By Robert L. Clayton and Michael B. Ackerstein
Illinois became the 42nd state to adopt athlete-agent regulations after Governor Pat Quinn signed the Illinois Athlete Agents Act into law on July 14th.
The Illinois Athlete Agents Act regulates the registration and conduct of athlete-agents. Once the law goes into effect on January 1, 2011, athlete agents in Illinois will have to register with the Department of Financial and Professional Regulation. The Department will both license agents and investigate unlicensed activity.
First time violators of the Act will be charged with a Class A criminal misdemeanor and subsequent offenses will constitute a Class 4 felony. A Class 4 felony conviction in Illinois is punishable by up to 3 years in prison. Violators also face a civil penalty of up to $10,000 and educational institutions suffering damages as a result of agent violations are granted a right of action against the agent.
“This new law will protect young athletes as they move forward in their careers,” Governor Quinn said in a press release. “By working with the Uniform Law Commission on this legislation, we are making sure that our laws are consistent with those throughout the country.”
Under the terms of the Act, agents are prohibited from inducing a student-athlete to enter into a contract by furnishing items of value to the student-athlete or the student-athlete’s family. Agents are also required to notify student-athletes that signing an agency contract for a particular sport may jeopardize the student-athlete’s eligibility in that sport. Additionally, agents must inform student-athletes that the student-athlete can cancel an agency contract within 14 days after signing it.
The Illinois Act is a variation of the Uniform Athlete Agents Act (“UAAA”) that has already been implemented in 39 states. Though the UAAA varies slightly by state, the Act establishes rules regarding agent licensing and conduct and outlines penalties for violators. The UAAA was drafted in the fall of 2000 by the National Conference of Commissioners on Uniform State Law with input from the National Collegiate Athletic Association. Legislation to enact the UAAA is pending in California and New Jersey.
Robert L. Clayton is the Chair of the Jackson Lewis Sports Compliance Group in the Washington D.C. Region Office.
Michael B. Ackerstein is a Research Analyst in the Jackson Lewis Sports Compliance Group in the Washington D.C. Region Office.
