Athlete Agent Bond Requirements
Some states, such as Texas, Oklahoma, Pennsylvania, Georgia, and others, require athlete agents to get licensed and to obtain a surety bond.
The athlete agent bond amount depends on the state requiring the bond. Scroll down for a full list of the states requiring the bond and the respective bond amounts.
Why Do I Need an Athlete Agent Bond?
The purpose of athlete agent surety bonds is to ensure that agents adhere to the law in their work. It protects professional sports athletes against potential harmful or fraudulent actions on the side of their agents.
The surety bond can provide financial compensation for proven damages. The sum that can be claimed depends on the penal sum of the bond that the athlete agent has posted at the time of licensing.
Need further details about the way bonding works? You can refer to our extensive ‘What is a surety bond’ guide.
If you need more information, you can contact our bond experts at (866)-450-3412.
What is the Cost of the Athlete Agent Bond?
The cost of your bonding depends on the bond amount that you have to provide. In the case of athlete agent bonds, it can be between $10,000 and $50,000, depending on the requirements in the state in which you are based. For example, Texas athlete agents have to meet a $50,000 surety bond requirement, while those in Georgia - $10,000.
Below are the states requiring an athlete agent bond and the respective bond amounts:
- Alabama - $25,000
- Arizona - $10,000
- Florida - $15,000
- Georgia - $10,000
- Ohio - $15,000
- Oklahoma - $50,000
- Pennsylvania - $20,000
- Texas - $50,000
In order to get bonded, you don’t have to pay the whole amount that is required of you. Your actual surety bond cost is called the bond premium. The surety that you apply with determines the exact percentage that you have to cover on the basis of a number of indicators.
Factors That Determine Your Bond Premium
The most important factors that shape your bond premium include:
- Personal credit score
- Personal and business finances
- Fixed and liquid assets
- Professional experience
The better indicators you can showcase, the lower the cost of your bond can get. The rates for applicants with stable finances typically start at 1%of the required bond amount.
To see a ballpark estimate of your bond cost based on your credit score, you can refer to the table below.
|Athlete Agent Bond Cost Based on Credit Score|
|State||Bond Amount||Credit Score|
|Above 700 - 600||Below 600|
|Georgia and Arizona||$10,000||$100-$300||$300-$500|
|Florida and Ohio||$15,000||$150-$450||$450-$750|
|Oklahoma and Texas||$50,000||$500-$1500||$1500-$2500|
How Do Bond Claims Work?
Athlete agent bonds provide protection to athletes through a mechanism called claims. If an athlete suffers damages due to the unlawful, negligent or fraudulent actions of their agent, they can file a claim against the agent’s bond.
The surety that has provided the bonding has to examine the case. It assesses whether the agent should receive financial reimbursement based on the facts around the claim. If the case is proven, the bonded party - the agent - has to provide the necessary compensation up to the penal sum of the bond.
Since bond claims can lead to financial and reputational harm, the best course of action is to avoid situations that can give rise to them.
How to Get an Athlete Agent Bond
Ready to apply for your surety bond? You can complete the form through the banner below to get started.
We will send you a free quote and then you can continue with the steps in the bonding process.
Need more details about the athlete agent bonding requirements? Don’t hesitate to call us at (866)-450-3412.