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That isn't really the precise topic of this post. That title is just a cheap trick to make sure lots of agents will read, get angry, and contribute to lively debate.



What is the topic, however, is an interesting thesis from Wayne M. Croley, (sent to me by Nate Jones) about what kind of effect an NBA agent can have on NBA salaries. In most cases, he implies, a barstool could negotiate your NBA contract without costing you a penny (tell that to Bonzi Wells!). Here's the paper's abstract:

Most players are represented by an agent or attorney who negotiates salaries and benefits on behalf of their clients. In this thesis I evaluated the effectiveness of these negotiators by evaluating the NBA collective bargaining agreement (CBA) and developing a dataset that allowed me to examine the factors that explain player salaries. I conclude that revenue sharing and the NBA CBA allow players to earn high salaries, and that a player's choice of agent does not usually affect level of salary. However, representatives with a good reputation tend to have a greater affect on their clients' salaries than representatives with lesser reputations. I find that variation in player salaries is best explained by variation in their performance. I also find that star players receive very large salaries because team owners believe they generate fan excitement and additional revenue.

I should point out that the paper is really about NBA salaries--not marketing income, which is another huge piece of the reason to pick one agent over another. (For some players, like LeBron James, the endorsement income is more than the salary.)



In setting up his argument, Croley makes several interesting points. For instance, that the NBA operates like a cartel, and points out that unlike major league baseball the NBA is not immune to antitrust law. He also cites evidence white players are paid somewhat more than comparable black players. Fascinating read.



Then there's one of the great mysteries of the NBA, bizarre evidence that NBA players can be duped out of money pretty easily, if you have the right kind of pull:

A recent phenomenon in the NBA has been the rise of attorneys that negotiate contracts for players. The most prominent attorney representative is Williams and Connolly LLP’s Lon Babby who has star clients such as Tim Duncan, Grant Hill, and Ray Allen. Unlike traditional sports agents, attorney representatives charge hourly fees to their clients. An agent that negotiates a 5 year $10 million dollar may receive $80,000 per year in fees, while an attorney that negotiates the same contract in 60 hours at $500 an hour would charge a one time fee of $30,000! Though attorney representatives may be able to replicate many of the same services as agents at a lower cost, players have been reluctant to switch to them. Players instead continue to show loyalty to traditional sports agents who are under the same restrictions as attorneys.

For those of you keeping score at home, that's $400,000 in fees over five years, compared to a one time fee in the neighborhood of $30,000. Tim Duncan, Grant Hill, and Ray Allen are known as three of the smartest players in the NBA. Just saying...