Enforcement - Athlete Agents - Business & Professions - CA

Section § 18897.8

This law allows professional or student athletes, schools, and sports organizations to sue athlete agents if they are harmed by the agents' actions that violate the rules of the chapter. If a student athlete is banned from sports or loses money because of the agent's actions, it's assumed to be harmful. Schools are similarly protected if the institution itself or its athletes face suspensions or financial harm. If they win the lawsuit, they can get back losses greater than $50,000, punishment money, legal costs, and lawyer fees. The rule is meant to encourage people to take private legal action to enforce these protections.

(a) Any professional athlete, or any student athlete, or any elementary or secondary school, college, university, or other educational institution, or any league, conference, association, or federation of the preceding educational institutions, or any other person may bring a civil action for recovery of damages from an athlete agent, if that professional athlete, that student athlete, that institution, any member of that league, conference, association, or federation, or that other person is adversely affected by the acts of the athlete agent or of the athlete agent’s representative or employee in violation of this chapter. A student athlete is presumed to be adversely affected by the acts of an athlete agent, representative or employee in violation of this chapter if, because of those acts, the student athlete is suspended or disqualified from participation in one or more interscholastic or intercollegiate sports events by or pursuant to the rules of a state or national federation or association for the promotion and regulation of interscholastic or intercollegiate sports, or suffers financial damage, or suffers both suspension or disqualification and financial damage. An educational institution is presumed to be adversely affected by the acts of an athlete agent or of an athlete agent’s representative or employee in violation of this chapter if, because of those acts, the educational institution, or one or more student athletes admitted to or enrolled in the educational institution, is suspended or disqualified from participation in one or more interscholastic or intercollegiate athletic events by or pursuant to the rules of a state or national federation or association for the promotion and regulation of interscholastic or intercollegiate sports, or suffers financial damage, or suffers both suspension or disqualification and financial damage.

(b) A plaintiff that prevails in a civil action brought under this section may recover actual damages, or fifty thousand dollars ($50,000), whichever is higher; punitive damages; court costs; and reasonable attorney’s fees. An athlete agent found liable under this section also shall forfeit any right of repayment for anything of benefit or value provided to a student athlete, and shall refund any consideration paid to that athlete agent by or on behalf of the student athlete.

(c) It is the intent of the Legislature in enacting this section to encourage enforcement of this chapter through private civil actions.

athlete agent student athlete civil action

Section § 18897.83

If you're an athlete agent in California, you need to have someone in the state who can handle legal papers on your behalf.

Every athlete agent shall maintain an agent for service of process in California.

athlete agent service of process California requirement

Section § 18897.87

This law requires athlete agents to have financial protection in place for claims made against them or their team. They must have at least $100,000 of coverage for each claim, which can be provided either through liability insurance or by holding equivalent amounts in secure financial resources like cash, certificates of deposit, or other approved financial instruments.

Every athlete agent shall provide security for claims against the athlete agent or the athlete agent’s representatives or employees based upon acts, errors, or omissions arising out of the business of the athlete agent through either one or an aggregate of both of the following:

(a) A policy or policies of insurance against liability imposed on or against the agent by law for damages arising out of claims in an amount for each claim of at least one hundred thousand dollars ($100,000).

(b) In trust or bank escrow, cash, bank certificates of deposit, United States Treasury obligations, bank letters of credit, or bonds of insurance companies as security for payment of liabilities imposed by law for damages arising out of all claims in an amount of at least one hundred thousand dollars ($100,000).

athlete agent financial protection liability insurance

Section § 18897.9

This law states that if a sports agent doesn't follow specific legal requirements when negotiating a contract, the contract is invalid and has no legal effect. This applies to standards set before July 1, 1997, as well as current rules.

Any agent contract that is negotiated by an athlete agent who fails to comply with this chapter, or, prior to July 1, 1997, Chapter 1 (commencing with Section 1500) of Part 6 of Division 2 of the Labor Code, as amended and repealed by the bill that enacted this section at the 1995–96 Regular Session of the Legislature, is void and unenforceable.

athlete agent agent contract void contract

Section § 18897.9

If a sports agent doesn't follow certain legal requirements, any contracts they negotiate for players are invalid. This means they can't collect money or benefits from deals like endorsement or sports services contracts. If they've already been paid, they have to give the money back.

(a) Any agent contract that is negotiated by an athlete agent who fails to comply with this chapter, or has failed to comply with Chapter 1 (commencing with Section 1500) of Part 6 of Division 2 of the Labor Code, as repealed by Assembly Bill 1987 of the 1995–96 Regular Session, is void and unenforceable.

(b) No person shall owe an athlete agent any money or other consideration pursuant to an endorsement contract, financial services contract, or professional sports services contract negotiated by the athlete agent if the athlete agent fails to comply with this chapter, or has failed to comply with Chapter 1 (commencing with Section 1500) of Part 6 of Division 2 of the Labor Code, as repealed by Assembly Bill 1987 of the 1995–96 Regular Session. The athlete agent shall refund any money or other consideration paid pursuant to that contract.

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Section § 18897.93

If an athlete agent or their representative breaks any rules in this chapter, they're committing a misdemeanor. They can be fined up to $50,000, spend up to a year in county jail, or face both penalties. Additionally, the court can suspend or revoke their license to be an athlete agent for at least a year, depending on the seriousness and frequency of the misconduct. In certain cases, they must also return any money earned from the misconduct. If the Attorney General handles the case, that money goes to the state's General Fund. If a district attorney or city attorney prosecutes, most of the money goes back to the county or city, and the rest to the General Fund.

(a) An athlete agent or athlete agent’s representative or employee who violates any provision of this chapter is guilty of a misdemeanor, and shall be punished by a fine of not more than fifty thousand dollars ($50,000), or imprisonment in a county jail not exceeding one year, or by both that fine and imprisonment.

(b) The court shall suspend for a period of not less than one year or, where appropriate, revoke the privilege of any person convicted of a violation of this chapter to conduct the business of an athlete agent. In deciding whether to suspend or revoke the privilege to conduct the business of an athlete agent, the court shall consider any one or more of the relevant circumstances presented by any of the parties to the case, including, but not limited to, the nature and seriousness of the misconduct, the number of violations, the persistence of the misconduct, the length of time over which the misconduct occurred, and the willfulness of the defendant’s misconduct.

(c)

(1) Upon conviction of any provision of Article 3 (commencing with Section 18897.6), the court shall, in addition to any punishment imposed under subdivision (a), order an athlete agent or athlete agent’s representative or employee to disgorge all consideration received in connection with the violation.

(2)

(A) If an action under this section is brought by the Attorney General, the moneys collected shall be paid to the General Fund.

(B) If the action is brought by a district attorney, two-thirds of the moneys collected shall be paid to the treasurer of the county in which the judgment was entered and one-third shall be paid to the General Fund.

(C) If the action is brought by a prosecuting city attorney, two-thirds of the moneys collected shall be paid to the treasurer of the city in which the judgment was entered and one-third shall be paid to the General Fund.

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Section § 18897.97

This law says that the Secretary of State in California can create, change, or remove rules needed to manage a specific area, as long as those rules align with the existing laws about that area.

The Secretary of State may, in accordance with Chapter 3.5 (commencing with Section 11430) of Part 1 of Division 3 of Title 2 of the Government Code, adopt, amend, and repeal rules and regulations reasonably necessary for the purpose of administering this chapter and consistent with this chapter.

Secretary of State rules and regulations adopt