Consumer fraud investigation where the FTC is seeking information from 20 universities about whether sports agents are complying with the Sports Agent Responsibility and Trust Act (SPARTA), which requires disclosures to student athletes and notification to schools. The inquiry aims to ensure student athletes are protected from deceptive practices by agents.
In-house legal teams should review agreements involving sports agents, including contracts between agents and student athletes, and any university-agent memoranda or addendums. Key clauses to examine are the mandatory disclosure statement (with SPARTA-specific language), the 72-hour notification requirement to the athlete's school after contract execution, and prohibitions against inducements such as false promises or providing value. Contracts may need amendments to insert SPARTA-compliant disclosure wording, add explicit notification timelines and methods, remove any terms that could constitute inducements, and potentially include compliance certifications or audit rights to ensure ongoing adherence.
Entity
Sports agents
Also known as: Sports Agents
Industry
OtherOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/01/ftc-seeking-information-20-universities-sports-agents-compliance-law-aimed-protecting-student
model letter sent universities regarding sports agent respon
https://www.ftc.gov/legal-library/browse/cases-proceedings/staff-letters/model-letter-sent-universities-regarding-sports-agent-responsibility-trust-act-sparta
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"sports agents who work with student athletes"
"Sports Agent Responsibility and Trust Act (SPARTA)"
"whether sports agents are providing disclosures required under the law"
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