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The NCAA's Regulations Related to the Use of Agents in the Sport of Baseball: Are the Rules Detrimental to the Best Interest of the Amateur Athlete?

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The NCAA's Regulations Related to the Use of Agents in the Sport of Baseball: Are the Rules Detrimental to the Best Interest of the Amateur Athlete? Vanderbilt Journal of Entertainment & Technology Law Volume 7 Issue 2 Issue 2 - Spring 2005 Article 2 2005 The NCAA's Regulations Related to the Use of Agents in the Sport of Baseball: Are the Rules Detrimental to the Best Interest of the Amateur Athlete? Richard T. Karcher Follow this and additional works at: https://scholarship.law.vanderbilt.edu/jetlaw Part of the Entertainment, Arts, and Sports Law Commons Recommended Citation Richard T. Karcher, The NCAA's Regulations Related to the Use of Agents in the Sport of Baseball: Are the Rules Detrimental to the Best Interest of the Amateur Athlete?, 7 Vanderbilt Journal of Entertainment and Technology Law 215 (2020) Available at: https://scholarship.law.vanderbilt.edu/jetlaw/vol7/iss2/2 This Article is brought to you for free and open access by Scholarship@Vanderbilt Law. It has been accepted for inclusion in Vanderbilt Journal of Entertainment & Technology Law by an authorized editor of Scholarship@Vanderbilt Law. For more information, please contact [email protected]. The NCAA's Regulations Related to the Use of Agents in the Sport of Baseball: Are the Rules Detrimental to the Best Interest of the Amateur Athlete? By Richard T. Karcher* When one considers what a sports visions, an amateur athlete is prohibited from agent does, he or she often recalls the movie retaining anyone, including a competent law- Jerry Maguire, in which Tom Cruise hustles yer or agent, to represent him or her in the prospective clients and does whatever it takes negotiation of a professional sports contract. to keep or acquire a client, even if it means This is otherwise known as the "no agent stealing a client from a competitor. Of course, rule." According to the NCAA, these regula- this reprehen- tions are necessary to promote and ensure sible conduct only takes place among "Sports agents have gained sports agents, the reputation of corrupt and not in other in- dustries, right? "unscrupulous" actors who Sports agents have gained take advantage of amateur the reputation of being cor- and professional athletes..." rupt and "un- scrupulous" actors who 3 take advantage of amateur and professional amateurism in intercollegiate athletics. athletes in favor of their own proprietary self- When looking at these regulations, the interest. Much of this negative sentiment unavoidable question arises: who is the NCAA stems from highly publicized cases involving trying to protect? If the NCAA seeks to pro- sports agents engaged in illegal conduct.' tect the amateur athlete, it would seemingly The crimes committed by a few "bad be in the athlete's best interest to have com- apples" prompted the enactment of numer- petent representation to deal with professional ous, comprehensive state statutes and govern- sports organizations and the complex business ing rules established by professional sports and legal issues that surround the world of players unions and collegiate athletic govern- professional sports. Protecting the athlete ing bodies.2 For example, the National Colle- from corrupt, unscrupulous sports agents is giate Athletic Association (NCAA) has enacted an understandable and noble objective. But a strict set of bylaws regulating the use of even if the NCAA regulations play a role in agents by amateur athletes. Among these pro- deterring corrupt and unscrupulous conduct SPORTS on the part of agents (a notion that is highly the agency agreement is applicable to all sports suspect), the rules are detrimental to the ath- unless the contract specifically states that it only lete if he is precluded from retaining a compe- applies to a particular sport or sports.9 Thus, tent agent or lawyer to advocate on his behalf.4 an athlete who agrees to representation by an First, this Article will discuss the NCAA agent is ineligible to participate in any sport at regulations applicable to all sports regarding the any NCAA institution. ° However, if the ath- use of agents by amateur athletes. Next, this lete and the agent limit their agreement to a Article will discuss (i) the mechanics of the an- particular sport or sports, then the athlete nual Major League Baseball draft, (ii) the fac- would be ineligible to participate only in such tors that contribute to the necessity and desire sport or sports.1 for amateur baseball players to retain a compe- The prohibition set forth in Bylaw 12.3.1 tent agent or lawyer before they have extin- is not limited to agreements with respect to pro- guished their NCAA eligibility, and (iii) how the fessional sports negotiations by an agent on be- NCAA regulations are detrimental to both half of an athlete that take place while the ath- drafted and draft-eligible amateur baseball play- lete is enrolled at the institution or has eligibil- ers. Finally, this Article will discuss how the ity remaining in that sport. An athlete shall also NCAA should revise its regulations to better be ineligible if he or she agrees that the agent serve the amateur athlete in the sport of base- will represent him or her in negotiations with ball without destroying the distinction between professional sports teams that are to take place amateur and professional sports. subsequent to the athlete's completion of eligi- 2 bility in that sport. 1 It is important to note that the NCAA I. The NCAA Regulations Regard- regulations prohibiting amateur athletes from ing Use of Agents agreeing to representation by an agent apply Section 12.3 of Article 12 (Amateurism) not only to collegiate athletes already enrolled of the NCAA Bylaws governs the use of agents. in NCAA institutions, but also to high school The guiding principle of Article 12 is that only students or graduates prior to collegiate enroll- amateur student-athletes are eligible for partici- ment.' 3 Thus, even high school students may pation in intercollegiate athletics.5 According be declared ineligible to participate in collegiate to the NCAA, "[m]ember institutions' athletics sports by the NCAA before they even sign a programs are designed to be an integral part of scholarship or Letter of Intent to attend an the educational program [and] [tihe student- NCAA institution. athlete is considered an integral part of the stu- dent body, thus maintaining a clear line of de- B. Benefits from Prospective marcation between collegiate athletics and pro- Agents fessional sports."6 The NCAA regulations also The NCAA has instituted strict regula- indicate that "an amateur student-athlete is one tions with respect to amateur athletes receiv- who engages in a particular sport for the edu- ing any benefits, financial or otherwise, from cational, physical, mental and social benefits de- agents. The regulations even prohibit the rived therefrom, and for whom participation athlete's friends or relatives from accepting such in that sport is an avocation."7 benefits. NCAA Bylaw 12.3.1.2, also known as the "no benefits rule," provides as follows: A. Agreements with Agents The NCAA regulations prohibit amateur An individual shall be ineligible per By- athletes from agreeing to representation by an law 12.3.1 if he or she (or his or her rela- agent. Bylaw 12.3.1, often referred to as the tives or friends) accepts transportation "no agent rule," states that "[a]n individual shall or other benefits from: be ineligible for participation in an intercolle- (a) Any person who represents giate sport if he or she has agreed (orally or in any individual in the marketing writing) to be represented by an agent for the of his or her athletics ability. The purpose of marketing his or her athletics abil- receipt of such expenses consti- ity or reputation in that sport."' 8 Furthermore, tutes compensation based on Spring 2005 216 The NCAA's Regulations Related to the Use of Agents in the Sport of Baseball athletics skill and is an extra ben- ing discussions of a contract offer between an efit not available to the student athlete and a professional sports organization body in general; or or making any contact with a professional or- (b) An agent, even if the agent ganization on behalf of the athlete.2' Accord- has indicated that he or she has ing to the NCAA, "[a] lawyer's presence dur- no interest in representing the ing such discussions is considered representa- student-athlete in the marketing tion by an agent." 22 Similar to the regulations of his or her athletics ability or regarding entering agreements with agents and reputation and does not repre- receiving benefits, these rules also apply to high 23 sent individuals in the student- school players prior to college enrollment. athlete's sport. 4 In 1974, the members of the NCAA de- termined that student-athletes might need le- These regulations apply to the receipt of ben- gal advice to assist them in evaluating and un- efits by any "individual." They apply not only derstanding a professional sports contract of- to collegiate athletes already enrolled in NCAA fered while they still had collegiate sports eligi- institutions, but they also apply to high school bility remaining. 24 The NCAA decided that, 5 students or graduates prior to enrollment.1 during consideration of such a proposal, a stu- For example, an amateur athlete's accep- dent-athlete "may seek the advice of a lawyer tance of automobile transportation from the relative to future negotiations or discussion of athlete's campus to a prospective agent's office the individual's professional aspirations, so long to discuss services the agent could provide to as the lawyer does not become actively involved the athlete upon signing a professional contract in negotiations with the professional team or is an improper. 6 In addition, a football agent organization. ' 25 According to the NCAA, "once cannot provide transportation to a friend of a the student decides to have legal counsel con- member of the local Division I "The crimes committed by a few college's base- 'bad ball team.
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