Wednesday, November 3, 2010

Agents $$$$$

Agents by the numbers from Jack Bechta's post on NFP...

Rosenhaus Sports: 146 (2 agents)
CAA Football: 104 (2 agents)
Athletes First: 91 (5 agents)
Priority Sports &Entertainment: 84 (5 agents)
SportsStars: 78 (7 agents)
Octagon: 52 (6 agents)
All Pro Sports &Entertainment: 56 (2 agents)
France All Pro Athlete Management: 53 (1 agent)
Agencies with 40 to 49 clients: 6
30 to 39: 10
20 to 29: 9
10 to 19: 31 (I’m in this group with 17 clients.)
3 to 9: 100

The 9 largest agencies represent about 671 players. There are another 55 firms, representing between 10 and 49 clients each, for a total of 900 players. There are roughly 2,000 players on 53-man rosters, practice squads and IRs. That leaves about 100 firms to represent 430 players who are mostly sitting at the bottom of a roster or on the practice squad.

According to the Players Association, the average agent fee per player is about 2.9%. Even though players can negotiate their fees, which are capped at 3%, players are willing to pay their agents close to the max.

It is typical for many agents to reduce fees for first round picks. For example, it is a common practice to reduce the fee for a top 10 draft pick to 2%.

So, based on these numbers, what are agents making?

With an average salary of about $2M per active player, an agent with 20 active players may gross an estimated $1.16M. An agency with 50 clients could gross $3M per year or more. For a firm like Athletes First, which represents several highly compensated starting QBs, it is probably much higher.

An agent’s overhead can range anywhere from 10% to 40% of gross fees. The largest expenses are usually Combine training, travel, office and staff. For example, an agency may spend on average about $15,000 to train each new draft pick.

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