[Below is a summary of this state's athlete agent law (as of spring 1999). The summary is intended only to provide an overview of the state law. For further information, readers should consult the applicable state code section.]

Code Section

Kan. Stat. Ann. §§ 44-1501 - 44-1515

Enactment Date

-1996

Definitions

Athlete -A person who is eligible to participate in intercollegiate sports contests as a member of a sports team of an institution of higher education located in Kansas; or

-A person who has participated as a member of such a sports team at an institution of higher education located in Kansas and who has never signed a contract of employment with a professional sports team.

Athlete Agent -A person that, for compensation, directly or indirectly recruits or solicits an athlete to enter into an agent contract, professional sports services contract or financial services contract with that person or that for a fee procures, offers, promises, or attempts to obtain employment for an athlete with a professional sports team.

Agent Contract -Any contract or agreement under which an athlete authorizes an athlete agent to negotiate or solicit on behalf of the athlete with one or more professional sports teams for the employment of the athlete by one or more professional sports teams.

Financial Services Contract -Any contract or agreement under which an athlete authorizes an athlete agent to provide financial services for the athlete, including the making and execution of investment and other financial decisions by the agent on behalf of the athlete.

Registration

-An athlete agent must register with and receive a certificate of registration from the Secretary of State.

-An athlete agent must annually complete an application form and annually pay a $1,000 registration fee.

-Registration Exceptions:

-Those who are licensed or registered with the state as a broker-dealer, an agent, or any registered and licensed financial professional, who are providing the type of service for which they are licensed or registered, and who are not recruiting or soliciting the athlete to enter into an agent or professional services contract or procuring, offering, promising, or attempting to obtain employment for an athlete with a professional sports team.

Bond

-An athlete agent shall deposit with the Secretary of State a surety bond in the sum of $100,000 or show proof of professional liability insurance in an equivalent amount.

-Recovery of damages is not limited to the amount of the bond.

Contract

-Sets standards for contracts, includes a "notice to client" requirement and the right of the student-athlete to rescind the contract within 16 days after signing it.

-Athlete agents must file copies of all contracts with the Secretary of State.

-If the athlete is a student at an institution of higher education in Kansas, the athlete agent must file a copy of the contract with the athletic director of the institution not later than the fifth day after the date on which the contract is signed by the athlete.

Prohibited Acts

The athlete agent may not:

-Advertise without disclosing the agent's name and address in the advertisement.

-Publish or cause to be published any false, fraudulent, or misleading information, representation, notice, or advertisement or give any false information or make any false promises or representations concerning any employment to any person.

-Divide fees with or receive compensation from a person that does not meet registration criteria, or a professional sports league or franchise or its representative or employee.

-Enter into any agreement, written or oral, by which the athlete agent offers anything of value to any employee of an institution of higher education located in Kansas in return for the referral of any clients by that employee.

-Offer anything of value to induce an athlete to enter into an agreement by which the athlete agent will represent the athlete.

-Directly contact, except as otherwise provided by the act, an athlete to enter into any agreement, written or oral, by which the athlete agent will represent the athlete, until after completion of the athlete's last intercollegiate contest. The agent may not enter into an agreement before the athlete's last intercollegiate contest that purports to take effect at a time after that contest is completed.

Contact

The athlete agent may:

-Send to an athlete written materials relating to the professional credentials of the agent or to the specific services offered by the agent relating to the representation of an athlete in the marketing of an athlete's athletic ability or reputation or to the provision of financial services by the agent to the athlete.

-Interview with an athlete or an athlete's family or advisors when the athlete, the athlete's family or advisors have contacted the athlete agent to determine that agent's professional proficiency in the representation of an athlete.

Duties of the Educational Institution

-Each institution of higher education in Kansas shall designate an individual to serve as compliance coordinator for that institution.

-The compliance coordinator shall organize any athlete agent interviews for their campus.

-The compliance coordinator shall ensure the compliance of its institution and athletes with the act.

-The compliance coordinator or Secretary of State shall notify each registered athlete agent, in writing, of an interview period not later than the 30th day before that interview period begins.

-Each institution of higher education in Kansas shall adopt standards relating to the implementation of the act and specifically to guidelines associated with its athlete agent interview program. The institution shall submit its standards within 30 days after the standards are approved.

Penalties/Subpoena Power

-The Secretary of State may require and compel, by subpoena or summons, the attendance and testimony of witnesses and the production of any books, accounts, records, magnetic or electronic recordings, papers, contracts, correspondence, or other records the secretary deems relevant or material to a matter which the secretary has the authority to investigate.

-The Secretary of State may refer a case to the attorney general for prosecution.

-A registered or unregistered athlete agent who violates the act may be subject to:

-A civil penalty not to exceed $25,000.

-Forfeiture of any right of repayment for anything of value received by an athlete as an inducement to enter into a contract.

-A refund of any consideration paid to the athlete agent on an athlete's behalf.

-Reasonable attorney's fees and court costs incurred by an athlete in suing and recovering against an athlete agent for a violation of the act.

-An agent who intentionally or knowingly violates the act commits a Class A misdemeanor.

Actions for damages

-An institution of higher education located in Kansas that is adversely affected by activities of an athlete agent who violates the act may sue the athlete agent for actual damages, exemplary damages, court costs and reasonable attorney's fees.

-An institution is considered adversely affected if, because of the activities of the athlete agent, the institution is disqualified or suspended from participation in intercollegiate sports contests by a national association for the promotion and regulation of intercollegiate athletics, and, because of that disqualification or suspension, the institution:

-loses revenue from media coverage of sports contests;

-loses the right to grant athletic scholarships in the sport affected;

-loses the right to recruit athletes; or

-otherwise suffers an adverse financial impact.

Athlete Agents Registered

-4 athlete agents registered (as of February 12, 1999)

State Contact Person

Janet Chubb, Assistant Secretary of State
Teresa Keating
Office of the Secretary of State
300 SW 10th Ave.
2nd floor, State Capital
Topeka, KS 66614
785/296-2034

Melissa Wangemann, Legal Counsel
785/296-4801