Students learn about legal issues, negotiations
By Darren Rovell
ESPN.com
As G. Lynn Lashbrook sat in a movie theater and watched "Jerry Maguire," the sports agent knew that the tale of Maguire and his rival Bob Sugar would spawn a new generation of fans wanting to be sports agents.
So Lashbrook, sort of like Tom Cruise's character who was fired, parted ways with his business partner Jim Steiner to develop his dream. He set up a learning program for everyone who wanted to become an agent, offering graduates of the course (for a small up-front fee and a splitting of the commissions) a place in his newly formed agency.
"I knew that more and more people would be interested in becoming agents," Lashbrook said. "And I also thought that the current model of the same agent having 60 clients was destined to fail because the more clients an agent has, the less likely it is that he is able to hold [on to] the relationship with his athletes."
The latter has yet to come true. Many agents
have scores of clients while some have none.
But Lashbrook's premonition that an agent would
be a hot occupation was right on. More than
1,100 agents are registered with the NFL. More
than half of those agents don't have a single client.
"Sports and entertainment have assumed a very visible place in our society," said Phil de Picciotto, president of Octagon, which represents the likes of Michael Phelps, Jeanette Lee, Anna Kournikova and John Elway. "As the business of sports and entertainment has found its way into the media, people realized that if they don't have the talent to continue to play sports, being an agent is a way to stay involved."
More than eight years after the movie's release, approximately 1,000 students have taken Lashbrook's online agent course. It's an eight-week session that reviews agent rules, legal and financial issues and contract negotiations. It costs $1,090, including books. In addition, there's a $200-a-year fee (plus sharing in the commission) for Lashbrook's staff of 10 to help agents with their clients. As a result, Lashbrook's company, Sports Management Worldwide, will gross more than $1 million this year.
"We are IMG without walls," said Lashbrook, referring to one of the largest sports agencies. "We spread the wealth."
However, many agents are somewhat critical of Lashbrook's teaching approach.
"You don't need to take a course," said Rick Smith, a former lawyer who is currently an agent with Priority Sports, which represents more than 100 athletes. "Pay a fee and pass a test and you can call yourself an agent."
For the NFL, it's a $1,600 check, a three-hour exam and proof of a degree from a four-year college. And while it's easy to get certified, it's not that easy to become independently wealthy.
"People that eat food think they can run a restaurant," Smith said. "And there are many sports fans who say, 'If I can't get a job with a team, I'll just be an agent.' It's just much harder than that."
Smith has a point. Agents surveyed by ESPN.com agreed that less than 5 percent of all registered agents net more than $100,000 a year (taking 1 percent to 4 percent from contract work and 10 to 20 percent on marketing deals).
"It seems like it's a sexy business to be in," said NBA agent Bill Neff. "I tell people it's not even close to what you think."
Lashbrook's definition of success for his agents isn't necessarily making hundreds of thousands of dollars. Many of his agents maintain their everyday jobs while enjoying their work as representatives.
One of Lashbrook's agents, Ward Coffman, represents Olena Sowers, the No. 1-ranked table tennis player in the world in the under-14 division, and arm-wrestling champion Travis Bagent. But the money isn't enough for Coffman to give up his job as a banking lawyer.
"I spend 40 hours a week at my practice and 25 to 30 hours a week as agent," said Coffman, 52, who says he eventually wants to be a full-time agent.
Guys like Coffman might never threaten to have a more impressive client list than agents at IMG and Octagon. But Lashbrook thinks that friends and relatives of top athletes one day could put a dent in the behemoths' client rosters.
"The collective bargaining agreements used to be much more complex," Lashbrook said. "Many more athletes are going to go with people who are close to them who can learn the skills."
As evidence, Lashbrook points to the recent defection of NBA phenom LeBron James from his former agents, Aaron and Eric Goodwin, to a group of his friends. Lashbrook says he's had cousins and mothers of athletes take his agent course.
While de Picciotto agrees that there is room for the solo practitioners, he doesn't think many high-profile stars can afford to go on their own or give the agent duty to their best friends.
"The right agency can certainly add value to an athlete and is arguably more important now, with the stakes higher than ever before," he said.
Lashbrook is at the top of the agent-education business. Although no schooling is needed to become an agent, three law schools currently have sports-agent programs, while several online entrepreneurs have made money off the recent agent boom.
One of those entrepreneurs is Kevin Willingham of Pro Sports Group, who offers a sports-agent course for $375 but does most of his business by selling materials that can be useful for prospective agents.
The company's best seller is an online sports-agent directory that boasts constantly updated contact information for more than 3,500 registered agents (across various sports) for $300. But there's competition. Another agent directory sells for $59.95 on the Web site All-Sports-Agents-Directory.com.
But even with the agents' numbers in hand, it's still hard to land a job. The larger agencies receive more than 1,000 applications for internships every year, and many agents don't want to help someone who could one day be their competition.
Neff says it's a catch-22 because "you have to be in it to learn the business."
"Lawyers do well because there are more accidents than there are lawyers," said Kenneth Shropshire, author of "The Business of Sports Agents" and "Agents of Opportunity: Sports Agents and Corruption in Collegiate Sports." "But it seems like there are more agents than there are players."
Though he doesn't promise riches, Lashbrook believes that anyone who wants to become an agent should have the opportunity. As for his model of making his students part of his agency, he says other agents are laughing at him now, but he'll get the last laugh.
"It takes time," Lashbrook said. "Southwest had to fly to San Antonio first before they could fly to Oklahoma."
Darren Rovell, who covers sports business for ESPN.com, can be reached at darren.rovell@espn3.com.
“People that eat food think they can run a restaurant. And there are many sports fans who say, 'If I can't get a job with a team, I'll just be an agent.' It's just much harder than that.”
— Agent Rick Smith, Priority Sports
Copyright 2003-2004, Sports Management Worldwide, All rights reserved.
Ward Coffman of Sports Management Worldwide
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