Blog Entry

Some NFL agents already starting to panic

Posted on: March 25, 2011 5:13 pm
 

So this is the scenario happening now with dozens of younger NFL agents, if not a lot more, across the sport.

Some time ago, college player signs with agent. Transaction is legal.

Agent then pays for players' expenses including purchase of a car, payment of rent or mortage and monthly allowance of cash. All legal (if not offered as inducement) and has been done for years.

Agreement is that agent will receive these monies back once player is drafted and contract is signed with team (or thereabouts).

Except agent, because he or she is inexperienced, forgot to plan for something: the potential lockout.

Player and agent are basically using each other as line of credit until player made the NFL but it was the agent who was shelled out the money first expecting a return later.

So agent -- or should I say many agents -- are stuck with huge debts because of the lockout. Some in the agent community fear if the lockout extends into the summer there will be a legion of newer agents forced to declare bankruptcy and leave the business altogether.

Sure the agents should've planned better but they didn't and now here they are stuck in a potential financial mess. Make that, a likely financial mess.

Just like so many others.


Category: NFL
Tags: Labor
 
Comments

Since: Mar 1, 2007
Posted on: March 25, 2011 10:15 pm
 

Some NFL agents already starting to panic

Riomouse,
      
;     &nbs
p;   Great summary! If agents weren't out there taking 20%-25% of a players income, we wouldn't have as mush squabbling about money. But when a guy makes $1,500,000, pays 50% in tax and 20% to an agent, he's not bringing in a lot of money. I'm not sure if players are considered employee's or if they are incorporated, so I don't know if the agents fees are tax deductible. If they are, then they would pay 50% on $1,125,000 instead of the whole thing. Best case scenario, they take home $800,000; worse case they take home $500,000. Not a bad salary, but ridiculous that an agent should make so much in a capped league. More players should realize that they don't need an agent, and hire a good lawyer at $500/ hr to deal with the contract. If a guy knows he will make $2 million, he could pay 15K for a lawyer and get it done. Or, get an agent who will get you 2.5 million and pay the agent $750K for a net loss, a bunch of grief, and unnecessary animosity. Brood parasites those agents are, much like cowflies but with less dignity :)



Since: Aug 30, 2007
Posted on: March 25, 2011 9:15 pm
 

Some NFL agents already starting to panic

Riomouse, perfect summary. Could not have said it any better. 



Since: Jun 26, 2007
Posted on: March 25, 2011 5:26 pm
 

Some NFL agents already starting to panic

Basic survival 101. When the host is no longer able to supply the blood, the parasites die. Now if only all of the agents would shrivel up and die the world would be a better place.


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