By Christopher R. Deubert, Senior Writer
In March 2026, NBA player agent Daniel Hazan obtained a $1 million dollar default judgment against former NBA player Malik Beasley arising out of Beasley’s alleged failure to repay a $650,000 payment made by Hazan to Beasley that was ostensibly an advance payment on marketing commissions. The lawsuit and the loan were largely the result of failures by the National Basketball Players Association (NBPA) to sufficiently protect its player members. In September 2025, while the lawsuit was ongoing, the NBPA amended its agent regulations (last updated in 2019) to prevent the Hazan-Beasley situation from repeating itself, among other substantive changes.
Regulating Marketing Activities
The NBPA had previously taken a hands-off approach to regulating the ways in which its certified agents provide marketing services to players. Viewed narrowly, this approach made sense – the NBPA’s authority to regulate agents is derived from its status, under the National Labor Relations Act, as the exclusive representative of players for purposes of negotiating with NBA teams concerning their wages and terms and conditions of employment.
However, in reality, agents have provided services far broader than that for decades and those services are intermingled with the agents’ core duties of negotiating player contracts.
Consequently, the NBPA’s regulations now explicitly state that they govern “the provision of any other services on behalf of a Player, including, but not limited to, the negotiation of marketing or sponsorship agreements.”
The NBPA’s revised approach brings it line with the approaches of the other major unions in professional sports – the MLBPA, NBPA, and NHLPA – all of whom generally regulate the marketing activities of their agents. Indeed, the amended regulations state that the NBPA examined the agent regulation systems of these unions in making its revisions.
Barring Loans as Inducements
The regulations previously prohibited an agent from “[p]roviding or offering a monetary inducement (other than a fee less than the maximum fee contained in the SPAC) to any Player (including a rookie) or college athlete to induce or encourage that person to utilize his services.”
Nevertheless, consistent with the NBPA’s expanded approach over marketing activities, this provision now states that “[f]or clarity, such prohibition shall include, but not be limited to, any loan or advance (including a ‘marketing advance’), except as permitted by these Regulations, the SPAC, or NBPA policies that may be issued from time to time.”
The advance from Hazan to Beasley is thus now prohibited.
Expanded Scope of Arbitration
Hazan was able to sue Beasley in federal court because of the NBPA’s narrow approach to what type of disputes between players and agents needed to be resolved via the NBPA’s arbitration process. The jurisdictional scope of that process has now been expanded to cover “any other dispute [that] arises between a Player and the Agent (or any entity related to the Agent), including but not limited to, with respect to the meaning, interpretation, or enforcement of a marketing or other representational agreement (with the exception of disputes regarding FIBA or other international representation agreements).”
The regulations now also require that the parties keep the arbitration and related filings confidential. While arbitrators are typically bound by applicable rules to confidentiality, the parties are not unless such a requirement is included in their arbitration agreement.
Agent Certification
The regulations added three new grounds for denying an agent certification: (1) “[h]old[ing] oneself out to the public as an Agent prior to certification under these Regulations; (2) “[e]ngag[ing] in acts involving moral turpitude; and (3) “[e]ngag[ing] in any other similar conduct that would render him or her unfit to serve as an Agent.”
The regulations also now permit agents who do not represent players with an active NBA player contract from designating themselves as “Inactive.” Inactive agents cannot negotiate NBA player contracts, are excused from attending the NBPA agent seminar, and pay a lesser agent fee. Inactive agents can become active again by again satisfying these requirements.
Active agents who have not negotiated an NBA player contract in the last five years will automatically move to inactive status unless they complete an NBPA-administered educational course.
Agent Termination
The regulations previously provided that either the agent or player could terminate their Standard Player-Agent Contract (“SPAC”) upon 15 days’ written notice. Now, either party can terminate the SPAC immediately upon written notice.
However, the new regulations prohibit the player from entering into a SPAC with a new agent for five days, the same cooling off period required by the NFLPA agent regulations. During that time, the regulations now provide that “the NBPA may require that the Player first consult with the NBPA regarding the facts and circumstances of such termination.”
A terminated agent must now also provide the player with “copies of all records or files the Agent maintained on behalf of the Player.”
A More Muscular Union
The NBPA’s expanded scope of authority is a welcome and overdue application of its power over agents. While enforcement of the regulations will always be challenging, it is important that the written regulations include broad provisions – like those added by the NBPA – to deter and address agent misconduct and to protect players.
Deubert is Senior Counsel at Constangy, Brooks, Smith & Prophete LLP
