Sports Agencies and Management
Take a swing at the lucrative business of sports agencies and management
Sports management has become very big business. Top athletes are signing multimillion dollar contracts for both play and endorsements. Sports agencies and management firms hammer out the terms of the contracts, find products for clients to endorse and keep a watch on their finances. In addition, many athletes rely on their sports management companies to handle much of their day-to-day existence, from paying the mortgage to meeting their flight.If your company is interested in a piece of the sports management action, here is a key to the business: stay up on trends in athlete representation. Note changes in owner-athlete relations as well as public perceptions of athletes. As you build a business plan for sports representation, consider the following:
1. Today's contracts are complex, with deferred payments and tax and insurance clauses. Sports management agencies need an expert on contracts.
2. Some athletes become linked to the product they endorse, for better or worse. It is crucial for sports agencies to take care in selecting the right endorsements.
3. Responsibilities range from finding a babysitter to buying a luxury car and everything in between. Sports agents must be versatile.
Hire a contract specialist as part of your sports agency team
A major duty in athlete representation is negotiating the contract. In addition to the give-and-take about money and incentives, the negotiations include buyout clauses, tax shelters and other complicated elements. Your agency will need broad, in-house expertise or access to experienced consultants.
Try: Contract Consultants will give you a leg up on creating specialized contracts. Engage their services, which range from contract templates to individual consultations. Francis L. Dean specializes in insurance for professional athletes. Check the website for information on the specifics for your client or ask for a consultation.
Equip your sports management company with an image consultant
Often endorsements, even playing services contracts, are strongly influenced by a player's image. Prepare your client for public situations such as interviews, speeches and media events. Include an "image consultant" on your sports management company's team.
Try: Find an image consultant in your area on the Association of Image Consultants International website. Gloria Starr specializes in image consulting for professional athletes and offers a "finishing school" just for them.
Finding clients for your sports management business
Now that your company knows what to do in the sports management business, you need clients. Enroll your recruiters in a course offered by sports management agencies. Stress the importance of approaching the recruiting task in the "right" way, with respect for the athlete and an honest appraisal of your firm's services.
Try: The professionals at Sports Management Worldwide offer a wealth of practical information about the sports agent business. Enroll in their Athlete Management Course to learn methods for finding and signing clients. The online course at Become a Sports Agent includes a discussion of recruiting rules, including unethical behavior. Study the other topics they offer.
- Sports marketing and management agencies aren't limited to representing just athletes. Some also represent individuals from other sectors, such as entertainment and media.
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