NFLPA To Require Registration of Financial Advisors

NFLPA to Require Registration of Financial Advisors

Seeks to force agents to choose between representation and business sides

New York, November 1, 2001 -- The National Football League Players Association is trying to crack down on "financial snakes" that are taking advantage of its players. According to CBS Sportsline, in an effort to better protect NFL players from unscrupulous agents and financial advisors who have too much control over the player’s financial affairs, the union is finalizing a plan that would "force agents to make a decision between being a player representative or a financial advisor," preventing one man from "handling the entire fortune and financial future of players."

In addition to the new rule on dual roles, the article notes that the NFLPA is going to require registration of financial advisors. An NFLPA spokesperson said "this will provide a safer umbrella if we can keep an eye on the advisors. This will now provide a player with the list of guys who we have registered and we think are legitimate financial advisors -guys who have nothing to hide, who have completely registered their information and background." The report notes that because the financial advisors will not be certified, the NFLPA cannot punish them for a breach, yet through an agreement with the Securities and Exchange Commission to "monitor curious transactions and potential schemes" by an advisor, the SEC can mete out its own punishments.

The NFLPA is appealing directly to financial advisors for assistance with the new rules.

The other professional sports leagues would be wise to look to this program as a model for the right way to handle those who feed on the multimillion dollar salaries of athletes. This and programs like it might go a long way to restoring the name of legitimate agents and financial advisors whose reputation is less than stellar.

Source:

CBS Sportsline—Jay Glazer
Matthew Roberts