Representing the next big sports superstar is the dream for any athlete agent, but in Texas you can't legally even contact an athlete until you are registered with the state.
Professional- This registration requires you to be certified by the national professional player's association for any sport that you will be representing an athlete in. This includes sports like baseball, basketball, and football.
Limited- This registration only allows you to represent athletes participating in sports that do not have national professional player's association like golf or tennis.
Once you have decided on your type of registration you can find the application on the Texas Secretary of State website. Along with your application you will need to include a fee of $500 and proof of a surety bond purchased in the amount of $50,000. If you plan on providing financial services for your clients you will need to purchase an additional $100,000 surety bond, if you won't be providing those services you will need to sign an affadavit stating so.
What is a Texas Athlete Agent Bond?
An athlete agent bond is a type of surety bond that can be purchased from a surety company to act as a sort of guarantee that you will not illegaly take advantage of your clients. You are expected to operate your business according to the codes and regulations set up by Texas for athlete agents. If you do not follow these guidelines one of your clients may make a claim on your bond. Then your surety company would investigate the claim and if they find the claim valid will pay out on your bond up to the full amount. You are responsible to pay back the surety company for any losses incurred.
How Much Will a Bond Cost?
To get bonded, you will need to work with a surety bond company who can issue you a bond. The surety company will examine your financial and business history to ensure you are good candidate for a bond and to determine your bond rate.
When you purchase bond, you do not pay the entire bond amount, which is $50,000 for a Texas Agent Bond and $100,000 for an Agent Financial Services Bond. Instead, you pay a portion of this amount, generally 1-15%. The percentage you pay is based on your business and credit history. Those with good credit will be able to secure their bond at a lower rate than those with not-so-perfect credit.