Introduction
If you want to work as a professional agent for athletes, you might need more than just experience. In many states, you must get a license—and part of that process includes getting something called an athlete agent bond. This bond helps protect the athletes you represent by making sure you follow the rules and act responsibly.
What Is an Athlete Agent Bond?
An athlete agent bond is a kind of surety bond designed to protect the interests of athletes. This type of bond, also known as an Athletic Agent Bond, ensures that if an agent breaks the law or acts carelessly and the athlete loses money because of it, the athlete can claim this bond.
Like other surety bonds, an athlete agent bond includes three main parties:
- Principal – The athlete agent who buys the bond.
- Obligee – The state agency that requires the bond.
- Surety – The company that issues the bond and promises to pay if something goes wrong.
If the agent fails to follow the rules, the surety company may pay the athlete for any proven loss. Later, the agent will have to pay the surety company back.
Which States Require This Bond?
Athlete agents are not required to have this bond in every state. However, some do, such as:
- Georgia
- Iowa
- Pennsylvania
- Oklahoma
- California
- Ohio
- Alabama
- Texas
If you’re not sure whether your state requires this bond, it’s a good idea to contact your state’s athletic agent licensing office.
How to Get an Athlete Agent Bond
Getting an athlete agent bond is simple. You just need to:
- Fill out an online form with your personal and business details.
- The surety company will check your application along with your credit background.
- Then, they will give you a price quote based on how much the bond is worth.
How Much Does It Cost?
The price of an athlete agent bond is based on the regulations set by your state. Bonds are usually between $10,000 and $50,000, but you don’t pay the full amount. Instead, you only pay a small percentage, usually 1% to 10% of the bond’s total value.
For example, if your state requires a $20,000 bond and the rate is 5%, you will pay $1,000.
Can You Get One with Bad Credit?
Yes, but it may cost more. Surety companies look at your credit score and financial history before offering the bond. If you have bad credit, they may still approve your application, but you’ll likely have to pay a higher percentage of the bond amount.
In Summary
An athlete agent bond protects athletes if their agent acts unfairly or breaks the law. It’s required in some states and is an important part of being a licensed athlete agent. You can still get an athlete agent bond even with bad credit, though it may come at a higher price.
