NFLPA rules mandate that an NFLPA certified agent may not charge more than 3 percent of a player’s compensation for contract negotiation services. However, the NFLPA and Players Inc. kept 69% serving in a similar capacity negotiating group licensing deals for NFL players.
Dr. Daniel Rascher, a specialist in sports economics, wrote:
“From 2003-2005, the NFLPA/NFLPI(Players Inc.) kept 64% of group licensing revenues. A change in how the NFLPA/NFLPI treated $8 million in licensing revenues resulted in an increase in the percentage kept by the union. As a result, the NFLPA/NFLPI kept 69% of group licensing revenues in 2006 and 68% in 2007. Figures for other sports associations, such as the NBPA(National Basketball Players Association) and MLBPA(Major League Baseball Players Association), as well as for third-party licensing entities, are typically between 10% and 40%, with levels around 25% the most common. It is my opinion that the NFL’s 64%-69% share is outside of the customary range, and I know of no reason why it should be outside this range.”
The text from Rascher’s report may be viewed by clicking HERE.
The NFLPA website informs players that:
“Marketing agreements are also very common. The fees for these services average about 20 percent of the marketing dollars negotiated by the agent, which is standard for that industry. Some players are paying as low as 5 percent, and a few are paying 25 percent.“
Why are Players Inc. and the NFLPA charging nearly 70%?