FTC Seeks Answers From Division I Universities on Sports Agent Compliance With Student Athlete Protection Law

Key Takeaways

• FTC Inquiry Launched: The Federal Trade Commission is seeking information from 20 Division I universities on sports agents’ compliance with SPARTA.
• Disclosure and Notification Requirements: SPARTA requires agents to provide specific disclosures to student athletes and notify schools within 72 hours of signing an agency contract.
• Prohibited Recruiting Practices: The law bans false statements, misleading promises, and providing anything of value to athletes before contracts are signed.
• University Reporting Requested: Schools are being asked to share notification dates, agent identities, and any complaints or reports involving sports agents.

Deep Dive

Federal Trade Commission officials are seeking information from 20 universities as part of a new inquiry into whether sports agents working with student athletes are complying with federal requirements designed to protect those athletes.

In a recently released statement, the FTC said it has sent letters to 20 universities with NCAA Division I athletics programs requesting information related to agents’ compliance with the Sports Agent Responsibility and Trust Act, commonly known as SPARTA. The law requires sports agents to make specific disclosures to student athletes and to notify schools when an athlete enters into an agency contract.

“Agents that work with student athletes have responsibilities and legal requirements including notifying colleges and universities when their student athletes have signed agent contracts,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “This inquiry is aimed at better understanding whether sports agents are complying with the law and the degree to which student athletes are being protected.”

SPARTA, enacted in 2004, establishes clear obligations for sports agents who recruit or represent student athletes. Before entering into an agency contract, agents must provide athletes with a written disclosure that includes specific, legally mandated language. Once a contract is signed, agents must notify the athlete’s school within 72 hours or before the athlete’s next eligible athletic event, whichever comes first.

The law also prohibits agents from recruiting student athletes through deceptive practices. This includes providing false or misleading information, making false promises or representations, or offering anything of value to the athlete or individuals associated with the athlete prior to the signing of an agency contract.

According to the FTC, the letters sent to the 20 universities seek details on whether sports agents are meeting these obligations in practice. Specifically, the agency is asking schools to provide information on when agents notified them of agency contracts, the names of the agents involved, and whether the institutions have received complaints or reports related to an agent’s relationship with a student athlete. The FTC has requested responses by March 23, 2026.

All of the universities contacted participate in NCAA Division I athletics programs.

The FTC also encouraged student athletes, parents, and schools to report concerns related to sports agents or potential violations of SPARTA directly to the agency.

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