[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

Tenn. Code Ann. §§ 49-7-2111 - 49-7-2121

Enactment Date

-1988
-Amended 1996, 1997

Definitions

Student-athlete -Any person who has informed, in writing, an institution of higher education in Tennessee of such person’s intent to participate in that school’s intercollegiate athletics or who does participate in that school’s intercollegiate athletics and is eligible to do so.

Sports Agent -A person, the person’s agents or employees, who directly or indirectly, recruits or solicits any student-athlete to enter into any agent contract or professional sport services contract, or who for a fee procures, offers, promises or attempts to obtain employment for any student-athlete with a professional sports team or as a professional athlete.

-This definition includes an attorney licensed by any state who acts as a sports agent for any student-athlete, but does not include an attorney in the attorney’s capacity as legal counsel for such student-athlete with respect to contractual matters involving a career in professional sports.

Agent Contract -A contract or agreement in which a student-athlete authorizes a sports agent to represent the student in the marketing of the student’s athletic ability or athletic reputation.

Financial Services -The counseling on or the making or execution of investment and other financial decisions by a sports agent on behalf of the student-athlete.

Registration

-A sports agent must obtain a sports agent permit from the Secretary of State.

-Initial issuance of a sports agent permit requires the completion of an application and payment of a $250 permit fee for the applicant entity and/or the first agent, plus $50 for each additional agent, must be submitted by each athlete agent.

-Sports agent permits must be renewed annually by payment of a $100 renewal fee.

Bond

-A sports agent must post a $15,000 surety bond with the Secretary of State.

Consent to Jurisdiction

-A person who does business in the state as a sports agent, regardless of whether such person has a permit, shall by so doing consent to the jurisdiction of the courts of the state and shall be deemed to have appointed the Secretary of State as such person’s agent to accept service of process in any civil action related to such person doing business as a sports agent.

Contract

-An agent contract must contain warning language notifying the student-athlete of the loss of eligibility as a result of entering into such an agreement.

-The student-athlete may rescind the contract by giving notice in writing to the sports agent within 20 days of the latest occurring event:

-the date on which the contractual relationship between the sports agent and the student-athlete arises;

-notification of the contractual relationship is received by the chief executive officer of the student-athlete’s institution; or

-the date of the expiration of the eligibility period of the student-athlete if no notification is provided.

* There are a different set of triggering events contained in the contract warning language that also apply to the athlete’s right of recission.

-The right of recission cannot be waived.

-The sports agent shall not enter into an agent contract that purports to or takes effect at a future time after the student-athlete no longer has remaining eligibility to participate in intercollegiate athletics nor shall a sports agent postdate an agent contract.

Notification

-Both the sports agent and the student-athlete who enter into an agent contract must provide written notice to the athletic director or the president of the institution before the student-athlete practices or participates in any intercollegiate athletic event or within 72 hours after entering into the contract, whichever comes first.

Contact

-A sports agent may contact a student-athlete by sending the student-athlete written materials provided that the sports agent sends copies of the materials to the athletic director or the athletic director’s designee.

-A sports agent may contact a student-athlete when the student-athlete initiates the contact and the sports agent gives notice to the institution of higher education.

Prohibited Acts Subject to Criminal Penalties

It is an offense for a sports agent to:

-Knowingly offer, give or loan anything of value to a student-athlete, or any person acting for or on behalf of a student athlete, during such student-athlete’s period of eligibility for the purpose of inducing the student-athlete to enter into an agreement, agent contract or professional sport services contract with such agent;

-Enter into an agent contract without giving notice of entering into such contract to the athletic director or the president of the institution;

-Conduct business as a sports agent unless such person holds an active permit issued pursuant to the act, and no person shall knowingly aid or abet another person to conduct business as an unlicensed sports agent;

-"Aid or abet" means to actively assist in the recruitment or solicitation of a student-athlete.

-Make a verbal claim or by advertisement, letterhead, card or in any other way represent such person to be a sports agent unless such person possesses a valid permit issued pursuant to this act.

Penalties

-Failure of a student athlete to provide notification upon the signing of an agent contract shall result in disciplinary action in accordance with the student athlete’s institution’s rules and regulations for student conduct.

-Failure of a sports agent to provide notification will subject the sports agent to criminal penalties as provided in Sec. 49-7-2106(b)(the cited provision was repealed as of July 1, 1996).

-Violation of the first two prohibited acts (see above) is a Class E felony; violation of the latter two is a Class A misdemeanor.

•Institutional Remedies/Action for Damages

-An institution shall have a cause of action for damages against any person who is in violation of the act and an institution may also seek equitable relief to prevent or minimize harm arising from acts or omissions.

-An institution is damaged if a student or the institution is penalized or is disqualified or suspended from participation in intercollegiate athletics by a national association or by an intercollegiate athletic conference and, because of that penalty, disqualification, or suspension, the institution:

1. Loses revenue from media coverage;
   
2. Loses ticket sales;
   
3. Loses the right to grant an athletic scholarship;
   
4. Loses the right to recruit an athlete;
   
5. Is prohibited from participating in post-season competition;
   
6. Loses proceeds from any revenue-sharing agreement or arrangement between institutions in an athletic conference.
   
7. Forfeits an athletic contest; or
   
8. Otherwise suffers an adverse financial impact.

-An institution that prevails in such a suit may recover actual damages, punitive damages, court costs, reasonable attorney’s fees, and treble damages (three times the value of the athletic scholarship furnished by the institution to the student-athlete during the student-athlete’s period of eligibility)

-The institution has a 3 year statute of limitations from the date the damages were discovered or reasonably should have been discovered, whichever is sooner.

-If both the student-athlete and the sports agent are at fault, they shall be jointly and severally liable for any damages.

Athlete Agents Registered

-85 registered (as of Feb. 12, 1999)

State Contact Person

Donnie Jones/Chris Christian
State of Tennessee
Department of State, Division of Elections
Suite 500
James K. Polk Building
Nashville, TN 37243-0309
615/741-7956