Advice for Sports Agents
Being a sports agent, is an all-consuming, 24/7, stressful job. It’s a role that demands professionalism, specialist knowledge and responsibility for the careers of often, young, inexperienced clients, who they have to nurture, manage and protect.
Talent can take many to the top, but sponsorships and endorsements can provide even more exposure and higher earnings. According to Forbes, Roger Federer is the highest paid athlete, earning $6.3 million for winning tennis tournaments and an incredible $100 million in endorsement deals. Footballer Cristiano Ronaldo is a close second, earning $105 million; with $45 million of this amount earned from endorsements.[1] And in the background, are the sports agents, looking after the best interests of their clients.
Lucrative sponsorships and endorsements may be eye catching, but agents also oversee complex contract negotiations, counter offers and bonus fees, not to mention managing reputations and the media.
In the midst of all this, many agents don’t realise that they have liability exposures. So specialist cover is a must. Problems that can arise include:
- Breaches of brand, contract or intellectual property rights
- Poor contract negotiation
- Confidentiality breaches
An example that demonstrates the impact of a wrong decision made by sports agents was when Gilbert Kacou and Czech Dalibor Lacina allegedly received secret commissions totalling in excess of £8 million. Footballer Wilfried Bony claimed that his “football agents who used to represent him received under-the-table cash between 2013-2015”.
“Judge Mark Pelling QC told the High Court: "The factual allegation is that, while ostensibly acting on his behalf in negotiations concerning his contract of employment with Swansea, (the agents and their companies) received secret commissions."[2]
Professional Indemnity Cover for Sports Agents
Professional Indemnity cover can help to minimise the financial and reputational impact on an agent or agency. CNA Hardy’s Professional Indemnity cover is tailored to meet the needs of the individual client. With our experience and knowledge we offer a bespoke service and package that best suits the sports agent.
At CNA Hardy, we have a specialist team of underwriters across the UK and Continental Europe; over 20 industry specific wordings solutions; and Lloyd’s capability to write broker wordings.
Find out more about our specialist PI Capabilities, core appetite and covers here.
Harry Rowe
Underwriter, Professional Indemnity
[1]https://www.forbes.com/athletes/#5aa6651a55ae
[2]https://www.bbc.com/sport/football/41154099