To work as an athlete agent in Maryland, you are required to obtain a Maryland Athlete Agent Bond. This bond is a type of surety bond that makes sure athlete agents follow state laws and treat athletes fairly. It’s required under the Maryland Uniform Athlete Agents Act
An athlete agent helps athletes find jobs, sponsorships, and contracts. The Athletic Agent Bond safeguards athletes against dishonest actions such as fraud, misrepresentation, or contract violations. It serves as a safety net for both athletes and other affected parties.
How the Bond Works
The bond includes three people:
- Principal – the athlete’s agent who needs the bond
- Obligee – the State of Maryland
- Surety – the company that provides and guarantees the bond
If the agent breaks the rules, someone who suffers a loss can file a claim. The surety might cover the claim initially, but the agent is responsible for repaying that amount to the surety afterwards. The bond does not protect the agent; instead, it protects others from any misconduct or negligence by the agent.
How Much Does It Cost?
In Maryland, the bond amount is usually $25,000. But agents don’t pay the full amount. They pay only a small portion of the total bond amount, known as the premium. This is usually between 1% and 5%, depending on the agent’s credit score and finances. For example, if you have good credit, you might only pay $250–$1,250 per year.
You can still get a bond even if you have poor credit, although the cost may be higher. Some companies offer special programs to help those with low credit scores meet the requirements.
Why This Bond Is Important
There are many reasons why Maryland requires this bond:
- It ensures agents follow the law.
- It protects athletes from bad behaviour or broken promises.
- It holds agents accountable for their actions.
- It builds trust between athletes and agents.
- It helps reduce risk for everyone involved.
Who Needs This Bond?
Anyone applying to be an athlete agent in Maryland must get this bond. This applies to anyone who represents athletes in negotiating contracts, securing endorsements, or managing sponsorship agreements.
How to Get the Bond
You can get the bond by contacting a licensed surety bond provider. They will ask for personal and financial details. Once approved, you’ll pay the premium, and the bond will be issued—usually within a few days.
What If a Claim Is Filed?
If someone files a claim, the bond company will check if it’s valid. If they pay the claim, you (the agent) must repay the amount. If you don’t, it could hurt your credit and make it hard to get bonded again.
Conclusion
The bond is valid for one year. You must renew it each year by paying a new premium. If you don’t get bonded, you could face fines or lose your license. While the bond protects others, you may also want to buy liability insurance to protect yourself and your business.
