excessive compared to those in the example below.
6) Again, this appears to be another example of someone trying to take total advantage of the hard work and skills of the players in order to do nothing more than establish themselves.
I've said this before and I'll say it again, without the players banding together to hire a very experienced sports entertainment attorney and form a "players association", or "players union" to protect them from being taken advantage of, they will be subjected to many situations that they will simply not be prepared to deal with.
Nothing contained in this post is to be considered legal advice.
EXAMPLE:
Standard Representation Agreement
This agreement is made on this 20th day of December 2001 by and between ------ ("Player") and Paragon Sports Group, Inc. / PSG ("Agent").
Player and Agent agree as follows:
1. Representation
Player hereby retains PSG to act as player's sole and exclusive
representative for the next twenty-four (24) months to represent, advise and
counsel Player in all contracts entered into with professional football/soccer
clubs throughout the world and in all business affairs related to Player's
status as a professional football/soccer player, including but not limited to
endorsements, and promotional contracts throughout the world.
2. Compensation for Services
PSG shall receive a fee of ten percent (10%) of the compensation, which
includes salary and signing bonuses, received by player from any contract
entered into with any professional football/soccer club throughout the world,
and a fee of twenty percent (20%) of the endorsement and promotional
compensation received by Player from any contract throughout the world related
to the Player's status as a professional football/soccer player in which
negotiations, advisement or counseling for such contracts are begun or completed
over the next twenty-four (24) months. All fees are to be paid in full within
the term of this contract.
All fees shall be earned and due at the time of execution of any
contract entered into by Player. Player shall direct the football/soccer club,
sponsor or other organization who is party to any contract with Player to make
payment of fees directly to PSG at the time of execution of any contract with
Player.
3. General Terms
(A) Player shall have final approval of all contractual terms and PSG
cannot enter in to any contract without Player's approval.
(B) Player hereby warrants that Player is free to enter into this
agreement and that Player is not currently represented by or under contract for
representation with any other party.
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(C) Player acknowledges that PSG may engage professionals, including
attorneys, accountants and other licensed agents to fulfill certain terms of the
agreement and that PSG may assign the proceeds derived from this agreement in
PSG's sole discretion.
(D) This agreement shall be construed and interpreted according to
English Law and PSG shall have the right to enforce this agreement in any
country, territory, state or other municipality that PSG exclusively deems
appropriate. Any and all disputes, controversies, or claims arising between
Player and PSG under this agreement shall be settled by arbitration in the City
of London pursuant to the laws of the International Chamber of Commerce.
(E) This agreement may be executed via facsimile and in counterpart,
and a copy of the executed agreement shall serve as an original.
Agreed to:
Player: /s/ Shep Messing: /s/ Shep Messing
--------------- ----------------------------
Chairman & CEO
Paragon Sports Group, Inc.
