What is an Athlete Agent Bond?
If you represent athletes professionally, then you may need to hold a license as an athlete agent. Getting a license for this type of business includes posting an athlete agent bond.
This type of surety bond protects athletes and their interests. Athletes who suffer financial losses or damages because of agent negligence or violation of state laws can submit a claim against an athlete agent bond.
An athlete agent bond is a three-party contract, just like other surety bonds. The surety company provides the bond to the licensed athlete agent—the principal in the contract. The obligee is the state agency requiring the athlete agent bond.
If you would like to learn more about what surety bonds are and how they work, you can read our detailed guide here
Which States Require an Athlete Agent Bond?
There are a handful of states that require athlete agent bonds, including Georgia, Iowa, Pennsylvania, Oklahoma, California,Ohio, Alabama, and Texas. However, states have the right to change their licensing requirements and local municipalities may have requirements in your area as well.
If you’re unsure whether your state requires athlete agent bonds, you can check with your athlete agent licensing department.
How Do I Get an Athlete Agent Bond?
You submit an online application providing personal and business details and the surety company provides a fast quote for your athlete agent bond based on the total bond amount and a review of your credit.
What Does an Athlete Agent Bond Cost?
The requirements for athlete agents differ from state to state, including the amount of an athlete agent bond needed. The dollar amount of the bond dictates the price paid by the agent, because the cost is calculated as a percentage of the total bond amount.
Athlete agents may be required to have a bond between $10,000 and $50,000, depending on state guidelines. The price paid by the agent can range from 1 to 10 percent of the total bond.
Can I Get an Athlete Agent Bond if I Have Bad Credit?
In addition to the amount of the bond, the price you pay for an athlete agent bond depends on your personal credit. Surety companies offering athlete agent bonds need to review your financial track record to determine how much of a risk you pose as a bondholder.
Although it is still possible to receive an athlete agent bond with bad credit, having bad credit can lead to paying more for an athlete agent bond.