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Headline NBA Players Sports Law

Eddy Curry Wants To Open Up The Books

curry

One thing that I have learned since starting this blog and reading quite a bit of material on the sports agent profession, is that nine times out of ten, a sports agent should not be in charge of handling his clients’ money.  In fact, maybe a sports agent should never personally handle client income.  I have to believe that the majority of lawsuits in this field concern the mismanagement of player salaries by athlete agents.  There is no problem with giving clients advice on wealth managers and financial planners, but to try to do it on your own, while negotiating deals with teams/companies, can be messy.  Especially if you do not have the requisite Finance background to do a job well done.

Malpractice is a term that is not limited to the medical profession.  Lawyers can be sued for not performing their duties and so can people who hold themselves out to being knowledgeable wealth managers.  Additionally, sports agents can get themselves into trouble without offering any financial advice.

Players’ associations are smart.  They will not make payments directly to agents.  Instead, players’ salaries are paid to the players, who then may compensate their agents according to the terms set forth in their agreements.  Outside of the players’ association, agents may put other terms into their agreements with their clients.  For instance, it is popular for an agent to place a clause in his Representation Agreement, that the client will direct all sponsors to pay the agent directly.  Thereafter, the agent will deduct his percentage (usually anywhere from 10-25%), and then send the rest to the client.  If no shady business occurs, this practice is fine.  It’s when the books are not kept clean that problems occur.

Eddy Curry believes that his former agent, Lamont Carter, might have been withholding some of Curry’s earnings and wants to see the books.  I do not know what Curry’s agreement with Carter looked like, but it would have been smart for him to place a clause in the agreement that had something to do with giving him permission to audit Carter’s books and records from time to time.  But even if no such clause was present, Curry may still have a solid access argument since the agent owes a duty to disclose information and to not to put himself in a position where his own interests may conflict with the interest of the client.  While Curry is no longer the principal, if Carter withheld information in violation of his fiduciary duty and withheld money rightfully owed to Curry, the books will probably be opened by Court decree.

It’s a cliche, but with power comes great responsibility.  If you want the money to come into the agency first and take your commission before sending the bulk of money to your clients, go for it.  But realize that it is your fiduciary duty to act in the best interest of your clients at all times.  There is nothing wrong with openness when you are doing the right thing and not hiding money from clients.

By Darren Heitner

Darren Adam Heitner, Esq., is a preeminent sports attorney and the founder of Heitner Legal, P.L.L.C., a Fort Lauderdale-based law firm specializing in sports law, contract negotiations, intellectual property, and arbitration. He earned his Juris Doctor from the University of Florida Levin College of Law in 2010 and a Bachelor of Arts in Political Science, magna cum laude, from the University of Florida in 2007, where he was named Valedictorian of the College of Liberal Arts and Sciences. Admitted to practice in the state bars of Florida, New York, and the District of Columbia, as well as multiple federal courts, Darren also serves as a certified arbitrator with the American Arbitration Association.

As an adjunct professor, Darren imparts his expertise through teaching Sports Law at the University of Florida Levin College of Law and Name, Image, and Likeness (NIL) at the University of Miami School of Law in the Entertainment, Arts, and Sports Law LL.M. program. His scholarly contributions include authoring several books published by the American Bar Association, such as How to Play the Game: What Every Sports Attorney Needs to Know, and numerous articles in prominent publications like Forbes, Inc. Magazine, and Above the Law. His thought leadership in NIL has earned him recognition as one of the foremost experts by The Wall Street Journal, USA TODAY, and On3, and he has been lauded as a “power player in NIL deals” by Action Network and a “top sports trademark attorney” by Sportico.

Darren’s passion for sports law led him to establish Sports Agent Blog on December 31, 2005, initially titled “I Want To Be A Sports Agent.” The platform, created as a New Year’s resolution, has grown into a cornerstone of the sports agency community, offering in-depth analysis of industry trends, legal disputes, and agent-player dynamics. His commitment to the field is further evidenced by his representation of numerous athletes and sports agents, as well as his prior role as an Adjunct Professor at Indiana University Bloomington, where he developed and taught a course on Sport Agency Management from 2011 to 2014.

Darren’s contributions have been recognized with prestigious honors, including the University of Florida’s 40 Under 40 Award, the University of Florida Levin College of Law’s Outstanding Young Alumnus Award, and designation as the best lawyer in Fort Lauderdale by Fort Lauderdale Magazine. He remains an active voice in the sports law community, sharing insights through his weekly NIL newsletter and his X posts, engaging a broad audience on legal developments in sports.