How Agents Make Money Out Of Rookie Contracts

September 26th, 2014

(originally posted elsewhere)

The general rule for agents is that their earnings off of negotiated player contracts are capped at 4% of the player’s salary. Indeed, 4% is an assumed amount unless otherwise agreed upon, as outlined in section 3(B) of the Standard Player Agent Contract:

If the Player receives compensation in excess of the minimum compensation applicable under the CBA for one or more playing seasons, the Agent shall receive a fee of four percent (4%) of the compensation