Does Steve have an agent?

Unless something's changed, Jeff Fried is his agent.

 

Another thing. I don't remember the exact amount, but do agents really make 10%?. Before all the CBA stuff and before the salary scale, I recall reading the average agent received 4% commissions. However, since the salary scale has been instituted I've heard that average has gone down.

 

His agent is also tmo's agent.

 

Agents do more than just work contract deals. Granted Stevie could hire his own personal assistent, tax planner, attorney, etc but one of the joys of having an agent is they can arrange all of the non-basketball things to get done.
Believe me most of the NBA players ar not business people and do not want to have to mess with the business dealings.

 

A-train-
Yeah he could do that, but not only would it probably be wrong but it could lead to team in court.
Companies have tried in the past to fire commissioned salespeople after they sign a big contract but before the money is collected (assuming commissions are paid on collections) to try to save a couple bucks. Usually the courts don't look too highly on someone trying to get over.
Like I said Stevie could go out and hire a team of professionals to run his career, but one way or anotehr someone is taking his money.
Agents, although they can be tough to deal with, provide a service. They not only are good negotiators but they also have good connections to other professionals, and possibly most importantly they are expereinced in how to treat multi-millionares to ensure the right thingsa re being done.

 

Also, think of it as an investment. If you were going to get 10% off of $$x million, wouldn't you try to find gigs for your client?

Stevie could make 50 million off a shoe deal his client found for him. Its better to pay that 5 million to the agent than not have that 45 million at all.

 

The average agent receives appx 4 to 6% commission on deals.

It is becoming more common for players to fire agents and go with a team of business consultants paid retainers and hourly fees rather than on commission. The first to do it was Grant Hill. He has a team of 5 or 6 people handling his finances - lawyers, CPA's, financial planners, etc. Other players in other sports are doing this as well.

 

"Stevie could make 50 million off a shoe deal his client found for him. "

Shoe deals are in the low single digit million range, not 50million. In the past 12months for example, Reebok Intl. has only made $94M, and that includes proceeds from their Rockport, Ralph Lauren Footwear, and the Greg Norman Division!

 

The whole issue is about overpaying, IMO. Under the new CBA the top players will undoubtably get the max, so no salary negotiation is necessary. An agent might become necessary if a player wants to switch teams, to negotiate a sign-and-trade, etc. And he might be useful in terms of endorsement possibilities - but really, very few players get much in the way of endorsements these days.

So in a Ray Allen type of situation, it makes alot of sense to handle the contract talks himself. Even at 4%, that's $3 or $4 million dollars for brokering a deal that might take a few minutes to type out. It just doesn't make sense.

 

I have worked as a manager in the music business since the early 90's. Managers and agents do alot more than negotiate contracts. Working as a go between is very important. Many stars are nice people, but they have to learn to set boundries. An agent is often the fall guy for opinions and actions of the client. Often my clients say, its not me, its my manager's rules.

A good agent will build a bond between himself and the client. Trust is very important. Looking out for the interests of the client is job 1. Sometimes when my clients are feeling down, I am the only one on their side.

This is the rosy side of being an agent. If I have to be nasty, demanding, or just a plain hard ass, I will. Its all for the client.

As for %, I take 10% of everything. Some clients don't want to pay for gigs they find themselves. My response is fine, lets try it for a few outings. When no one is there to back them up and make it run smooth, they see my side. Peace of mind becomes worth 10%.