Module XI: Gambling and Sports Agents Issues in Sport



Similar documents
SPORTS WAGERING RULES EDUCATION SESSION. SMC Compliance Office

NCAA REGULATIONS. The following are general NCAA guidelines to help protect your amateur status:

UTPB Compliance Nove b m er Topic: Gambli bling d an Sports W i ager ng

Summary of NCAA Regulations NCAA Division II

Summary of NCAA Regulations NCAA Division III

VOLUNTEER COACHING CONTRACT

NCAA RULES AND REGULATIONS GUIDEBOOK FOR PARENTS, ALUMNI, FRIENDS, SEASON TICKET HOLDERS AND DONORS OF MICHIGAN TECHNOLOGICAL UNIVERSITY

A SHORT GUIDE TO THE IRISH FOOTBALL ASSOCIATION BETTING RULES. Your reputation! Your responsibility! Your career!

NCAA Student-Athlete Gambling Behaviors and Attitudes: Supplementary Tables May 2013

The European Lotteries

NCAA COMPLIANCE INFORMATION

THE UNUSUAL PATH TO INEVITABLE SPORTS BETTING LEGALIZATION B Y D A N I E L W A L L A C H

Student-Athletes. Guide to. College Recruitment

August 31, 2005 Phone: (303) / (303) DENVER Colorado Attorney General John Suthers and Colorado Limited Gaming Control

SWIMMING AUSTRALIA LIMITED GAMBLING, BETTING AND MATCH FIXING POLICY. Swimming Australia Limited - Gambling, Betting and Match Fixing Policy Page 1

CODE OF CONDUCT: BETTING AND RELATED ACTIVITY

STUDENT-ATHLETES: ELIGIBILITY

National Policy on Match-Fixing in Sport

CRIME PROFILE SERIES ORGANISED CRIME IN PROFESSIONAL SPORT

PROSECUTORS, KNOW YOUR CRIMINAL DEFENSE LAWYER *

Thank you for your attention to these issues. Higher Ed, Not Debt

(septembre 2009) 30 %

A Guide to Selecting an Attorney if Your Child Has Been Sexually Violated

A T T O R N E Y AT LAW

Department of Legislative Services 2012 Session

Medical Malpractice VOIR DIRE QUESTIONS

RFU REGULATION 17 - ANTI-CORRUPTION AND BETTING

NCAA DIVISION II COMMITTEE FOR LEGISLATIVE RELIEF POLICIES AND PROCEDURES

Drug Testing and Student-Athletes in Nebraska

Copyright 2012, General Dynamics Information Technology. All Rights Reserved.

Necessary Contact With Prospects In A RecruitingAdverse College

1/ The opening of the French market for online games. Chaire Sorbonne-ICSS

How Do People Settle Disputes? How a Civil Trial Works in California

SUPERIOR COURT OF THE STATE OF RHODE ISLAND PROVIDENCE COUNTY

Gambling and the Law : Are Daily Fantasy Sports Legal?

A Time to Tell Troop Meeting Guide

Update on Sports and the Law: The Future of Sports Betting and Daily Fantasy Sports in Mississippi. Gaming Section MS Bar CLE June 17, 2016

This information is provided by the

UNIVERSITY OF NEW HAVEN DEPARTMENT OF ATHLETICS Alcohol, Tobacco, and Other Drugs Substance Abuse Policy (ATOD)

COACH S PLAYBOOK ON SUBSTANCE ABUSE

ONLINE WAGERING IN AUSTRALIA NAGS CONFERENCE GOLD COAST NOVEMBER 2014

Everything You MUST Know. Before Hiring a Personal Injury Lawyer!

Domestic Violence: Can the Legal System Help Protect Me?

Chapter 9 Uniform Athlete Agents Act

Code of Conduct on Sports Betting for Players

YesFreeCash.com Free Bonus Hunting Tutorial For Beginners

SAN FRANCISCO RETIREMENT FAQS

WEBER STATE UNIVERSITY PUBLIC INFRACTIONS DECISION NOVEMBER 19, 2014

COALITION OF MAJOR PROFESSIONAL & PARTICIPATION SPORTS SUBMISSION TO THE DEPARTMENT OF BROADBAND, COMMUNICATIONS AND THE DIGITAL ECONOMY

League of Denial Video guide and questions I

Career Paths Thomas Harvey Interview by Wendy Werner

New Zealand Football Code of Conduct

The Truth About Issue 2

AT&T s Code of Business Conduct

Registration of Athlete Agents

Credit Cards and Consumer Debt

Coaching Ethics Code

Self-Defense and Predominant Aggressor Training Materials

RE: Inquiry into the advertising and promotion of gambling services in sport

MOR 479: The Business of Sports Spring :00-9:50 AM, MW, HOH 422 #16684

Destiny Media Technology s Code of Conduct

Reforming Florida Higher Education

NCAA GUIDELINES FOR CAMPS & CLINICS

ISBA Advisory Opinion on Professional Conduct

How To Choose Between The Law Firm And The Mob In \"The Firm\"

How To Regulate Sports Betting In India

A THEORETICAL ANALYSIS OF THE MECHANISMS OF COMPETITION IN THE GAMBLING MARKET

CALIFORNIA INSTITUTE OF TECHNOLOGY PUBLIC INFRACTIONS REPORT July 12, 2012

NCAA RULES MEDIA AND PRIVATE INTERNET WEBSITES

The Top Things You Can Do To Screw Up Your Colorado Car Wreck Case

CLARK ATLANTA UNIVERSITY PUBLIC INFRACTIONS REPORT JANUARY 24, 2014

Ethical Gambling: policies of gambling in modern societies

A Professional Handicapper Shares His Secrets On Betting Football, Basketball and Baseball For A Living

ALIANTE RACE AND SPORTS BOOK HOUSE RULES

Why Require Coaches to be Certified? Tim Flannery, CMAA, CIC Former Director, NFHS Coach Education

Gambling and Problem Gambling Prevalence Among College Students in Florida July 2008

Free Legal Consumer Guide Series

Business Ethics and Code of Conduct. Executives and employees. Global Connections Pcl.

The Coalition of Major Professional and Participation Sports (COMPPS) consists of the following organisations:

TABLE OF CONTENTS. ROULETTE FREE System # ROULETTE FREE System #

Worldwide Anti-Corruption Policy

DOMESTIC VIOLENCE IN FLORIDA

A Practical Guide to. Hiring a LAWYER

GAMBLING LICENSING ABIGAIL HUDSON NOVEMBER 2015

Michigan State University Office of Compliance Services Agent/Advisor Registration Application

CODE OF CONDUCT as adopted by the Board of Directors on 20 February 2015

Section I: USA Gymnastics Membership Requirements New additions are highlighted

SportsBusiness Journal Sports Business Resources your sports business news and information source.

Transcription:

Module XI: Gambling and Sports Agents Issues in Sport This module focuses on two stakeholder groups in sport and how they affect other stakeholders and create issues in sport and society. Gambling can be a source of fun and a source of heartache. Sorting out how some are harmed and how some are benefited provides the basis for analyzing how gambling affects sport. Whose values, important consequences, rights or responsibilities should determine the practices of our society? Sports agents have a fiduciary responsibility to their clients. They also are bound by rules on how they are to recruit college athletes to represent. When agents break these rules they create issues in sport and society that are difficult to resolve. In this module, we will see, analyze, generate some options and evaluate the options regarding gambling and sports agents. Learning Objectives and How to Achieve Them After completing this module you should know and be able to do the following: 1. Identify the core values, important consequences and rights and responsibilities of stakeholders in sport relating to issues associated with gambling on sports and sports agents.[this is achieved through the readings, video and web site.] 2. Provide examples of threats to the integrity of sport posed by gamblers and gaming organizations. [This is achieved through the readings, video and web site.] 3. Identify the legal and illegal ways to bet on sport in the USA. [This is achieved through the readings, video and web site.] 4. Identify legal and illegal activities of sports agents. [This is achieved through the readings, video and web site.] 5. Provide examples of harm to athletes due to unethical sport agents. [This is achieved through the readings, video and web site.] 6. Identify benefits to sport that arise from sports betting and the proper activity of sports agents. [This is achieved through the readings, video and web site.] 7. Critically think about sport by applying SAGE to issues arising from gambling on sports and unscrupulous sports agents. [This is achieved through the readings, video and web site.] 1. Module Specific Information 1.1 Here is a recent statement by the NCAA regarding sports gambling. The NCAA s Position on Gambling The NCAA opposes all forms of legal and illegal sports wagering. Sports wagering has the potential to undermine the integrity of sports contests, and jeopardizes the welfare of student-athletes and the intercollegiate athletics community. Sports wagering demeans the competition and competitors alike by a message that is contrary to the purposes 1

and meaning of sport. Sports competition should be appreciated for the inherent benefits related to participation of student-athletes, coaches and institutions in fair contests, not the amount of money wagered on the outcome of the competition. For these reasons, the NCAA membership adopted NCAA Bylaw 10.3 prohibiting athletics department staff members and studentathletes from engaging in gambling activities as they relate to intercollegiate or professional sporting events. NCAA Bylaw 10.3 stipulates that staff members of the athletics department of a member institution and student-athletes shall not knowingly: (a) Provide information to individuals involved in organized gambling activities concerning intercollegiate athletics competition; (b) team; Solicit a bet on any intercollegiate (c) Accept a bet on any team representing the institution; or (d) Participate in any gambling activity that involves intercollegiate athletics or professional athletics, through a bookmaker, a parlay card or any other method employed by organized gambling. (Revised: 1/9/96, 1/14/97) The NCAA s Interpretations Committee clarified the scope of Bylaw 10.3 to preclude a student-athlete from soliciting or accepting a bet for a non monetary material item (e.g., shirt, dinner) that has tangible value. The committee noted, however, that institutions that compete against each other may agree to participate for a tangible item (e.g., governors cup), provided no student-athletes receive any tangible item. (1996 Telephone Conference No. 14, November 26, 1996) The Interpretations Committee also decided that the prohibition against student-athletes and athletics department staff members participating in gambling activities associated with professional sports events is applicable only to those sports in which the Association conducts championship competition, Division I-A football and emerging sports. (1997 Telephone Conference No. 2, March 13, 1997) In June 1995, the NCAA Eligibility Committee, determined that higher conditions for restoration of eligibility should occur in cases involving gambling and instructed NCAA eligibility staff to begin imposing such standards immediately. Accordingly, the staff reviews prior case precedent from June 1995 to the present in determining the appropriate conditions for restoration involving such cases. (Courtesy NCAA) 1.2 From the 1998-99 NCAA Guide for the College-Bound Student Athlete! During high school, you might be contacted by a player agent. A player agent may want to represent you in contract negotiations or for commercial endorsements if you show the potential to be a professional athlete. Agents may contact you during your highschool years to gain an advantage over other individuals who may wish to represent you when your college eligibility expires. Many times, these individuals will not represent themselves as agents, but rather as someone interested in your overall welfare and athletics career. These individuals also may try to give gifts or benefits to you and your family. XI-2

NCAA rules don t prohibit meetings or discussions with an agent. However, you jeopardize your college eligibility in a sport if you agree (orally or in writing) to be represented by an agent while in high school or college, regardless of whether the agreement becomes effective immediately or after your last season of college eligibility. Also, receiving any benefits or gifts by you, your family or friends from a player agent would jeopardize your college eligibility. If an individual contacts you about marketing your athletics ability, please be careful. If you have concerns about a player agent, contact your high-school coach, director of athletics or the NCAA national office for assistance. (courtesy of the NCAA) 2. Key Terms and Concepts legal betting on sport: only legal in Nevada integrity of the game: all the qualities necessary to believe in true competition sports agent or representative: the legally appointed individual who negotiates on behalf of an athlete. 3. Brief Summary of Voices in Sport and Society Readings Panel: Scruples Denied? pgs. 263-273: Panel: Panel: Gambling Not a Problem? Bet on it! pgs. 274-285; Bill Saum, pgs. 286-290. For your convenience, the following are student summaries of most of the readings. It is not, however, a substitute for the original, this is just for review. The following are the key attributes and points from the reading on the panel discussion as they apply to each panelist: 3.1 Panel: Scruples Denied? This panel, presented by top sports agents and journalist such as Armen Keteyan, Thomas Reich, J.D., Ray Anderson, J.D., and Bill Baum, investigates the immoral and illegal tactics and behaviors that the sports agents use to lure and represent the athletes, and suggests ways to eliminate the unethical practices of sports agents, and to prevent them from harming the athletes. The immoral and illegal practices that sports agents use to represent potential athletes include: Violate NCAA regulations to contact college athletes: NCAA, as an organization to regulate college athletics, has regulations that prohibit student athletes from contacting sports agents; otherwise, they will lose their eligibility to play for collegiate sports. Sports agents know that they are not supposed to contact student athletes; however, in order to gain advantage to represent the potential athletes as soon as their collegiate eligibility expires, they violate NCAA s regulation to keep calling student athletes all the times. Some student athletes says they are overwhelmed by calls, and do not know who the agents are. Some sports agents even hire those so-called runners on a college campus to make friends with the student athletes, hang out with them, buy their girlfriends flower, and take them to lunch. Their unethical behaviors not only cause trouble to some student XI-3

athletes, but also damage the interest of the academic institution. Bribe the parents of the student athletes: in order to sign potential student athletes, some sports agents not only contact the student athletes, but also build up relationship with athletes parents by offering gifts and benefits to them. By doing so, the sports agents may jeopardize the students collegiate eligibility, or may force the students to leave the college earlier to become professional athletes. Create unethically disadvantages to other ethical sports agents: Some sports agents make big promises to the prospective clients that they know they cannot fulfill. Their acts may raise the expectation of the student athletes and their family. Therefore, some ethical sports agents are forced to fire their clients after few days of signing because their family will request those offers that promised by the unethical sports agents. For example, they may request two automobiles, and an oldest son to go on their payroll as a trainer for their youngest son. In addition, ethical agents, who follow university policies about contacting them only at appropriate times and not bugging them during the season, will find them at a very competitive disadvantage because every player had made decisions a long time ago. Fail to fulfill their responsibility as a representative: As sports agents, they are supposed to protect the benefits of their clients. However, some sports agents represent a number of players, and what they really care is their own benefits. They take their fees up front, but when their clients need them, for example when they are injured, they just discard them without acting on their behalf to get back the benefits they deserved from the team. Ray Anderson gives an example of his friend Allen Carter who was playing for the Patriots. He suffered a knee injury in a game, and was released by the team without paying him the remaining salary. Allen Carter was on the phone for three days trying to track down his agent, but could not find him because Allen Carter became no value to him. As the sports agents unethical behaviors cause harm not only to the athletes, but also to other ethical sports agents, the participants of the conference suggest ways to eliminate their unethical practices, and try to reinvent the industry. Some suggestions include: Regulate through legislation at the state and federal levels that essentially legislates ethics Laws should be passed to put the unethical agents into jail if they comingle their money with that of their client. Impose heavy monetary penalty to the sports agents if they make promises to perspective clients that they know they cannot fulfill As sports agents play such an important role in the career and future of professional athletes, it is important that all related organizations work together to eliminate the unethical practices of sports agents. Higher ethical standards and guidelines should be XI-4

established, and laws be enforced so that sports agents will fulfill their responsibility and obligation as a representative, but not just taking advantage of the athletes to show me the money. 3.2 Panel: Gambling Not a Problem? Bet on it! The panel was comprised of George Ignatin, an economist from UAB; the aforementioned Saum; Sonny Day, a former mob bookie; The Rev. Dr. David A. Boileau; John Rawlings; and Bernie Horn, from the National Coalition Against Legalized Gambling. George Ignatin Cost-benefit analysis as it applies to sports gambling Raises the question whether gambling or unethical gambling is the real problem Believes that college sports are divided into the commercial and noncommercial Recommended that 1% of total gambling revenues go towards the study of gambling addiction Raises the question if sports gambling is a high profit activity Poses the sport gambling problem in terms of use vs. abuse Holds that just because something is illegal doesn t make it unethical Believes that the NCAA should oppose gambling but not spend a lot of time and effort to prevent it His position can be summarized that he advocates sports gambling in moderation Bill Saum Employee of NCAA for 10 years Read official position of NCAA which opposes all forms of sports wagering illegal as well as legal No person who falls under the jurisdiction of the NCAA may wager on any Athletic events Believes that there definitely is a problem at the intercollegiate level Sees a huge problem in the form of campus bookies A study done through U of Cincinnati and the NCAA found that out of 648 respondents 25% had gambled on college athletics Believes that sports gambling leads to numerous victims Proponent of legal positivism Sonny Day Real name William Jahoda Member of organized crime from 1975-1990 Ran largest and most profitable bookmaking operation for the Chicago mob Never would take a bet from a college kid Stated that sports gambling is predatory, parasitic business and illegal Believes that the media aids illegal bookmakers Represents Americans Against Organized Gambling Does not oppose gambling but organized gambling Spoke of Charles Barkley and Dennis Rodman s lines of credit at Vegas casinos exceeding half a million dollars Concluded that organized crime, corporate interests, and states promote gambling XI-5

Makes a key point that gambling is never legal only licensed Feels that there is no such thing as a recreational sports gambler The Rev. Dr. David A. Boileau Serves as a moderator for the panel Interested in the decision making process that goes on in gambling Believes that ethics is the most profound form of human relationship Stated 1.) Ethics is usually about something being left unsaid 2.) Ethics is an interruption in the ordinary course of our lives 3.) What is the role of money? Believes that law is always less than ethics (me vs. we consideration) John Rawlings Editor of The Sporting News States that in working for a publicly held firm his main objective is to make money and maximize shareholder wealth Believes that betting on sports is inherently bad and no good can ever come from it His publication will not allow advertisements legal sporting books nor publish betting lines causing a loss of revenue Believes that high pro salaries lend to greater fixing of games at the collegiate level Felt that at least in one case there can be a correlation to drug dealing and use Thinks that pro athletes such as Barkley, Michael Jordan, and Albert Belle are role models and set a bad example by gambling Believes that legitimatising gambling leads to a runaway train Bernie Horn The NCALG, His organization doesn t oppose gambling but is trying to prevent the expansion of gambling Believes that the spreading of licensed gaming has had a negative social and economic impact Feels that the costs of gambling outweighs the benefits Relayed that the Harvard Medical School that 15 million Americans are pathological gamblers Pointed out how blow out games are left on TV s due to spread watchers seeing if the teams will cover Believes that networks should counterbalance with a little social responsibility such as gambling addiction PSA s Found that students are the most susceptible to gambling addiction Spoke heavily and frequently on different aspects of gambling addiction Thinks that gambling is based on accessibility and acceptability 3.2 Interview with Bill Saum: In Bill Saum s individual interview he begins by restating his occupational duties and moral position on sports gambling, which is detailed in his panel discussion. Bill then goes into the two most recent cases of point shaving incidents with the Arizona State and Northwestern men s basketball programs. Bill then reminds that the NCAA personnel doesn t make rules the 1000 schools make the rules. The NCAA is there to only enforce and interpret. Bill then touches on student athletes betting on games and the scandal at Boston College in 1996. Bill Saum says that the main priority of the NCAA s gambling division is to protect the XI-6

personal safety of our student-athletes and coaches. The second goal is to protect the integrity of the contest. Saum concludes with his position on sports agents and how students may not accept any benefits from agents as well as the necessity of protecting students at the high school and grade school levels in an effort to squelch the problems for they even make it to the college level. 4. Brief Summary of Video programs including the DVD Here are brief summaries of the video material provided for this module. Issues in Sport Teleweb students should view this module s brief tutorial on the DVD. 4.1 Program 16: Sports Betting: Gaming s Effects on Games and Society This program is designed to raise the ethical and societal issues related to gambling and sports. It provides key information regarding the management and decisions relating to the relationships among the interests of business, entertainment, athletes and governing associations. Discover the ways that betting can destroy a sports program and put the lives of athletes at risk with: Bernie Horn, J.D. Sonny Day Bill Saum John Rawlings George Ignatin, Ph.D. Our goal is to help you recognize the ethics, economics, and management issues surrounding gambling and its effects on sports and society. The learning objectives of this program are: Identify the laws, rules and regulations regarding betting and sports. Recognize ethics and management issues related to betting. Describe cases where athletes have ruined their careers due to betting. Describe cases where athletic programs were harmed through sports betting. Identify the risks and rewards to society of permitting betting on sports contests. Appreciate the seriousness of betting and its impact on sports. Summary Sports Betting: Gaming s Effects on Games and Society What is, and what should be, the connection between sports and betting? Wagering on the outcome of horse races may seem no different than wagering on the outcome of foot races. Wagering on foot races may seem no different than betting on a baseball game, a basketball game or an Olympic contest. But is it?... The ethical and management issues surrounding sports betting include deciding who, if anyone at all, should be permitted to bet on a sport, how we can control the influence of wagering on sport and how we can control those who seek to manipulate a game s outcome to win their bets. The conflicts between those who advocate the toleration of government controlled wagering and those who advocate the elimination of gaming on sports, and often the elimination of gaming in all its manifestations, are conflicts at a variety of levels of values, rights and responsibilities among several different sports betting stakeholders. Bill Saum, the NCAA enforcement representative on sports betting detailed how XI-7

sports betting influenced the outcome of games at Arizona State and Northwestern. Controlling sports betting requires the cooperation of athletes, coaches, athletic directors and law enforcement to protect those who may be seriously harmed. Research shows that college sports has a significant problem with sports betting that must be addressed for the good of the games. Sonny Day,the Chicago mob bookie who entered the witness protection program, presented his perspective on sports betting. He claimed that all sports are threatened by sports betting which is illegal everywhere in the United States except in Nevada. John Rawlings, the editor of The Sporting News, pointed out that collegiate sports may have a greater risk of game fixing than professional sports because fixing college games may be less expensive and less difficult. Professor George Ignatin defended sports gambling as a common public activity which is enjoyed by many who will bet on games no matter what the NCAA or the government says should be done. Bernie Horn, communications director of the National Coalition Against Legalized Gambling, argues that those who benefit from sports betting should provide help for those with a gambling addiction who are harmed by sports betting. How might we analyze the ethical and management issues associated with betting on sports? How should these decisions be made? How can sports betting management challenges be addressed in our free, democratic society? The issue of sports betting presents both difficult ethical concerns regarding the rights of people to gamble and wager, as well as difficult practical management challenges of how such rights, if they exist at all, should be managed and controlled for the betterment of both sport and society-at-large. Boston College s handling of their betting scandal was cited by Bill Saum as a textbook case of how to handle a sports betting related problem. He showed how sports betting is a problem both on and off campus and poses a threat to the well being of athletes and bookies alike. The integrity of sports is at stake. John Rawlings illustrated how the media can earn money from illegal sports betting, and how the media can assist those involved in illegal sports gambling. He made the point that The Sporting News that he edits will not report betting lines and will not take ads from sports betting advice programs and hotlines. Bernie Horn suggested that law enforcement and a public information campaign such as that taken against tobacco might help make gambling far less socially acceptable and may be a way to reduce the amount of harm caused by sports gambling. The conflicting values and rights issues make it difficult to structure policies regarding sports betting that will appeal to everyone. But the clear and present danger is that wagering can destroy the integrity of the games, and the lives of some of the athletes if these issues are not properly managed. These concerns make the development of good management policies of critical importance to both sport and society. In summary, we addressed the following questions: What is the relationship between sports and gaming? How does gaming affect the sports enterprise? What are the rules and XI-8

responsibilities of athletes and members of collegiate and professional sports programs regarding betting? What are the consequences of betting for students, athletes, gamblers, bookies and casinos? What are the ethical and managerial issues associated with gaming and sports? How should decisions on sports gambling be made? 4.2 Program 20, Ethics and Management of Sports Agents and Athletes This program is designed to introduce the ethical and managerial issues which confront sports agents, the athletes, teams and leagues with which agents interact. It is intended to illustrate how the interests of different organization can be in conflict and how structural changes may be necessary to resolve the societal issues regarding representation and appropriate compensation of athletes. Sports agents can benefit or destroy athletes and sports programs investigate how with top sports agents and journalists such as: Armen Keteyan Thomas M. Reich, J.D. Ray Anderson J.D. Bill Saum Our goal is to help you recognize and understand ethical and managerial issues associated with sports agents. The learning objectives of this program are: Describe sports agencies and their services. Identify the typical values, goals, rights and responsibilities of sports agents. Describe situations where sports agents have caused harm to athletes, teams and sports. Describe situations where sports agents help athletes, teams and sports. Describe the laws, rules and regulations that apply to sports agents. Appreciate the ethical issues which arise because of agents in sports. Summary Ethics and Management of Sports Agents and Athletes As the commercial value of athletic performance skyrockets, certain premier athletes are faced with multi-million dollar decisions. To assist athletes in their decisions, sports agents offer to represent athletes in negotiations and to advise them regarding the business side of sports. For this advice, the agents receive a percentage of the athlete s income. Some sports agents earn millions. Where there is big money, sometimes we find big problems, and this is no exception. Some agents go to great lengths, sometimes in violation of NCAA rules, to sign players to contracts. Some outstanding athletes have lost their collegiate eligibility because of contact with agents. While some agents begin to court athletes in high school, others agents have been known to court athletes even earlier. Athletes, parents, schools, the agents and sports associations all have a stake in the proper behavior of sports agents. How should sports agents be controlled? How should the interests of athletes be protected? The belief that every person has his price seems to be confirmed when we hear examples of the behavior of sports agents and their cooperating athletes. The rampant impression that almost anything goes fuels the unethical downward spiral that sports agents seem to be in. Armen Keteyan characterizes sports agents as people who confront an ever-deteriorating XI-9

ethical sports environment when they vigorously compete to represent athletes. In this no holds barred competition, many contestants seek to gain advantage by any means necessary. In the absence of strict regulation and oversight, sports agents must decide for themselves what they will and will not do to obtain new clients, and what they will and will not do when they represent their clients. Tom Reich, prominent sports attorney for over 27 years, represents many high profile athletes and he finds that What goes on is hard to live with. He does not see the possibility of a managerial cure for unethical behavior among agents. He believes that the built in conflicts of interests among the regulatory bodies that should be policing agents makes real ethics reform impossible. Ted Curtis serves on the Florida Athlete Agent Examination Committee, and he hopes that the industry can be reinvented and the current unethical practices eliminated. He believes that the first steps toward improvement is state legislation with significant monetary and jail consequences for improper activities. Ray Anderson is a successful practicing sports attorney representing clients in baseball, football, and the NCAA. A member of the board of the Sports Lawyers Association and the Black Sports Agents Association. He notes that some sports agents have exploited their own clients rather than protecting them from team, league and business injustice He says that playing by the published rules puts you at a disadvantage and that, in his experience, the effort of colleges to run clean programs athletic programs free of the influence of sports agents is not worth a squat. Nowadays, he says, everyone associated with the athlete wants you to show them the money. What can be done to reverse this downward spiral toward ever more unethical practices? What can athletes, coaches, sports associations, and unions do to police the practices that are already prohibited and to limit those behaviors that many agree are reprehensible but common among sports agents? The lure of big money corrupts management teams in corporations, governments and militaries, so it is no surprise that sport faces difficulties in controlling illegal and immoral behavior among sports agents. But understanding the temptations does not excuse the behavior. Armen Keteyan poses the question: how can sports agents be regulated? When some professional athletes earn huge salaries, how soon is too soon to make contact with a promising prospect? Would you recruit thirteen year old athletes, if you believed in their potential? What are the values and responsibilities that should guide the activities of sports agents? Ray Anderson related his personal experience of doing things by the book and losing out to those who cheated. He reports that, time and again, sports agents offer money and other valuables to an athlete, an athlete s family members and others, in order to sign a potentially lucrative athlete. Mr. Anderson reports that athletes are expecting each agent to meet or beat the last agent s offer, so it is difficult to compete in this marketplace when you are ethical. Mr. Bob Bradley, Associate Athletic Director for Academics at the University of Kentucky, asked why someone doesn t blow the whistle on the sports agents illegal and immoral activities. He says that college compliance officers are seeking out this information. This raises the important question: How can colleges stop the practices of XI-10

sports agents if colleges and regulatory agencies are not informed of the violations? Bill Saum, NCAA representative assigned to investigate and control sports agents sees his duty primarily to inform the athletes about sports agents and the penalties for violating NCAA policy. He agreed that the NCAA is behind the eight ball a little bit in controlling agent behavior, but they are trying. Some of the management issues associated with sports agents are issues that involve the violation of legal ethics, business ethics, fiduciary responsibilities, sports associations rules, and school and university policies. Athletes and agents have much to lose, as do the sports themselves, if the illegal and immoral practices of sports agents are not put under control. benefits to society and minimize the harm to the stakeholders. 5.3 Don t forget to take the quiz on this module s readings. 6. Sports and You... Should sports betting be permitted? How should sports betting be managed and controlled Should sports agents be more tightly scrutinized and the punishments for violation of existing laws increased? Should athletes be better educated to resist the illegal overtures of sports agents? In summary, we addressed the following questions: What are the ethical and managerial issues associated with being, managing or controlling sports agents? What are the rules and regulations regarding sports agents, and high school and college athletes? How can sports agents assist or harm an athlete s opportunities? Are the present regulations regarding sports agents appropriate? How should sports leagues, teams, coaches and athletes deal with sports agents? What are the obligations of sports agents to their athletes? How should the decisions relating to sports agents and athletes be made? 5. Brief Summary of Web Site activities 5.1 There a several links to web sites related to sports agents and to gambling. 5.2 There is an opportunity to post a position on an issue associated with gambling or sports agents. You should explain how the stakeholders are affected by your position and what could be done to maximize the XI-11

7. Self Test for Module 11 1. Athletes may place bets on games as long as they are not on one of the teams playing in the game. 2. Gambling poses no serious threat to the integrity of collegiate or professional sports. 3. Some collegiate athletes have lost their eligibility and in some cases their future careers because of betting. 4. Gambling on sports is legal in most states. 5. Some believe that newspapers should not post the betting line on sports games. 6. Sports betting is one way to make games more interesting. 7. Bill Saum cited s handling of their betting scandal as a textbook case of how to handle a sports betting related problem. (a) University of Florida (b) Boston College (c) University of Alabama (d) all of the above 8. Who is the NCAA enforcement representative on sports betting in college sports? (a) John Rawlins (b) Teddy Dupay (c) Sonny Blue (d) Bill Saum 9. What Chicago mob bookie went into the witness protection program and presented his perspective on sports betting? (a) Lon Kruger (b) Bill Curry (c) Sonny Day (d) none of the above 10. NCAA Bylaw 10.3 stipulates that staff members of the athletics department of a member institution and student-athletes shall not knowingly (a) solicit a bet on any intercollegiate team (b) accept a bet on any team representing the institution (c) participate in any gambling activity that involves intercollegiate athletics or professional athletics, through a bookmaker, a parlay card, or any other method employed by organized gambling (d) all of the above XI-12

11. Sports agents often are in difficult situations requiring ethical choices. 12. Some say that sports agents who play by the rules will lose out to those who cheat. 13. Contact with agents cannot cause athletes to lose their eligibility to play collegiate sports. 14. Some agents attempt to contact promising athletes when they are in elementary school to get an advantage on working with them when they get older. 15. Agents can be important in protecting an athlete s rights when a team no longer desires the athletes services. 16. About how much money a year does The Sporting News make off of gambling advertisements? (a) 50,000-150,000 (b) 100,000-200,000 (c) 250,000-500,000 (d) none of the above 17. Which organization is trying to prevent the expansion of gambling? (a) NRA (b) National Coalition Against Legalized Gambling (c) Gambling Coalition (d) none of the above 18. Which of the following is a drawback of gambling? (a) gambling attracts crime (b) gambling cannibalizes businesses (c) gambling is an addiction (d) all of the above 19. According to a study done by Harvard Medical School, how many Americans are problem gamblers? (a) 15 million (b) 1 million (c) 500,000 (d) none of the above 20. Which group profits from gambling and claims gambling is not their responsibility? (a) players (b) coaches (c) sport leagues (d) broadcasters (e) all of the above 21. In which state is sports gambling legal? (a) Florida (b) Alaska (c) Nevada (d) New York XI-13

22. Controlling sports betting requires the cooperation of whom? (a) athletes (b) coaches (c) athletic directors (d) law enforcement (e) all the above 23. Research shows that most betting at college campuses is run by (a) athletic directors (b) athletes (c) student bookies (d) b and c (e) none of the above 24. Sonny Day, who was a former Chicago mob bookie, argued that (a) all sports receive revenues from betting (b) all sports are threatened by sports betting (c) sports betting has no effect on the outcome of games (d) sports and gambling perfectly coincide 25. What statement reflects the NCAA s position on gambling? (a) sports gambling is good for collegiate sports (b) athletes are better off knowing the odds of the games (c) sports gambling increases interest in sports games (d) sports wagering demeans the competition and competitors alike by a message that is contrary to the purposes and meaning of sport. 26. John Rawlings, editor of The Sporting News, promotes anti-gambling by doing what? (a) writing editorials that show how betting will lose people s money (b) by not posting the betting lines and not taking ads from sports betting advance programs (c) by telling people what teams not to bet on (d) totaling avoiding the topic of sports betting 27. Agents (a) assist athletes in their decisions. (b) offer to represent athletes in negotiations. (c) advise athletes regarding the business side of sports. (d) all of the above. 28. Armen Keteyan (a) prominent sports attorney for over 27 years. (b) represents many high profile athletes and he finds that what goes on his hard to live with. (c) argument that communitarian strain would put up one possible ideal. (d) characterizes sports agents as people who confront an even deteriorating ethical sports environment when they vigorously compete to represent athletes. XI-14

29. is a veteran sports journalist who began his career as a special features reporter for CBS News and as a correspondent for Real Sports with Bryant Gumbel on HBO. (a) Theodore R. Curtis, J.D. (b) Raymond E. Anderson, J.D. (c) Armen Keteyan (d) Thomas M. Reich, J.D. 30., chairman and founder of Reich, Katz and Landis Baseball Group, and a sport attorney for twenty-seven years, is one of the pioneer sports agents in the industry. (a) Theodore R. Curtis, J.D. (b) Raymond E. Anderson, J.D. (c) Armen Keteyan (d) Thomas M. Reich, J.D. 31. is the founder and president of AR Sports, Inc., and a member of the board of directors of the Sports Lawyers Association and Black Sports Agents Association: (a) Raymond E. Anderson, J.D. (b) Theodore R. Curtis, J.D. (c) Armen Keteyan (d) Thomas M. Reich, J.D. 32. is an attorney with the University of South Florida since 1994, focusing on intercollegiate athletics, technology law and intellectual property. 33. The NCAA all forms of legalized and illegal gambling. (a) supports (b) ignores (c) opposes (d) none of the above 34. Ray Anderson has felt the ethics of management in sports has gotten. (a) much worse (b) much better (c) both worse and better (d) none of the above 35. According to Tom Curtis, the NCAA board of governors permits student athletes to earn up to how much a year? (a) $4000 (b) $3000 (c) $2000 (d) $1000 36. According to Bernie Horn, what are the benefits of gambling? (a) it attracts attention to sports (b) it gives people something to do (c) it employs people and brings in tax revenue (d) it makes boring games interesting (a) Theodore R. Curtis, J.D. (b) Raymond E. Anderson, J.D. (c) Armen Keteyan (d) Thomas M. Reich, J.D. XI-15

37. Which of the following is NOT a cost of gambling according to Bernie Horn? (a) losing a bet means losing money (b) it attracts crime (c) it cannibalizes businesses (d) it s an addiction Module Eleven. 1. b, 2. b, 3. a, 4. b, 5. a, 6. a, 7. b, 8. d, 9. c, 10. d, 11. a, 12. a, 13. b, 14. a, 15. a, 16. d, 17. c, 18. d, 19. a, 20. e, 21. c, 22. e, 23. c, 24. b, 25. d, 26. b, 27. d, 28. d, 29. c, 30. d, 31. a, 32. a, 33. c, 34. a, 35. c, 36. c, 37. a, 38. b, 39. e, 40. b 38. Which of the following incidents did Bill Saum cite as an example of an athlete getting involved with a student bookmaker? (a) at the University of Florida, Teddy Dupay gambled against his own basketball team (b) at Arizona St., a basketball player was in debt and started point shaving and then got other teammates involved (c) at Penn St. a football player was involved with gambling and it cost him his life (d) all of the above 39. According to Bernie Horn, which of the following is true about sports betting? (a) everyone profits indirectly from sports gambling (b) sports betting makes the game more valuable for advertisers (c) gambling is a mental disorder (d) both a and b (e) a, b and c 40. According to Bernie Horn, what percent of the revenue in the average gambling establishment comes from gambling addicts? (a) 25% (b) 30% (c) 70% (d) 88% XI-16