Special Alert

Illinois recently adopted the Illinois Athlete Agents Act requires that an individual may not act as an athlete agent in Illinois without holding a license.  An "athlete agent" means any individual who enters into an agency contract with a student-athlete, or recruits or solicits a student-athlete to enter into an agency contract, but does not include spouses, parents, siblings, grandparents or guardians of student athletes, or individuals acting solely on behalf of a professional sports team.  The act provides that contracts between student-athletes and unlicensed agent are void. 

The act further requires that the contract between student-athletes and agents contain the method for calculating consideration to be paid to the athlete, a description of expenses, the contract term, and the date of execution.  Agent contracts must also contain, in close proximity to the signature of the student-athlete, a conspicuous notice in boldface type in capital letters which states: WARNING TO STUDENT-ATHLETE IF YOU SIGN THIS CONTRACT: (1) YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A STUDENT-ATHLETE IN YOUR SPORT; (2) IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72 HOURS AFTER ENTERING INTO THIS CONTRACT OR BEFORE YOUR NEXT SCHEDULED ATHLETIC EVENT, WHICHEVER OCCURS FIRST, BOTH YOU AND YOUR ATHLETE AGENT MUST NOTIFY YOUR ATHLETIC DIRECTOR; AND (3) YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS AFTER SIGNING IT. CANCELLATION OF THIS CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY.  Contracts that do not contain these elements and disclosures are voidable by the student-athlete.  Agents who violate the law could receive a civil penalty not to exceed $10,000.  Furthermore, the law provides a cause of action for schools against agents who violate this law.

TIP: Sports agents who intend to solicit student-athletes in Illinois should immediately register as an agent.  Student-athletes should confirm that their agent is licensed before signing any agreement, and must promptly inform their athletic director after signing an agreement with an agent.