How do sports agents get paid in basketball?

[taii1234]

Im wondering how they get paid? Do the agents send the player a bill for a percentage of how much he got paid that month? Does the NBA automatically deduct the sport agent's percentage from the check of the player and just transfers it to the agent? Or does the player pay everything up front to the agent once he signs a new contract?

[the_antz_nest]

As a guess I would say the agent gets a cut of the players contract, as the agent did the work to get the player that contract. I doubt any athlete pays an up front fee.

[Moneytalks]

the 10% cut on contracts is the standard, idk if that happens monthly or all up front

[Dr Aki]

they get a percentage cut of all earnings i think

that's the contract, the endorsements etc...

[bleveland]

they get a percentage cut of all earnings i think

that's the contract, the endorsements etc...

I think the question is how do they get paid, through the NBA or through the player (well player's accounting) themselves.

Pretty sure it's the nba that pays them now I think about it, as you never hear about sports agent not getting paid.

[omerome]

they get a percentage cut of all earnings i think

that's the contract, the endorsements etc...

I think the question is how do they get paid, through the NBA or through the player (well player's accounting) themselves.

Pretty sure it's the nba that pays them now I think about it, as you never hear about sports agent not getting paid.

My guess is the team who pays the player handles the deductions and one of them is probably "Agency fees", or something.

[The Rebel]

the 10% cut on contracts is the standard, idk if that happens monthly or all up front

Actually agents get 4-6% of the deals, and from my understanding that money is deducted by the team and sent to the agents every paycheck, and all the marketing deals are handled the same way so when a shoe company pays a player they deduct the agents commission and pay the agent separately. however even if a player fires an agent any contract that the agent negotiated they still get paid on for the life of the deal.

[Moneytalks]

Actually agents get 4-6% of the deals, and from my understanding that money is deducted by the team and sent to the agents every paycheck, and all the marketing deals are handled the same way so when a shoe company pays a player they deduct the agents commission and pay the agent separately. however even if a player fires an agent any contract that the agent negotiated they still get paid on for the life of the deal.

oh, idk where i read that 10% figure, I alway thought it was crazy high, thanks for the correction

[prophet_of_rage]

It's not crazy high. It's just not the cut sports agents get. Literary agents took 10 per cent for sure.

[Beffiosa]

the 10% cut on contracts is the standard, idk if that happens monthly or all up front

Its less than 5%

[choppermagic]

Wait, so if a player and agent have a falling out, and the agent gets fired, he still gets paid over the life of the contract? Even if a new agent comes aboard and starts representing the player and doing work, he gets nothing until the player gets a new contract?

Then isn't it in the agent's interest to get fired after they negotiate a deal so they dont have to do any more work but still get paid? Frees up time to hustle for other clients?

[OvertimeNO]

Then isn't it in the agent's interest to get fired after they negotiate a deal so they dont have to do any more work but still get paid? Frees up time to hustle for other clients?

I imagine doing the former on a consistent basis would make the latter that much harder to pull off, considering players talk to each other and word gets out.

[Jvaughn]

Wait, so if a player and agent have a falling out, and the agent gets fired, he still gets paid over the life of the contract? Even if a new agent comes aboard and starts representing the player and doing work, he gets nothing until the player gets a new contract?

Then isn't it in the agent's interest to get fired after they negotiate a deal so they dont have to do any more work but still get paid? Frees up time to hustle for other clients?

It's fair if you think about it though. The original agent was the one who negotiated the first contract, so he deserves that money. The new agent will have to muster up new endorsements, and marketing deals to get paid.

[Moneytalks]

It's not crazy high. It's just not the cut sports agents get. Literary agents took 10 per cent for sure.

musician agents as well.
in soccer the legal range is between 4 and 10%, but 10% is rare. for some reason, I remember reading somewhere that NBA agents get 10%, which is crazy high imho since an athlete doesn't make money for a long period of time.

[taii1234]

the 10% cut on contracts is the standard, idk if that happens monthly or all up front

Actually agents get 4-6% of the deals, and from my understanding that money is deducted by the team and sent to the agents every paycheck, and all the marketing deals are handled the same way so when a shoe company pays a player they deduct the agents commission and pay the agent separately. however even if a player fires an agent any contract that the agent negotiated they still get paid on for the life of the deal.

Yea, this makes sense. I wouldn't trust the players to give me my cut every paycheck.

Also per wikipedia, NBA agents can't take home more than 4 percent of a contract. So if player A inks a 60 million deal over 5 years, then the agent's max would be 2.4 million over those 5 years.

I also read somewhere that the limit for endorsements is higher for agents compared to what the percentage the NBA allows the agent to take home.

With this new TV deal going in effect soon, I heard of the local sports radio this morning that LeBron may try to push the union to get no max limits on contracts, similar to the MLB. Could you imagine LeBron taking home 100 million and Rich Paul taking home 4 million?

And lets say theres an agent that repersents 2-3 of the superstars who may bank that time of money.

[FloridaBrah]

I didnt even know agents get a cut from the endorsement money. I thought it was only from the nba contracts. So lets say jay z is getting a measly 5% from Durants monster Nike deal. Its said to be worth around 300 mill when all is said and done. Thats a cool $15 mil in jayz and Roc Nations pocket . Wow these agents are making bank.

[CodyB_]

I'm surprised that the players don't do it themselves. I trust they have financial advisers and accountants at their disposal that pay their child support, strip club tab, duis etc.

[Mahaffey]

I'm surprised that the players don't do it themselves. I trust they have financial advisers and accountants at their disposal that pay their child support, strip club tab, duis etc.

They're signing legal documents
Legalzoom isn't cutting it

[spaceballer]

It also depends on the type of agent relationship. Some agencies charge a percentage. Some charge a per service charge by the hour or per task/service rendered or something, and don't charge a percentage. Most players are signed with agents of the former category, a few players elect to go with an agent of the latter category to save on fees and not have to give over a percentage of their earnings, while still a smaller subset may be willing to shell out for both types of agents concurrently.

[majortom71]

My guess is same way lawyers get paid since most of them were lawyers at one point or another.