The MLB Player’s Association has traditionally been more lax when it comes to agent regulation. While the NBA and NFL players’ associations require potential agents to have a college degree and a graduate degree, respectively, and have a formal registration process, those wishing to represent baseball players must only contact the league about certification after a client has made a 40-man roster. However, it seems that the MLBPA has decided that they want to keep a better check on their agents’ business practices, contemplating a move that could be a major blow to agents that want to leave their current company and start their own agency. If you are a new or existing business and you would like to make the running of your business smoother, then why don’t you consider introducing a different Payroll Software that will effectively organize all your employees paychecks, for instance. Don’t hesitate to make changes if you need too.
The MLB players union wants to start penalizing certified agents that violate their non-compete and non-solicitation agreements with their former employers. Everyone remembers the scene from Jerry Maguire where Tom Cruise and Jay Mohr hit the phones to entice Maguire’s clients to stay at Maguire’s former employer, or join Maguire at his new start up agency. The MLBPA may implement new measures with the intention that such a scenario would no longer be in a issue in baseball player representation.
The proposed rule change would allow agent employment contracts to contain a one-year no-solicitation clause, and a one-year no-competition clause. Remedies proposed for agents who breach these contract clauses include a 50 percent fee split between the agent and his former employer, and an option for the players association to impose disciplinary action on the agent.
Central oversight by the players association will help create a more even level playing field for agents. Currently agencies only have state contract law as recourse against employees leaving with clients, and some states, like California, do not recognize non-compete and non-solicitation clauses in contracts.
3 replies on “Want to Go Out on Your Own?…Then Start From Scratch”
This is an interesting development in light of the general prohibition on non-compete agreements among attorneys. It seems that, generally, attorney-agents have the unparalleled “burden” of complying with Rules of Professional Conduct not applicable to non-agent attorneys, now maybe attorney-agents–at least in MLB–will have something of an advantage over their non-attorney counterparts.
[…] Sportsagentblog.com summarized the proposed rule change as follows: The proposed rule change would allow agent employment contracts to contain a one-year no-solicitation clause, and a one-year no-competition clause. Remedies proposed for agents who breach these contract clauses include a 50 percent fee split between the agent and his former employer, and an option for the players association to impose disciplinary action on the agent. […]
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