The Agents Exhale

Even though there will be 256 contracts negotiated this summer for the 2009 draft picks, it’s time for agents to take a little break and exhale. The 2008-2009 draft “cycle,” as we call it, is over.

I know you’re thinking that our job for this rookie class is actually just beginning, but that’s not the case in this business. The agent community began this cycle in April or July of last year when we made our first phone calls or mailed our first brochures to prospective recruits. You see, agents live in recruiting cycles, not season cycles. That’s our life.

There’s still much work to do for our rookies, whether they’re first-round picks or undrafted free agents. For most seasoned agents, this is the part we love -- negotiating contracts. It can get complicated and a bit stressful, but it’s not as time-consuming as you’d think. Actually, 75 percent of agents and teams won’t even begin to negotiate until they see the market value of the draft slots start to take shape. Nobody likes to be the first in the pool for fear of being one-upped by subsequent deals. 

Here’s a loose checklist of some of my agent duties for the next few months: 

Make sure they’re properly protected and insured in mini-camps and workouts.

Even though players are without contracts right now, they get “tendered” by the teams that drafted them. The agent and the team work out an agreement (most are standard) that stipulates if the player is injured while working out with the team, it will still negotiate as if the player were healthy. And/or it may state that the player will receive the amount equivalent to the average of the players drafted around him. This agreement is not always standard for first-round top 10 picks because there’s more money at stake.

Help them with the logistics of a new city.

I have already been asked by a few of my players if they should drive to camp or fly. It’s the agent’s job to give his player guidance about what to expect in his new city and how the logistics of lodging and transportation will work. Players want to know when and if they should look for an apartment or buy a house. I usually recommend that my players rent for the first year and get to know their new city before making a decision. I also want to make sure they make the team before putting down any roots (or down payments).

Set “net” expectations of new contract and signing bonus.

Every year since I’ve been in the business, I get the same call from every client after they receive their first check. “Jack, something’s wrong with my check. I was supposed to receive $450,000, but my check is only for $245,000.  I know they were supposed to take taxes out and stuff, but this seems wrong.” 

Actually, it’s usually right. No matter how many times I, or a player’s financial advisor, warn them about the size of the tax bite, it doesn’t sink in until they get their first check. Until this happens, players have an illusion that they’re wealthier than they may actually be.

Taxes and finances.

For players who have not secured an accountant or financial consultant, I try to make sure my clients are in good hands. (For any CPAs or financial guys reading this, my clients are set, so please don’t call.)

Many agents will disagree with me, but in most cases the financial consultant is probably the most important part of a young player’s team. Playing professional sports means you have to fiscally plan each year like it’s your last. That’s easier said than done. Players have already hit a home run with the contract, so I preach to be conservative with their money and “preserve” what they have. Keep it simple. Also, get an accountant who has worked with NFL players in the past. A player has to file in every state he plays in.

Secure or adjust career-ending disability insurance.

For clients who have yet to make big money, I recommend getting an insurance policy against injury until they do. I always recommend it for rookies because it’s cheaper when they’re younger. I also recommend it for vets going into the last year of a contract.

Endorsements/PR.

Try to secure a shoe deal right away. Sometimes the money dries up later on for lower-round draft picks. I believe this year Nike and other companies will make cuts. In addition, I will sometimes secure a local PR firm or marketing firm if it’s a big city with a hot team.

Agents have it a little easier than they did a few years ago because every team now has a player development coordinator who helps young players with the day-to-day needs and challenges of being in a new city. This position is usually filled by an ex-player.

Last, but not least, is the contract negotiation. Some agents may have four to six contracts to do, but those with that many draft picks usually have a team of two or more agents, so the research or prep work gets spread around.  The majority of negotiations don’t even get started until July, and most times not until the week of camp. I once did a contract for a fifth-round pick on a 15-minute call. Last year, I think it took the Vikings’ Rob Brzezinski and me about three phone calls to complete a second-round deal for safety Tyrell Johnson. Our history and mutual respect demand that neither of us beat around the bush and that we get to the bottom line. Those agents who have been in business a while and have solid relationships with front offices should have smooth negotiations with any players drafted after the first round. Not all teams are accommodating, but for the most part, it’s the least laborious part of our job – and the most important. A lot of times, a player is really paying us for our experience and relationships. Newer agents may find their first several negotiations a little rough, and most teams will work them over if given the chance.

So we’re a bit idle in May and June. However, some of the more aggressive agents are already on the recruiting trail for next year. They’re cold calling, sending out brochures and emails, and may even have meetings set up with seniors-to-be in June. Not me. I believe in a balanced life and that college players shouldn’t be badgered by agents year-round. I use this time to visit Europe and/or a new country every year. But I never leave until all my clients’ business and contractual affairs are under control.

So no trip scheduled yet!

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