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Frequently Asked Questions for Form Series 2500 - Athlete Agents

The answers to our Frequently Asked Questions are provided for informational purposes and are not intended to provide legal advice or to substitute for the advice of an attorney. If you have specific legal questions, consult your attorney.

1. Does the Texas Athlete Agents Act apply to all Texas athletes?

The Act defines an athlete as an individual who: (1) is eligible to participate in intercollegiate sports contests as a member of a sports team or as an individual competitor in a sport at an institution of higher education; or (2) has participated as a member of an intercollegiate sports team or as an individual competitor in an intercollegiate sport at an institution of higher education and has never signed an employment contract with a professional sports team.

2. Do I have to be registered as an athlete agent to contact a Texas athlete?

An athlete agent must register with the Secretary of State before the athlete agent may contact an athlete, either directly or indirectly, while the athlete is eligible. Also, an athlete agent must be registered to enter into an agent contract with an athlete, as that term is defined in Chapter 2051, Occupations Code. This includes the time-period after the athlete is no longer eligible to compete in intercollegiate athletics. Only an individual may register as a Texas athlete agent.

3. How much does it cost to register as an athlete agent? Must I obtain a bond?

Effective September 1, 2011, the annual filing fee for registration as an athlete agent is $500.

An agent must also provide to the Secretary of State a $50,000 surety bond, and, if the agent provides financial services or enters into a financial services contract with an athlete, the agent must provide a separate $100,000 surety bond. Both bonds must be payable to the state.

4. Is there a test required in order to register as an athlete agent?

No. An applicant must complete an application for registration as an athlete agent and provide the required filing fee. The application will be reviewed, and if approved, a certificate of registration will be forwarded to the applicant.

5. Are there guidelines that must be followed by an agent?

The Athlete Agents Act specifies certain prohibited acts and delineates agent contract requirements.

6. Are there any penalties associated with a failure to comply with the Athlete Agents Act?

The Secretary of State has the authority to revoke or suspend an athlete agent's registration. In addition, the Secretary of State can assess an administrative penalty in an amount up to $50,000.00 for a violation of the Act or an administrative rule adopted pursuant to the Act. An athlete agent who intentionally or knowingly commits a violation of the Athlete Agents Act is also subject to criminal penalties.