Rich Paul is the agent of record for NBA superstar LeBron James. If Paul earns the full 4% commission (the National Basketball Players Association caps agent fees at 4%) from James' 2014-15 on-court income, then Paul will receive a total fee of $825,776 for that one season. But the vast majority of certified agents do not represent players that have the talents or earning potential of James. While the annual dues for Paul to remain certified are insignificant in light of his earnings, for other agents that expense can be a major hurdle to keep their practices alive.
On June 10, basketball agents were advised that there is a movement to drastically increase the annual fees for representing NBA players. Certified agents currently pay $1,500 per year to remain in good standing with the union.
According to the email sent by NBPA Deputy General Counsel Ramya Ravindran, the Board of Player Representatives discussed and preliminarily approved raising agent dues beginning with the upcoming NBA season. The expected increase in agent dues would be as follows:
Agents with 0-9 players: $5,000
Agents with 10-19 players: $10,000
Agents with 20 or more players: $15,000
Ravindran offered agents to contact her if they had any questions. Apparently, the certified representatives had more concerns than questions for Ravindran.
The NBPA sent a follow-up, much more thorough email, within 24 hours of delivering the original email containing expected increases of agent dues.
"We have received feedback from several of you – both positive and negative – as to the agent dues notice sent yesterday," began the second email. "As many of the questions we received reflect some confusion as to the structure of NBPA, we hope the information provided below helps clarify the decision that was made."
The lengthy email indicated that the NBPA Executive Committee, of which Chris Paul serves as President and LeBron James acts as First Vice President, recommended to the Board of Player Representatives that it consider a proposal to increase agent dues. This suggestion was made at the Board's regularly scheduled meeting during All-Star Weekend.
"During that meeting, the players made clear their view that the time had come to raise agent dues," said the email. "Agent dues have remained the same for nearly two decades."
The NBPA claims that several agents have expressed support for raising agent dues. However, many more agents appear to be displeased with the development.
Currently, the Major League Baseball Players Association charges a flat $1,500 annual fee for representatives who wish to maintain general certification. The National Football League Players Association has a tiered system. Agents who represent less than 10 active NFL players must pay an annual fee of $1,500. Those who represent 10 or more active players pay $2,000 per year to maintain their certification.
Darren Heitner is a lawyer and the Founder of South Florida-based HEITNER LEGAL, P.L.L.C., which has a focus on Sports Law and Entertainment Law.
