NBPA informs agents of tighter restrictions, tougher penalties
The NBPA informed the league’s certified agents Monday that the player’s union will begin to “strictly enforce” a rule prohibiting agents from representing both an NBA player and a coach or front office executive, SI.com learned through an NBPA memo. A six-month grace period will be provided—ending on Aug. 22—to allow agents to transition clients to other representatives.
Different agents at the same agency will be allowed to separately represent a player and a coach or front office executive, however, creating a "Chinese wall" that may prevent any strict enforcement from truly occurring.
The NBPA Executive Committee voted on the matter during a Feb. 12 meeting at All-Star Weekend in Toronto. On hand for the vote were NBPA President Chris Paul, LeBron James, Stephen Curry, Carmelo Anthony and others.
The memo also addressed several changes to the NBPA agent regulations and agent dues that were determined at the 2016 NBPA player representative meeting in Toronto.
Among those changes were details about the NBPA's plan to introduce a tiered system for annual agent dues beginning with the 2016–17 season. Agents that represent 0–9 players will be required to pay $2,500 in annual dues, agents that represent 10–19 player will be required to pay $5,000 in annual dues and agents that represent 20 players or more will be required to pay $7,500 in annual dues. Previously, all agents were only required to pay a $1,500 annual due, according to multiple player representatives.
Agents will also now be required to disclose any involvement of paid personnel or recruiters that help sign players to their respective agencies. Additionally, agents will be required to disclose whether they refer players to financial advisors and explain the process for the selecting the advisor as well. The memo states monetary fines, up to a maximum of $100,000, will be part of the potential penalties for agents who fail to comply with the new NBPA agent regulations and agent dues. Penalties will include fines, “public reprimand,” suspension and decertification.
According to the memo, agents will now be required to pass a written exam covering the NBA's collective bargaining agreement in order to earn certification.