The FTC just launched an investigation into sports agents in January 2026. Here's how to make sure yours isn't one of the bad ones.
The Federal Trade Commission is investigating NIL agent violations under the SPARTA Act. They're looking at false promises, illegal inducements, deceptive commission structures, and conflicts of interest.
Unlike professional sports agents (NFL, NBA, MLB) who face strict regulations, NIL agents have almost no oversight. No commission caps, minimal licensing requirements, and limited legal recourse for athletes.
That means the responsibility falls on YOU to vet your agent properly. These 15 questions will expose the bad ones before they cost you money.
Good Answer:
"3-5% commission on deals I negotiate for you. If you bring me a deal, 0-1% admin fee for contract review."
Red Flag:
"10%+" or won't say upfront or "we can discuss that later." Any agent who won't state their rate clearly is hiding something.
Good Answer:
"Yes, here's my state registration number and NFLPA/NBPA certification" (if applicable). They provide proof immediately.
Red Flag:
"I don't need to be" or vague about licensing. While NIL agents have fewer requirements, legitimate ones will have proper state registration.
Good Answer:
Gives you names of 3+ current clients you can actually contact and verify. Provides contact info so you can reach out directly.
Red Flag:
"I can't disclose client names" or only gives first names or only mentions former clients (why did they leave?). Legitimate agents have current clients willing to vouch for them.
Good Answer:
Shows redacted contracts with real numbers. "$150K Nike deal for college QB," "$75K supplement deal for UFC fighter," etc. Specific and verifiable.
Red Flag:
Vague about past success. "We've done lots of deals" without specifics. Name-drops brands but can't provide proof. All talk, no receipts.
Good Answer:
Detailed breakdown: "Deal sourcing, brand outreach, contract negotiation, legal review, payment processing, relationship management." Clear what's included.
Red Flag:
"We handle everything" with no specifics. If they can't explain what you're paying for, you're probably paying too much.
Good Answer:
"Commission covers everything. If there are extraordinary expenses (international travel for appearances), we'll discuss and get your approval first."
Red Flag:
Marketing fees, administrative fees, "operational costs," or any additional charges beyond the stated commission. Death by a thousand fees.
Good Answer:
"No, you should handle your own finances or hire a separate financial advisor. If you need help, we can recommend someone."
Red Flag:
"$2,000/month for bill pay and financial management." That's $24K/year for services a free banking app provides. Total scam.
Good Answer:
"Based on your current situation, you need A and B. You don't need C yet, but we can revisit in 6 months." Honest assessment of your needs.
Red Flag:
Pushes every service regardless of your needs. "You need social media management, brand consulting, financial planning, legal services, all through us." Overselling to maximize fees.
Good Answer:
"30-60 day written notice, clean break. You owe nothing beyond commission on deals already in progress. We both have the option to end the relationship."
Red Flag:
Penalties for terminating, must pay out remaining contract, or no exit clause. You're trapped even if they do terrible work.
Good Answer:
"Here are realistic projections based on comparable athletes: $X-Y range in year 1. These are estimates, not guarantees, but we'll work toward this target."
Red Flag:
Won't commit in writing or makes wild promises verbally. "We'll get you $500K easy" but won't document it. If they won't write it, they don't believe it.
Good Answer:
"Yes, [Your School] has specific rules about X, Y, Z. Your state laws say A, B, C. NCAA regulations require D. Here's how we navigate that."
Red Flag:
Vague or "we'll figure it out" or doesn't know your school's specific rules. You could lose eligibility because they didn't do their homework.
Good Answer:
"No. Under the SPARTA Act, that would be illegal. You sign with me based on our plan and track record, not because I gave you something."
Red Flag:
Offers gifts, cash, travel, "loans," or benefits to you or your family before you sign. This violates federal law and puts your eligibility at risk.
Good Answer:
"Separate CPA/financial advisor handles your finances. I handle brand deals and negotiations. This avoids conflict of interest."
Red Flag:
"I handle both" or "my business partner handles the money side." Massive conflict of interest. Your agent shouldn't control your bank account.
Good Answer:
"We pursue payment immediately. I work with our legal team to enforce the contract. We have a clear collection process and you're not left hanging."
Red Flag:
"That's not my problem" or "that never happens" or vague about collection. If brands don't pay, you need an agent who will fight for you.
Good Answer:
"Absolutely. Here are three current clients with contact info. Feel free to reach out and ask anything." Confident in their track record.
Red Flag:
Only provides former clients (why did they leave?), won't provide contact info, or gets defensive. If current clients won't vouch for them, there's a reason.
| Factor | Professional Agent (NFL, NBA) | NIL Agent |
|---|---|---|
| Commission Cap | 3-5% (strictly enforced) | None—charge whatever they want |
| Licensing | Required + exam + background check | Minimal (just state filing in most cases) |
| Certification Exam | Must pass comprehensive exam | Not required |
| Background Check | Criminal + financial required | Not required in most states |
| Continuing Education | Annual requirements | Not required |
| Oversight Body | NFLPA, NBPA, MLBPA regulation | Minimal to none |
| Legal Recourse | Strong (can be decertified, sued) | Weak (limited accountability) |
The best way to avoid bad agents is to know your value before meeting with them. When you understand your market worth, you can immediately spot agents who are trying to lowball you or charge excessive fees.
Calculate Your Platform ValueIf they won't answer these questions directly and transparently, that IS your answer. Walk away.
Good agents have nothing to hide. They'll answer every question, provide references, show you their track record, and give you time to review everything with an attorney.
The FTC is investigating. Don't be the next victim. Do your homework.