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Rumor: NFL Rookie Deal Agent Fees To Be Capped At 2%

Before 31 NFL team owners approved (1 owner, Al David of the Oakland Raiders, abstained in the vote) what they called a comprehensive agreement, there were a lot of rumblings on Twitter regarding sources telling reporters that the new deal will include a reduction of the ceiling for NFL agent fees on negotiated rookie contracts.  Prior to the lockout, no agent could take more than a 3% commission on any negotiated team contract, rookie or veteran.  The rumor is that for rookie contracts alone, the new cap on agent fees will be 2%.  This could have far reaching negative effects on the agent community.

While initially it may seem as though a mere reduction of a single percentage point is negligible, realize that we are talking about percentage points on contracts worth 6-to-8 figures.  Let’s throw round values and length of contracts out of the window.  If you represent someone who is making $10,000,000 and you take 3%, you earn $300,000.  A mere one percentage point reduction and you forfeit $100,000.  Maybe that is not a big deal to a large agency with a huge client base, but to the smaller agents who are struggling to pay training costs alone and representing players who are drafted in the later rounds without those large contracts, that percentage point could be the difference between surviving to practice another year and calling it quits.

People who think that most agents have not been charging the 3% maximum commission are wrong.  The NFLPA has stated that the average commission charged by a certified contract advisor is roughly 2.9%.  Further, the fees that are typically reduced are for players selected in the top 10 picks of the first round.  Again, we are not talking about the small agents here.

It remains to be seen whether the rumor of a change in the commission cap on rookie deals turns out to be true.  As of right now, there is no deal in place – the players believe that the owners have voted on a collective bargaining agreement with provisions that were never agreed to by the players.  However, in the meantime, there are many people who are less than thrilled with the rumor of reducing the cap on agent fees.

I have provided some of the better Tweets from last night on this subject, below.

[blackbirdpie url=”http://twitter.com/#!/jayreisinger/status/94206057546657793″]

[blackbirdpie url=”http://twitter.com/#!/Joshluchs/status/94199547726802944″]

And my favorite:

[blackbirdpie url=”http://twitter.com/#!/RalphCindrich/status/94192637426413568″]

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.