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					NFLPA Financial Advisors
  NCAA Presentation
    Miami, Florida
        NCAA Legislation
NCAA 2.9: The Principle of Amateurism

“…Student participation in intercollegiate
  athletics is an avocation and student-
    athletes should be protected from
     exploitation by professional and
         commercial enterprises.”
             What is an Amateur?
         NCAA Bylaw 12.1.1: Amateur Status
A student-athlete loses his/her amateur status if the SA:

  Uses his or her athletics skill for pay in any form;

  Accepts a promise of pay (for now or in future);

  Signs a contract or commitment to play professional

  Receives compensation from a professional sports
  organization based on athletics talent;
         What is an Amateur?

 Competes on a professional team;

 Enters into a draft and is drafted subsequent to
 collegiate enrollment; or

 Enters into an agreement with an agent (oral or
    NCAA Agent Legislation

           NCAA Bylaw 12.3.1

“Student-athlete is ineligible if he/she has an
oral or written agreement with an agent.”
    NCAA Agent Legislation

           NCAA Bylaw

  It is not permissible for a student-athlete or
prospective student-athlete to be represented by
an agent in the future, regardless of whether the
       agreement is now or in the future.
  NCAA Agent Legislation
         NCAA Bylaw

  A prospective student-athlete or student-
athlete (including friends or relatives) cannot
 accept any benefits from an agent, financial
     advisor, runner, or any other person
     associated with an agency business,
   regardless of the value of the benefit or
              whether it is used.
     NCAA Agent Legislation
             NCAA Bylaw 12.3.2

Securing advice from a lawyer concerning a
proposed professional sports contract shall not be
considered contracting for representation by an
agent under this rule, unless the lawyer also
represents the individual in negotiations for such a
   A similar analysis can be made for the
   financial advisor. As long as their activities do
   not include marketing the individual, then the
   advisor would not be considered an agent.
   NCAA Financial Advisors
The     NCAA      Sports   Liaison    Committee
recommended that the Council sponsor
legislation for the 1996 convention that would
prohibit     student-athletes    from    making
agreements with financial advisors.
   It was noted that a financial advisor who
   acts as an agent could be treated as an
   agent for purposes of applying NCAA
     NCAA Financial Advisors
It was voted.

  “That the Council issue an official
  interpretation, rather than sponsor legislation,
  to confirm the fact that a financial advisor can
  be treated as an agent for purpose of the
  application of NCAA legislation if he or she
  acts as an agent.”
     NCAA Student-Athlete
     Reinstatement Directive
Divisions I and II.
Committees noted that agent violations are considered
more serious than general extra-benefit violations of
Bylaws 16 (Awards, Benefits and Expenses for Enrolled
Student-Athletes) or (Preferential Treatment,
Benefits or Services); therefore, the monetary
guidelines should be more stringent than the extra-
benefit guidelines.

Committees directed the staff to impose a minimum 10
percent withholding condition for any type of
impermissible benefit received by a student-athlete
from an agent. (December 2000)
    NCAA Student-Athlete
    Reinstatement Directive
Division I.
In regard to agent violations, the committee
affirmed that the staff should consider the
following issues: the value of the benefit
received by the student-athlete, the student-
athlete’s awareness of the person’s agent
status and the student-athlete’s involvement
in obtaining the benefit. (December 2000)
NCAA Disability Insurance Policy
1. NCAA Bylaw
   An individual may borrow against his/her future
   earnings potential from an established, accredited,
   commercial lending institution, exclusively for the
   purpose of purchasing insurance (with no cash
   surrender value) against a disabling injury/illness that
   would prevent the individual from pursuing a chosen
   career, provided a third party (including a member
   institution’s athletics department staff members, pro
   sports counseling panel, or boosters) is not involved
   in arranging for securing the loan.
NCAA Disability Insurance Policy

   The student-athlete shall report all
   transactions and file copies of any loan
   documents associated with disability
   insurance with the member institution,
   regardless of the source of the collateral for
   the loan.
   The student-athlete also shall file copies of
   the insurance policy with the member
   institution, regardless of whether a loan is
   secured to purchase the insurance policy.
 NCAA Disability Insurance Policy
2. Catastrophic Injury Insurance Program.

   The NCAA sponsors this program for student-
   athletes that are catastrophically injured while
   participating in a covered intercollegiate
   athletics activity.
    NCAA Disability Insurance Policy
3. Exceptional Student-Athlete Disability Insurance.

     Exceptional student-athletes in the sport of football, men’s and
     women’s basketball, baseball, and men’s ice hockey.

     Allows qualifying student-athletes to purchase disability
     insurance contracts with pre-approved financing.

     Provides the student-athlete with the opportunity to protect
     against future loss of earnings as a professional athlete due to
     a disabling injury that occurs during the collegiate career.

•   Campus registration.
•   Providing information regarding other
    financial advisors.
•   Case specific.
John an enrolled men’s baseball student-athlete was
    drafted by a professional baseball team.
Prior to the Major League Baseball (MLB) Draft, John’s
    NCAA college sent out letters to all MLB teams which
    had expressed interest in drafting John.
The letter stated that all contact with John should be made
    via John’s uncle (John’s legal guardian) or the college
    baseball coach.
In accordance with NCAA rules, John and his uncle secured
    the services of an advisor. John’s uncle made it clear
    that the advisor was not to contact any professional
    sports teams on John’s behalf.
Prior to the MLB Draft, the advisor contacted five
  professional sports teams on John’s behalf and did the

      Asked whether or not John would be drafted;

      Asked if they would pick John in the MLB Draft if
      were available to them; and

      Was told by MLB team representatives that John
      would go higher in the MLB Draft than their picks.

John’s uncle had directly contacted two MLB teams that
  were in a position to pick John. John’s uncle was
  unaware of the advisor’s team contacts and did not use
  this information to facilitate his contacts.

Is the conduct of the advisor permissible under NCAA rules?
No. The NCAA college determined that the actions of
the advisor were contrary to NCAA legislation and that
an NCAA violation occurred.

NCAA legislation permits a student-athlete to seek
legal or financial advice from an individual provided the
individual does not have any direct contact with
professional sports teams on behalf of a prospective or
enrolled student-athlete.

In this scenario, the conduct of the advisor violated
NCAA rules when the advisor contacted directly the
professional sports teams on John’s behalf.
NCAA Legislation defines a prospective student-
 athlete as:
“…a student who has started classes for the ninth
 grade. In addition, a student who has not started
 classes for the ninth grade becomes a prospective
 student-athlete if the institution provides such an
 individual (or the individual's relatives or friends)
 any financial assistance or other benefits that the
 institution does not provide to prospective
 students generally.
NCAA Legislation Continued . . .
    An individual remains a prospective student-athlete
              until one of the following occurs
                    (whichever is earlier)”:

     (a) The individual officially registers and enrolls in
         a minimum full-time program of studies and
         attends classes in any term of a four-year
         collegiate institution's regular academic year
         (excluding summer); or

    (b) The individual participates in a regular squad
        practice or competition at a four-year
        collegiate institution that occurs before the
        beginning of any term; or

    (c) The individual officially registers and enrolls
        and attends classes during the summer prior to
        initial enrollment and receives institutional
        athletics aid.
Evan, a prospective baseball student-athlete, prior to enrolling at
  an NCAA school did not receive NCAA rules education.
Evan was drafted in the first round of the Major League Baseball
  (MLB) Draft.
Evan secured an advisor and did the following:
   1)Entered into an agreement to have the advisor represent him.
   2)Participated in several baseball tryouts arranged by the
   3)Signed a professional baseball team contract and received
     benefits from the MLB team.
   4)Was evaluated by the MLB team physician and was not given
     medical clearance to compete; the MLB contract was
   5)Decided to enroll at an NCAA college and pursue playing
     collegiate baseball.
                 Are there any NCAA violations?
         Yes. Evan compromised his amateur
         status by engaging in the following:

a) Signing an MLB professional contract;

b) Entering into an agreement with the advisor to
   represent him; and

c)   Receiving benefits from a professional MLB team.
During the summer session and prior to his initial full-time
  enrollment at the NCAA college, Brandon, a football student-
  athlete failed to inform his NCAA college that he had obtained a
  disability insurance policy, and the institution failed to obtain
  appropriate records of such policy.
Brandon obtained an unsecured loan in order to execute the
  insurance policy on a deferred-payment basis and based
  primarily upon his future earnings as a potential professional
Brandon obtained the loan from a financial advisor, who informed
  him that it was permissible under NCAA legislation to execute
  the insurance policy.

Are the actions of the financial advisor in assisting Brandon
 with securing a loan for disability insurance permissible
               pursuant to NCAA legislation?
No. It is a violation for the financial advisor to have
assisted Brandon in obtaining an unsecured loan in
order to execute the insurance policy on a deferred-
payment basis and based primarily on Brandon’s
future earnings as a potential prospective
professional athlete. Additionally, Brandon failed to
notify his NCAA college about the loan and insurance
policy and the NCAA college was unable to verify
that the loan had been executed through an
established, accredited commercial lending source
prior to the policy being issued to Brandon.
Deana Garner, Angie Cretors & John Shukie
 NCAA Agent, Gambling and Amateurism

              PO Box 6222
         Indianapolis, IN 46206