[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

Md. Code. Ann. Bus. Reg. §§ 4-401 - 4-426

Enactment Date

-1992
-Amended in 1998 (definition of local athlete only)

Definitions

Local Athlete -An individual who is or was:

-a member of an institution of higher education that is in the State and is part of a national association for the regulation of intercollegiate athletics; or

-a member of a sports team of a high school in the State.

Sports Agent -A person who, for a fee, directly or indirectly tries to get employment for a local athlete with a professional sports team.

Sports Agent Contract -An agreement under which a local athlete authorizes a sports agent to negotiate with one or more professional sports teams to employ the local athlete or to make and carry out investment and other financial decisions or to provide other financial services.

Scope of Law

-The law applies to a sports agent contract that a sports agent makes with a local athlete either before the end of the local athlete’s last high school or intercollegiate athletic event, including any post-season game, or within 12 months after the end of the local athlete’s last high school or intercollegiate athletic event, including any post-season game.

License

-A person may not act as a sports agent unless the person obtains a license from the Secretary of State.

-A sports agent must annually complete an application and annually pay a license fee.

Contact

-Sports agents may send written materials to the local athlete regarding:

the professional credentials of the sports agent; specific services that the sports agent offers about representation of the local athlete in marketing the ability or reputation of the local athlete; or financial services that the sports agent can provide to the local athlete.

-A local athlete or the parent, legal guardian, or other advisor of a local athlete may contact a sports agent to determine the professional ability of the sports agent to represent the local athlete, market the ability or reputation, or provide financial services.

Contract

-Sports agents shall submit a copy of each sports agent contract to the Secretary and the athletic director of the institution of higher education or high school within 5 days after the local athlete signs the contract.

-The local athlete may cancel the sports agent contract by giving written notice of the cancellation to the sports agent within 15 days after the signing of the sports agent contract.

-A sports agent may only impose fees that are in accordance with the schedule of fees submitted by the sports agent to the Secretary of State.

Prohibited Acts

A sports agent may not:

-Advertise without disclosing the sports agent’s name and address.

-Make an oral or written agreement with an employee of an institution of higher education or high school in the state by which the sports agent offers anything of value to the employee in return for a referral of a potential client.

-Split fees with or receive compensation from a professional sports league or franchise, or their representative or employee.

-Offer anything of value, other than reasonable entertainment expenses and transportation expenses to and from the principle place of business of the sports agent, to induce a local athlete to make an agreement under which the sports agent will represent the local athlete.

-Publish or cause to be published any false or misleading information or give any false promises about employment.

-Enter into a sports agent contract with a local athlete before the local athlete’s last intercollegiate or high school athletic event, including any post-season game.

-Communicate with the local athlete (other than sending the information specified above or responding to the local athlete or athlete’s family/advisors) before the local athlete’s last intercollegiate or high school athletic event, including any post-season games.

-Enter into an agreement with the local athlete before the local athlete’s last intercollegiate or high school athletic event, including any post-season games that purports to take effect after the end of that athletic event.

Criminal Penalties

-A person who knowingly or willfully violates the act is guilty of a misdemeanor and, on conviction, is subject to a fine not exceeding $10,000 or imprisonment not exceeding 1 year or both.

Civil Penalties

-A sports agent who violates the act is subject to:

-Payment of a refund of any consideration paid to the sports agent for a local athlete, reasonable attorney’s fees and court costs incurred by a local athlete who recovers against a sports agent for a violation of the act.

-Forfeiture of any right of repayment for anything of value that a local athlete receives either as an inducement to enter into a sports agent contract or before completion of the local athlete’s last intercollegiate or high school athletic event, including any post-season game.

Sports Agents Registered

- 17 (as of Feb. 11, 1999)

State Contact Person

Dennis Gring
Maryland Department of Licensing and Regulation
Division of Occupational and Professional Licensing
500 N. Calvert Street
Baltimore, MD 21202
410/230-6224