Sports Agents Under Federal Scrutiny: What Student Athletes and Parents Need to Know Before Signing

federal regulators are taking a closer look at agent conduct on university campuses

FEDERAL TRADE COMMISSION – Parents and student athletes considering opportunities in college athletics and beyond are being urged to proceed with caution when approached by sports agents, as federal regulators take a closer look at agent conduct on university campuses.

According to information released by the Federal Trade Commission, signing with a sports agent can be an important step for athletes hoping to secure endorsement deals during college or pursue professional sports careers.

However, the process carries legal and financial implications governed by the Sports Agent Responsibility and Trust Act, commonly known as SPARTA. The law requires agents to provide clear, written contracts outlining the terms of representation and prohibits false or misleading statements or the use of illegal gifts to entice athletes into agreements.

As part of an ongoing inquiry, the FTC has sent letters to twenty universities seeking information about sports agents recruiting student athletes. The agency is asking whether agents are providing proper written contracts, notifying schools within 72 hours of a contract being signed or before an athlete’s next eligible competition, and complying with restrictions on recruitment practices.

The FTC is also examining whether agents have made unrealistic promises about endorsement earnings, misrepresented their past clients, or offered improper benefits to athletes or their families.

Federal officials are encouraging student athletes to be proactive if they are considering signing an agency contract. Athletes are advised to notify their schools as soon as they hire an agent, even though agents are legally required to do so themselves.

Seeking guidance from trusted family members or friends can also help athletes understand contract terms, confirm that required disclosures have been made, and maintain accurate records.

The FTC is also asking athletes and families to report suspected misconduct by sports agents. Individuals who believe an agent has violated the law are encouraged to share their experiences with the agency, with the option to submit reports anonymously.

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