BILL ANALYSIS �
SB 101
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SENATE THIRD READING
SB 101 (Corbett)
As Introduced January 11, 2011
Majority vote
SENATE VOTE :36-0
JUDICIARY 10-0 ARTS, ENTERTAINMENT, SPORTS
9-0
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|Ayes:|Feuer, Wagner, Atkins, |Ayes:|Campos, Olsen, Achadjian, |
| |Dickinson, Beth Gaines, | |Butler, Carter, Gatto, |
| |Huber, Huffman, Jones, | |Mendoza, Monning, Silva |
| |Monning, Wieckowski | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Clarifies the relationship between talent agencies, teams
and leagues with regards to procuring and negotiating sponsorship
agreements, media rights, endorsements and sales of a team.
Specifically, this bill :
1)Prohibits an athlete agent from having an ownership or financial
interest in any entity, only if that entity directly employs an
athlete in the same sport as a person with whom the athlete agent
has entered into an agent contract.
2)Prohibits an athlete agent from dividing fees with, or receiving
compensation from, a professional sports league, team, or other
organization, or its representatives or employees, only 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.
3)Prohibits an athlete agent from offering or allowing 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.
EXISTING LAW :
1)Regulates athlete agents regarding the representation of
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professional and student athletes.
2)Defines "agent contract" as any contract or agreement in which a
person authorizes or empowers an athlete agent to negotiate, or
solicit on behalf of the person, with one or more professional
sports teams or organizations, for the employment of the person by
one or more professional sports teams or organizations, or to
negotiate or solicit on behalf of the person for the employment of
the person as a professional athlete.
3)Defines "athlete agent" as any person who, directly or indirectly,
recruits or solicits an athlete to enter into any specified type
of contract, or for compensation procures, offers, promises,
attempts, or negotiates to obtain employment for any person with a
professional sports team or organization or as a professional
athlete. A talent agency is considered an "athlete agent" if they
engage in above defined activity.
4)Prohibits an athlete agent from owning or having a financial
interest in any entity that is directly involved in the same sport
as a person with whom the athlete agent has entered into an
agreement contract for the purposes of negotiating an endorsement
contract, financial services contract or professional sports
service contract, or providing advice concerning potential or
actual employment as a professional athlete.
5)Requires an athlete agent, if providing financial services to the
athlete, to disclose potential conflicts of interest, as
specified.
6)Prohibits an athlete agent from dividing fees with, or receiving
compensation from, a professional sports league, team, or other
organization or its representatives or employee, or 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.
7)Makes the violation of any of the above provisions a misdemeanor
offense.
FISCAL EFFECT : None
COMMENTS : This non-controversial bill seeks to update current
athlete agent conflict of interest rules to address actual conflicts
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of interest related to employment activity, while still allowing
talent agencies to service teams and leagues in situations unrelated
to on-field employment of athletes. According to the author:
Under current law, an agent is prohibited from having an
ownership or financial interest in any entity that is
directly involved in the same sport as a person the agent
represents.
However, in the past 15 years, the talent agent business
has grown and expanded beyond traditional television, film
and music businesses. Talent agencies now represent
athletes, corporations and non-traditional TV personalities
and broadcasters. They also provide services that include
marketing, licensing and business development.
Senate Bill 101 clarifies that talent agencies can
represent leagues and teams for procuring and negotiating
sponsorship, endorsements, media rights, and purchase or
sale of a team. Representation of leagues and teams are not
in connection with the representation of professional
athlete for on-field services and does not present a
conflict of interest.
In the late 1990s a series of incidents involving illegal actions by
sports agents focused national attention on the need to regulate the
athlete agent industry. In order to close loopholes created by
variations in state law, the National Conference of Commissioners on
Uniform State Laws (NCCUSL) began work in 1997 on developing a model
state athlete agent law. After consulting various industry groups,
colleges and professional sports teams, the NCCUSL created the
Uniform Athlete Agents Act (UAAA). The model law provides for
important protections for student-athletes and educational
institutions while assisting athlete agents by standardizing and
streamlining the regulations governing the profession. Under the
UAAA there are no prohibitions on athlete agents representing teams
and leagues in matters unrelated to on-field employment of athletes.
This bill brings California law in line with that of nearly 40
other states.
Analysis Prepared by : Drew Liebert and Nicholas Liedtke / JUD. /
(916) 319-2334
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