A reminder from the FTC: If you represent student athletes, comply with SPARTA

If you represent, coach, recruit, or otherwise work with student athletes, you probably know about the Sports Agent Responsibility and Trust Act (SPARTA). Since 2004, SPARTA has protected student athletes as they navigate contracts with sports agents and agencies.

Today, the FTC sent letters to 20 universities — all with NCAA Division I sports programs — asking if sports agents representing their student athletes are notifying the schools as required under SPARTA.

What is the FTC looking for? If you’re a sports agent who works with student athletes, you must: 

• Provide the student athlete with the required disclosure — including specific language requirements — before entering into an agency contract.
• Promptly notify the student athlete’s school about the agency contract. You must do this either within 72 hours of entering into the contract or before the next athletic event the student athlete is eligible to participate in, whichever is earlier.
• Be truthful with student athletes. Sports agents are prohibited from recruiting a student athlete by using false or misleading information, making false promises, or providing anything of value to the athlete — or anyone associated with them — before entering into an agency contract.

The stakes are high for sports agents: up to $53,088 in civil penalties for each violation of SPARTA. So now is the time to make sure you fully understand and comply with the law. And if you see others breaking the rules, report them to the FTC.