In an important move, the Federal Trade Commission (FTC) is reaching out to 20 universities with Division I sports programs. They want to know if sports agents working with student-athletes are adhering to federal laws concerning their conduct. This inquiry, announced on January 14, 2026, aims to protect the interests of these young athletes.
The FTC’s investigation stems from the Sports Agent Responsibility and Trust Act, which was developed in 2004. Specific letters have been sent to schools, asking for details on agent compliance by March 23. Notably, the FTC has not disclosed which universities are involved.
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, emphasized the importance of this inquiry. He stated it seeks to understand whether sports agents are following legal protocols and effectively protecting student-athletes.
The letters request information from July 1, 2021, when rules changed to allow athletes to profit from their name, image, and likeness. Schools are asked to provide information on when athletes signed contracts, how they notified the institution, any complaints against agents, and copies of contracts with personal details removed.
The federal sports agent law prohibits agents from giving false information or any benefits to athletes before contracts are signed. Many states have similar laws, known as the Uniform Athlete Agent Act, which is enforced in at least 40 states. Penalties can vary, but cases are notoriously difficult to prosecute. For instance, in North Carolina, legal actions against a former NFL agent and others for providing improper benefits to players have dragged on since 2010. Most cases either ended in dismissals or plea deals, with a notable mistrial occurring in 2020.
In a rapidly changing landscape, the relationship between student-athletes and agents is under scrutiny. As more athletes explore ways to monetize their talents, understanding the obligations of agents becomes crucial. According to a recent study by the NCAA, nearly 60% of college athletes are unaware of their rights regarding endorsements and contracts. This lack of knowledge highlights the importance of compliance and transparency in the world of sports agents.
As this inquiry unfolds, it raises questions about the protection of young athletes and their rights. What does the future hold for college sports, and how will regulators ensure compliance? Only time will tell, but this is a significant step toward accountability in an industry that has seen its fair share of scandals. For more in-depth information, check out this FTC press release.
