Section § 18897

Explanation
This law requires that any contract an agent enters into must be written down. The contract should clearly outline what services the agent will provide and how much those services will cost.
Every agent contract shall be in writing and shall include a description of the types of services to be performed and a schedule of the fees to be charged under the contract.

Section § 18897.1

Explanation

This law requires that every athlete agent contract must clearly state, in large bold letters, that the agent has their public information filed with California's Secretary of State. This filing is required under laws that protect athletes, but it doesn't mean the state approves the contract or the agent's skills.

The following shall be printed on the first page of every agent contract in boldface type at least two points larger than any other type on the page: “This athlete agent has current public disclosure information on file with the California Secretary of State as required by the Miller-Ayala Athlete Agents Act, Chapter 2.5 (commencing with Section 18895) of Division 8 of the Business and Professions Code, which also includes other protections for athletes. Filing of the required information does not imply approval by the California Secretary of State of the terms and conditions of this agent contract or the competence of the athlete agent.”

Section § 18897.2

Explanation

If an athlete's salary is paid to an agent instead of the athlete directly, the agent must set up a trust fund to hold that money. The agent has to immediately put any payments received for the athlete into this trust fund, which should be in a bank or financial institution that is either state-licensed or federally chartered.

A trust fund shall be established when an athlete agent is the recipient of the athlete’s salary. An athlete agent who receives any payment on behalf of the athlete shall immediately deposit the payment in a trust fund account maintained by the athlete agent in a state or federally chartered financial institution.

Section § 18897.23

Explanation

If you're an athlete agent, you need to keep detailed records for anyone who hires you and the fee you receive from them. Don't lie on these records, and make sure to keep them for at least seven years. This rule only applies to your athlete agent activities, not other business dealings you might have.

(a)CA Business & Professions Code § 18897.23(a) Every athlete agent shall maintain records which include the following information:
(1)CA Business & Professions Code § 18897.23(a)(1) The name and address of each person employing the athlete agent.
(2)CA Business & Professions Code § 18897.23(a)(2) The amount of fee received from that person.
(b)CA Business & Professions Code § 18897.23(b) No athlete agent or athlete agent’s representative or employee shall make any false entry in the records. All records required by this section shall be kept for at least seven years.
(c)CA Business & Professions Code § 18897.23(c) This section does not apply to any business of the athlete agent other than the athlete agent business.

Section § 18897.27

Explanation

This law says that athlete agents cannot own or have any financial stake in companies that hire athletes in the same sport as the athletes they represent or are negotiating contracts for, like endorsements or financial services.

No athlete agent shall have an ownership or financial interest in any entity that directly employs athletes in the same sport as a person with whom the athlete agent has entered into an agent contract, or for whom the athlete agent is attempting to negotiate an endorsement contract, financial services contract, or professional sports service contract, or for whom the athlete agent provides advice concerning potential or actual employment as a professional athlete.

Section § 18897.3

Explanation

If someone acting as an athlete agent offers financial advice or services to an athlete, they must tell the athlete if they own a part of any business they're recommending. They also have to let the athlete know if they will earn a commission from the athlete's investment.

If an athlete agent or athlete agent’s representative or employee provides financial services to a professional athlete or student athlete or advises the athlete concerning investment of funds, the athlete agent shall disclose to the athlete any ownership interest the athlete agent, representative or employee has in any entity regarding which the athlete agent, representative or employee is providing financial services or giving advice, and any commission the athlete agent, representative or employee will receive from the athlete’s investment.

Section § 18897.33

Explanation

This law says that athlete agents cannot make contracts that include anything illegal, and they can't help with jobs that would break the law.

No athlete agent shall knowingly enter into a contract containing any term or condition that, if complied with, would be in violation of law, or attempt to fill an order for help to be employed in violation of the law.

Section § 18897.37

Explanation

This law makes it illegal for athlete agents or anyone working for them to publish or share false, misleading, or fraudulent information. They must not make false promises or give incorrect information about employment opportunities to anyone.

No athlete agent or athlete agent’s representative or employee shall publish or cause to be published any false, fraudulent, or misleading information, representation, notice, or advertisement. No athlete agent or athlete agent’s representative or employee shall give any false information or make any false promises or representations concerning any employment to any person.

Section § 18897.4

Explanation

If you're an athlete agent and you're advertising your services, you have to include your name and business address in all your ads.

All forms of advertising used by an athlete agent shall include the name and business address of the athlete agent.

Section § 18897.43

Explanation

This law says that an athlete agent must inform someone if they are trying to get them a job at a place that is affected by a strike, lockout, or any other labor dispute. The agent must not knowingly skip giving this warning.

No athlete agent shall knowingly secure employment for persons in any place where a strike, lockout, or other labor trouble exists, without notifying the person of those conditions.

Section § 18897.47

Explanation

This law prevents athlete agents from sharing fees or receiving payments from professional sports leagues, teams, or organizations if the payments are related to athletes' on-field activities or their representation as it pertains to employment. Additionally, athlete agents cannot let full-time employees of a union or players’ association involved in professional sports have any ownership or share any of their earnings.

No athlete agent shall divide fees with or receive compensation from a professional sports league, team, or other organization or its representatives or employees, if the fees or compensation are directly related to on-field activities of athletes or other representation of the league, team, or organization as it directly relates to the employment of athletes. In addition, no athlete agent shall offer or allow any full-time employee of a union or players’ association connected with professional sports to own or participate in any of the revenues of the athlete agent.

Section § 18897.5

Explanation

This law prohibits athlete agents from making or signing any contracts with athletes that have terms starting or taking effect at a future date. They can't negotiate or enter into any agreements that are set to kick in later.

No athlete agent shall negotiate or enter into any postdated agent contract, endorsement contract or professional sports services contract or any agent contract, endorsement contract or professional sports services contract that purports to or takes effect at a future time.