Saturday, October 14, 2006

A Proposal to Unions: The Agent Business May Require Systemic Change

For anyone interested, I just posted on SSRN my recent article published in the Willamette Law Review, Solving Problems in the Player Representation Business: Unions Should be the "Exclusive" Representatives of the Players. You can access it by clicking on the link to my articles posted on the blog. You will need a free SSRN account to read it, and you can get such an account here.

My article examines how the economics of the player representation business, with increasing player salaries under a commission-based agent fee system, are fueling more intense competition among agents, which is detrimental to the players, the teams and the leagues. I argue that players associations, as the exclusive representatives of the players under the labor laws, must consider whether the third party agent representation system serves the best interest of the players collectively, and whether the system can be improved for the betterment of all union members, not just a handful of premier players. I propose that the players associations establish internal player management agencies giving players the option to retain a full-time salaried agent employed by the union. I also propose some revisions to the unions' existing agent regulations, including an alternative agent fee structure, a complete ban on client solicitation, and more union administration and oversight in the agent selection and representation process, which would substantially reduce the incentive for agents to engage in harmful competition and would ensure that players are paying their agents a reasonable fee but would at the same time maintain the player's autonomy in selecting his own agent.

I understand that the concept of unions representing players seems unrealistic and difficult to do from an administration standpoint, conflicts of interest, etc., and my article discusses these issues in-depth.

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