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Agents committee proposes three-part initiative

To counter mounting problems with sports agents, an NCAA special committee has proposed an initiative featuring education of student-athletes, flexibility in meeting the financial needs of those athletes, and regulation and enforcement.

After a meeting July 17-18 of the NCAA Special Committee on Agents and Amateurism, committee chair William E. Kirwan, president of the University of Maryland, College Park, said the committee will report its findings and proposals to the NCAA Council.

"We intend to send to the Council a report that is built on three cornerstones," Kirwan said. "They all work together. No one of these would make sense without the other two. So we see this as really an integrated package of proposals."

Suggestions for improving flexibility in financial aid rules include allowing student-athletes to work on a limited basis and a loan program for student-athletes who have potential to play in professional leagues.

The loan program would enable a student-athlete to borrow against his or her future earnings. Most likely, the program initially would apply to basketball and football athletes, said Cedric W. Dempsey, NCAA executive director, with possible expansion to other sports later.

"There are many details to be worked out with regard to this loan program -- the source of the loan, the timing of the loan, the amount of the loan," Kirwan said.

"And we want to build into this mechanisms that would protect the student-athlete from ending up with significant debt, should his or her athletics career not lead to a professional contract."

Educational component

Another element of the committee's proposals is an increase in efforts by institutions and the NCAA to educate student-athletes, administrators, coaches and the general public about the transition process from intercollegiate to professional athletics.

Kirwan said the educational component would touch on financial issues, issues related to contracts, educating student-athletes about the support they need in the process, educating coaches and administrators about financial and agent issues, and educating the public about the enormous investment the NCAA makes in the education of young people.

"We see this education effort leading to guidelines and standards that institutions would follow," Kirwan said. "Also, we want to explore the possibility of a clearinghouse of information that would be managed by the NCAA and that would be a central source of information for student-athletes, parents and institutional representatives on important issues regarding the transition of student-athletes into professional athletes -- disability insurance, how to select representatives, legal representation, sports agents, financial planning, matters like that."

With the educational component and financial aid flexibility in place, increased penalties for student-athletes' and institutions' violation of NCAA regulations would round out the initiative.

"We expect to incorporate, as the final prong of this proposal, some very significant penalties, both for the student-athlete and to increase the expectation that institutions can be held responsible if they haven't done an appropriate job of providing education and monitoring of their programs related to agents," Kirwan said.

While institutions cannot always be held accountable for actions of their athletes, institutions need to do a better job of educating about agent issues and of monitoring activity, he said.

Will not eliminate problem

Kirwan said the committee's proposed initiative will not eliminate agent problems, but they do offer progress.

"We recognize that there is probably nothing that this committee can bring forth that is going to eliminate this problem," Kirwan said. "We have some proposals here that can help address the situation.

"I don't think there is any single member of the committee who thinks that, if all of these recommendations are approved by the NCAA, this problem will go away. We know that's not the case. These are constructive suggestions that will move us a step forward."

Kirwan said that most proposed legislation likely would not be ready for the 1997 NCAA Convention but would be taken up after restructuring of the Association takes effect next year.

A measure allowing student-athletes to work during their off-seasons to earn money up to the cost of attendance is the kind of legislation that will be proposed to the Council, Kirwan said.

The loan program also would seek to help close the gap between the cost of attendance and financial aid currently permitted under NCAA legislation. Dempsey said studies indicate that the difference is between $1,800 and $2,400 a year, depending on the institution.

The amount of loans would be market-driven, Kirwan said, but would be in the $5,000 to $10,000 range.

"We can't outbid agents. We're trying to create something so students have access beyond what they have now," he said.

Kirwan acknowledged that some of the proposals will be controversial and not universally endorsed by the membership.

"The committee sees its role as not necessarily coming up with all the answers or all the right legislation," he said. "We have a very significant problem, and our responsibility as a committee is to look at what might be reasonable alternatives for the Association, the membership, to consider.

"I'm certain a number of these proposals will be controversial. Our job is to put some ideas on the table for debate and consideration and then let the Association decide exactly where it wants to go with them."

Dempsey concurred.

"This was a very creative work by the committee," he said. "They recognize they are plowing new turf."