Triple A For Action Sports
What’s more risky than dropping in on a 50-foot wave at Mavericks? Legally speaking, it could be acting as the athlete agent for the guy who’s doing it.
California’s law governing athlete agents, the Miller-Ayala Athlete Agents Act, or “AAA,” is an important, and frequently misunderstood law with serious consequences.
For action sports industry players, it is important to know what deals are covered. The AAA imposes strict requirements on athlete agents that protect not only athletes but also the companies that sponsor, endorse, or work with the athletes and their agents.
The AAA applies when an athlete is involved in the transaction. If a deal requires the contracting party to pay compensation to an athlete, it is likely covered by the AAA.
However, many contracts are not covered by the AAA even if they indirectly benefit athletes.
For instance, a company might sponsor a surf competition, but the deal between the sponsor and the organizer is not covered. The distinction is that no athlete was involved in the deal, even though athletes were involved and received compensation in the underlying event.
Another common situation in the action sports industry is when a company sponsors an athletic team rather than the athletes on the team. When a company sponsors the team itself, rather than the athletes on it, the contract is not covered by the AAA.
When the AAA applies, it is harsh, and failure to know the law is not a defense. If athlete agent fails to comply with the AAA, the action sports companies who are adversely affected may have recourse against the agents for significant sums of money.
