Living the dream! One of the best rewards I ever receive as an agent is watching my clients live and accomplish their dreams. One of my clients is about to play in the Eurocup Finals. We we met last year she was on a mid-level team not playing Euro competition and was drastically under-paid - the victim of an agent who did not care about her as an individual. She is a tremendous person and athlete - she was capable of so much more than she was experiencing. Through her determined work and our close and dedicated partnership she has now reached the highest level of overseas basketball - not as a role player, but a leader. I could not be more proud of her and more grateful for being able to share this moment with her.

Tax Information

Tax Information

I have always counseled each of you regarding the importance of consulting a professional regarding tax issues. As a result of several recent inquiries I wanted to resend part of an earlier email regarding paying taxes on overseas income. First, I want to alert you to an issue regarding overseas bank accounts

Overseas Bank Accounts

Federal income tax form 1040, schedule B, lines 7a and 7b, pertain to “foreign accounts and trusts.” This section requires you to disclose that you had a foreign bank account at any time during the year unless the combined value of all foreign accounts was $10,000. This has practical applications: (1) The above is another of the many reasons why we need to ensure the GREAT bulk of your overseas income is wired directly to an account in the US; and (2) we will have to ensure that whoever completes your taxes understands that there must be a disclosure if you have such an overseas account(s).

Taxes on Overseas Income

As to taxes on overseas income in general, very few athletes understand the requirements for paying taxes in the US. I would never claim to be a CPA, but want to provide a very short ad general overview based on input from professionals I trust.
The United States has a tax agreement with almost every country in the world to protect against double taxation. This means that if your team is paying tax on your salary, you will not be obligated to pay taxes on the same salary in the US up to the percentage of taxes you (the team) paid in the country where you played. For example:

If you make $100,000 playing in Italy and the club you play on pays 20% taxes on your salary in your name, then $20,000 in taxes was paid in your name. When you get back to the US and declare to the IRS that you made $100,000 in Italy, your tax obligation here will be calculated using various factors - such as total salary, dependents, deductions, etc. If your calculated rate in the US was 25%, that would mean a tax of $25,000. As a result of $20,000 in taxes already being paid in your name by the Italian team, your tax liability in the USA should only be the difference between $25,000 and $20,000 = $5,000. As a result, you would owe $5,000 to the IRS on the total income you earned overseas. PLEASE make sure that we address any questions you have regarding overseas income.

Stages

The relationship between agent and athlete should start at graduation and continue through and after retirement. This type of long-term, committed relationship greatly benefits an athlete - if an agent understands their client’s wants, needs, likes, dislikes and passions, they are better able to ensure their happiness, safety and success. Every time an athlete switches agents they have to rebuild everything established with their prior agent – many times a long and unsuccessful process.

I have been blessed with many long, close and special client relationships. One such relationship is with Jenni Benningfield. In 2003 I was blessed to meet Jenni – then a junior at Vanderbilt. I first realized I wanted to work for Jenni when I listened to her talk to a teammate after a game during her sophomore season. Jenni walked the teammate through several plays – as a friend and leader. I knew at that point I wanted to be on Jenni’s team one day! Over the last six years Jenni and I have been through so much in life – the one constant has been the growth or our relationship. We have seen eachother through WNBA seasons, overseas seasons, injury, happiness, great success, disappointment and many, many more aspects of life. It has been a wild and wonderful ride that I feel so incredibly blessed to have shared with her. Jenni went to Australia this overseas season – we wanted a team and country where Jenni could truly enjoy what she thought might be her last year as a professional athlete. The experience far exceeded what we both hoped for. Jenni had a spectacular season – on and off the court. It ended with Jenni being named MVP of her team.

Jenni’s retirement is bittersweet. I will miss Jenni the athlete – the extraordinary way she led her teammates and played a game she loved. However, I am now exceptionally blessed to share her life as a friend.

Reality/Injury

Every year I face the heartbreaking task of bringing at least one of my clients home from an injury. Many times WNBA basketball players ask their bodies to do extraordinary things – to play year-round, season after season, without a break. They do this to take maximum advantage of their ability to earn income – the logic being that they will not want or be able to play forever and should maximize every opportunity while they do. This is very appealing; however, it usually comes with a tremendous price/sacrifice, including devastating injury and/or not being able to see family, friends and loved ones for months at a time. Far too often women are also mistreated by teams and/or their own agents.

What is the solution? I wish I had an easy answer. I want my clients to all have the most happy and productive careers – to live where they want and be paid an amount they deserve. Isn’t this what they deserve? For some, money is more important than anything else. For others, the ability to live in and learn about a culture is most important. Ultimately, injury is always only a step away. An athlete should have no regrets – they should live and play fully. However, they must also take care of their bodies, minds, hearts and souls. They can’t forget to live.

As I write this I am bringing someone I care deeply for home from an injury. She has worked so hard for so long – when she plays it seems like she flies through the air. For the last 16 years her life has been devoted to basketball. All of that seems so meaningless right now as I watch her sit with her crutches in pain - her career has been jeopardized because of injury. Why . . . because she forgot to remember she was human and needed to rest. She was not a machine. As an agent I should push each client to play, play, play – that’s how my clients and I make money. However, money can’t help an athlete walk after her children and live without pain if her body is broken. Professional basketball is a business and an athlete is only as good as the product she sells – the ability to use her body and mind to do things on the court most of us can only dream about doing. It is up to everyone who loves an athlete to help them be as successful, happy and healthy off the court as on.

Be Cautious

This is a very troubling story from ESPN. I want it to serve as a reminder to clients and their friends to always remain cautious:

"James Conyers, the man who served five years in prison for stalking Olympian Sheila Taormina, was arrested and removed from Indiana State University on Sunday night following reports that he'd been stalking an ISU women's basketball player. Conyers walked into the student commons area, perched himself so that he could look at Sycamores center Kelsie Cooley, and was promptly arrested for criminal trespassing. A week ago, Conyers, 41, allegedly called the 19-year-old Cooley, said he was an ex-ISU jock and asked to meet her. In a report filed by campus police, the conversation was called "amicable." But that night, Cooley slept with a chair propped against her door for protection. Conyers' name circulated through the national media last summer, when Taormina, a pentathlete, made her final bid for the Olympics. Taormina told her story of how Conyers stalked her for nearly a year, threatened to rape her and followed her from Michigan to a training facility in Florida."

No Excuses

"The person who says it cannot be done should not interrupt the person who is doing it."
-Chinese Proverb

One year at a basketball event I was standing next to an agent who did not know who I was. I watched in horror as the agent's two assistants answered his emails and text messages for him as he met with a prospective recruit. Shouldn't his employers (his clients) have a right to expect that he is the one answering their emails/text messages for him? Don't you think that someone who tells a client they can be reached by a certain method of communication has a responsibility to ensure a response is given? Saying that you are too busy to respond to a client's question is never acceptable. If I'm a client and my employee tells me that and/or ignores my communication then I know one thing - they don't have time, energy or desire to work on my behalf.

Striving For Excellence

Every day in my personal and professional life I encounter people who preach excellence, success, fairness, determination and make endless promises. They say they want to grow, win and lead – that they are “different.” Are they? What does it mean and who can be trusted to truly understand, appreciate and honor those types of promises? Do you and/or the people in your life, career and/or business truly know you, who you are and what you believe? Isn’t that important? To me, being excellent does not mean that you are perfect, without fault and blameless. Instead, it means you are relentless in your pursuit of personal, spiritual and professional success. You admit your shortcomings and devote the time and effort necessary to overcome them. My goal is to be passionate about everything I do – to attack everything with purpose and desire. I want to always succeed, but know I can’t. However, I will always be able to say to my family, friends and clients that I truly tried. What can you do today, tomorrow or this year to improve your life, family and career – to be excellent? What can I do? Don’t you owe it to yourself to wonder?

Overseas Reality

In talking to trusted overseas teams, managers, agents and friends, it is becoming more and more clear that overseas opportunities and salaries could be dramatically different next season. I have never been a "yes" man to any of my clients - my commitment to each of them is to always tell them the truth even if it isn't something they want to hear. It would be irresponsible of me to not have a very direct and honest talk with each of them about what we might face when overseas offers are received for next season. Don't be mistaken, there will still be plenty of agents and teams that will say that the world economy will not impact overseas salaries and they may even go up - while this might be the case in regard to specific teams and specific players, it will likely not be normal. Instead, salaries are likely to stay the same or go down. I want each of my clients to understand this reality and be prepared for the worst - I would rather that we are surprised by a higher salary than horribly disappointed by a lower one.

Many sources have confirmed that sponsorship money should be considerably less. Most overseas teams depend on budgets driven by sponsorship money - payments from local, national and/or international companies. Most of these companies have suffered just like the rest of individuals and corporations throughout the world. We already saw an incredible amount of teams having financial trouble this season. It seems like multiple times each day I hear of a team disrespecting an athlete's contract. I have never been contacted by so many athletes I don't personally represent searching for help. I am disgusted and horrified by the abuse I see so many athletes facing. I will continue devoting my full energy and attention to preventing this from ever happening to any of my clients.

Where does this leave us? As I did this year, I will search for teams that I know will actually pay the money promised in a contract. While accepting the highest offer is always most appealing, it is NOT always the correct decision. This is where agents and clients disconnect the most. Since an agent gets paid a commission based on the amount of their client's salary, many agents push for acceptance of the highest offer. This is especially true because agents are usually paid at the beginning of a client's contract and are not impacted by whether a team is ultimately unable to pay everything owed. Instead, it is critical to accept an offer from a team that WILL actually pay all of the money promised. For example, many times several teams will make an offer to a particular athlete. It is my responsibility to determine which team will ultimately pay the most money - not which team offers the most. For example, a client might get offers from two teams: (1) Team A offers $15,000 per month for 8 months ($120,000 total); and (2) Team B offers $10,000 per month for 8 months ($80,000 total). This would seem like a huge difference. However, my research might indicate that team A can't pay everything they promise and, ultimately, Team B might be the better choice. If Team A can only pay for three month ($45,000) and Team B can actually pay for eight month ($80,000), then Team B is clearly better financially.

Next season will likely be filled with many agents, athletes and teams searching for any way to gain an advantage. It will be critical to not listen to every person speaking into your ear - you must filter who is talking to you, what they are saying and what is their motive. Remember that even athletes you are close to ARE your competitors - for jobs, money and opportunities. Share information VERY carefully. I am ALWAYS exceptionally excited for this time - to see each of my clients travel overseas to work, explore and make money. I want this next season to be as incredible as ever for my clients and will do everything in my power to see that it is.

Insurance Alert

So many people struggling because of the economy must make difficult decisions about how to spend their money. One area of crisis not discussed often is personal insurance. We hear many stories about how insurance companies are not being managed well, but rarely hear about how people are choosing not to purchase and/or renew insurance policies. I am greatly concerned at the number of people choosing to drive without automobile insurance. As most of you know, I spent many years as a partner in a law firm that had a department devoted to defending automobile accident cases. We were hired by insurance companies to represent policyholders. As a result, I was repeatedly exposed to the potential costs associated with being an accident victim – bodily injury as well as property damage. In regard to bodily injury claims, the damages associated with not being able to work/go back to work are exceptionally high; this is especially true for an athlete. An athlete who cannot perform her normal duties as a basketball player stands to potentially lose a tremendous amount of money throughout her career and life. This is in addition to the already high costs of medical care.

How is this relevant to you? Recently, I have been told by numerous insurance industry friends that the economy is causing a record number of people to not pay for automobile insurance and to purposely drive without insurance. Many of these people also do not have substantial personal assets. As a result, if one of these people cause an accident, his/her victim will NOT have any insurance coverage from him/her. In addition, it is unlikely the victim will be able to get any type of civil recovery from the person who caused the accident because if he/she cannot afford insurance, it is likely his/her assets are not great either. Where does this leave you? If you are also not insured, it leaves you with absolutely nothing. However, if you are like most people and have insurance, you must contact your insurance broker/company as soon as possible to ensure you have adequate uninsured motorist coverage. Uninsured motorist coverage is part of most policies that allows you to be covered if you are hit by a driver who is not insured. However, just like any other portion of an insurance policy, it has limits of insurance and exclusions. As an athlete, you are NOT the same as a "normal" driver; you have greater insurable needs because of your level of income. Therefore, you must ensure that the uninsured motorist coverage you have will provide enough benefits to cover and protect you and your future – in other words, you must ensure the limits of your insurance policy are high enough.

Please contact me as soon as possible with questions. Also, remember that I am eager to help you speak with your insurance professional.

Basketball Camps

Each year (except 2003 when the WNBA Collective Bargaining Agreement was being renegotiated and the season was almost canceled), there has been a WNBA pre-draft combine. The league invites 40 to 50 women to spend 2 or 3 days doing drills and playing games in front of all WNBA Coaches/GMs. The combine has most recently occurred in conjunction with the Women's Final Four. This year, we have been told the combine is cancelled. Below I will briefly explain what I feel this will mean for an athlete. This is especially important because several private "camps" or "combines" have already started advertising to college coaches and athletes as being necessary for a player to get exposure. Some camps even say they are sanctioned, sponsored, endorsed or approved by the WNBA, but this is 100% not true. The WNBA does not have an official or sanctioned camp.

Do NOT be mistaken – these camps are for PROFIT. The agents/people running the camps will charge a fee, and the athletes will also have to pay their own travel and lodging. These camps are also not picky – they usually allow anyone who pays to participate. This creates a situation where the basketball being played is BAD and the risk of injury is very great. Most importantly, VERY, VERY rarely have any of these camps resulted in an athlete being invited to a WNBA training camp. This will especially be true this year, with reduced WNBA roster sizes, training camp limits and one less team. The WNBA and the WNBA teams already have been following the majority of the athletes they feel will be drafted during the college seasons. They know who these players are and what they can do. Going to one of the above camps really cannot do anything to improve a visible player's chances as WNBA teams have already seen her play live and/or on tape. The only women who could potentially be helped are players right on the edge of being considered by the WNBA. Even then, I cannot see how these players could be helped by going to one of these camps – at least helped any greater than by their college coach and/or agent speaking directly with teams on their behalf. The camp games are like being on a playground with playground attitudes and physical play.

THE ECONOMY AND WOMEN'S BASKETBALL

As an agent, there is nothing that gives me greater satisfaction than watching my clients play a game they love and get paid to do so. For female basketball players, that has meant being in the WNBA or overseas. The economy has profoundly affected both of these opportunities and, as a result, it is critical that an athlete fully and realistically understand what this will mean to her career. Equally important is how an agent will personally ensure an athlete's success, happiness and safety in this fragile climate.

THE WNBA

Initially, although the Houston Comets being disbanded was not completely unexpected, it did signal/confirm several issues. First, the economy has and will impact the league. The most apparent effect will be enhanced competition for reduced roster spots. In the past, each WNBA team could carry up to 13 players. In addition, the Collective Bargaining Agreement (CBA) required all teams to fit their total salaries within a minimum (floor) and maximum (cap) level. Historically, this has meant that each team has carried a mixture of rookies and veterans on a roster of 12 or 13 players. Now, while the maximum amount of players a team can carry has been reduced to 11, the salary cap remains the same. In computing the 2009 salary cap, veterans (3 or more seasons in the league) must earn a minimum of $51,000 and a maximum of $99,500. For the 2009 season, rookies will earn from $35,190 for a third round pick or free agent to $44,945 for the first through fourth picks in the first round.

So, what does this mean? Teams will likely carry fewer rookies and inexperienced free agents in an effort to keep more veterans. Regardless of what level players are signed, there will be much less opportunity to make a WNBA roster. With each team losing up to 2 players and Houston folding, there are up to 39 less spots in the WNBA. One thing is certain – there will be much more competition for EVERY available spot.

What can/should an athlete do to enhance her opportunity to make and stay on a team?

• Be healthy and rested at the start of the WNBA training camp. Expect to fight for a spot against players who are very hungry. An athlete cannot afford to lose any time because of injury or fatigue. She must be prepared to arrive at practice first and be the last to leave. Dive for every ball and NEVER take a single play off.


• Offer flexibility to a team. We all know what will likely happen if a team can chose between one player who can play three positions and another player with the same talent level who can only play one. With a limited amount of money to spend and fewer spots on each team, it is likely that players who can fill multiple roles will be most desired. An athlete cannot say or act as if she is “just” a point guard, for example, if she can truly also play wing. She must learn to say “I CAN do that” instead of “WHO will do that”. Starting now, an athlete must use her free time to work on shooting and ball handling.


• Ensure you are the right fit for the right team. As an agent it is my responsibility to ensure my clients have the best possible opportunities to succeed. With the right amount of preparation and research, I should know what type of players each team wants and/or should want. This includes matching a particular athlete’s strength and style of play to a team’s needs. In the WNBA, it is NOT about when you are drafted or how successful you have been in the past. The most important factor is “fit” –whether a team needs you and whether it will use you in a way that highlights your unique ability.

OVERSEAS

This has been the most challenging season overseas in my 12 years as an agent. There have been multiple teams, including several that are historically exceptionally strong, that have declared bankruptcy and/or stopped playing. This is in addition to the GREAT amount of teams that are not paying players at all or paying them late/incorrect amounts. I have been contacted by up to 10 women each day (who are not my clients) who are desperate for someone to answer their questions and/or help them. In years past, most agents did not have to do much work for their commissions; they got their clients overseas and then sat back and collected the money. Also, the rising commissions have attracted NBA agents who are used to gaining tremendous commissions for their efforts. This is really the first year that things have made it hard for agents and they have actually been called upon to truly work.

As a result, agents have shown their true colors. So many have not wanted to work for the money they may or may not get (including reduced commissions), do not care enough about their clients to do the work, do not know how to do the work, and/or have too many clients to do the work. I have likely been contacted by over 100 female players in the last 3 months – all being abused and/or neglected. This is incredibly sad. While there are still incredible teams with equally incredible opportunities, the way agents and athletes have conducted themselves in the past overseas must change.

Here are a few things you should consider for this and next season:

1. Remember that I AM responsible for what happens to my clients, and I need their help to ensure I can do my job. I will not know something is wrong unless my clients tell me. It is imperative we communicate at all times. There will ALWAYS be people trying to create trouble – they may be agents, other players and/or team personnel. Everyone has an agenda. My clients have to learn to worry only about themselves and keep focused on whom they can always trust. Trust and communication are the KEYS to success overseas. My clients can help me do my job by keeping me updated and informed.

2. It is imperative that I ensure a team is financially sound and honorable – not just that a team has money at the start of the season, but that it will have money during the entire season and at the time of each of my client’s payments. I need to get as much money as I can up front, leave as little money as possible for the end and build in penalties if a team is late or disregards a payment. I have to get my clients paid in American money and have the team wire it to the US for them. I must discuss each of these points in detail with my clients and continue to discuss them throughout the season. It is my job to remain in constant contact with the teams and anyone else relevant to ensuring my client’s personal and financial success.

3. Realize that salaries overall will be smaller overseas. As a result, we must work to increase other factors that will make a team appealing. We need to look to places where my client will enjoy living. We need to get more plane tickets, a better apartment, and increased benefits. In other words, we need to increase the tangible rewards my client will actually possess and not have to rely on the team to either pay or not pay each month. We need to always look forward together – what experience does my client need and want overseas and what country/teams will give that to her?

4. Treat this as a business. We must always remember that each client is overseas to make money and improve her skills. She must work hard and treat every game as a job interview. Teams in better places and with more money will always be watching her and her stats, and it is my job to ensure they do. We need to look at each game as a potential interview for the future. As a result, I need to constantly push the teams to give us what we need for each client. Teams use a you to win games and make sponsors happy, and I need to use them to help my clients earn money and further their careers.

I hope this information helps. The economy is troubling, and I must be smart in moving my clients’ careers forward. I am committed to each of them and take personal responsibility for their careers. It is a commitment I love and intend to keep.