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.