Niche News

FTC requests information from 20 universities on sports agents' compliance with SPARTA

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Key takeaways

  • The Federal Trade Commission is seeking information from 20 universities.
  • The request concerns whether sports agents complied with the Sports Agent Responsibility and Trust Act (SPARTA).
  • SPARTA requires agents to provide specific disclosures to student athletes and to notify schools.
  • The action is described in an FTC press release (link provided in source).
  • The inquiry is an information-gathering step to assess potential compliance, not a stated enforcement action in the source text.

Follow Up Questions

What is the Sports Agent Responsibility and Trust Act (SPARTA)?Expand

The Sports Agent Responsibility and Trust Act (SPARTA) is a U.S. federal consumer-protection law, passed in 2004, that regulates how sports agents deal with student athletes. It bans certain unfair or deceptive practices (like false promises or secret gifts), requires specific written disclosures when an agency contract is signed, and makes agents and students notify the school shortly after a contract is made. Violations are enforced by the Federal Trade Commission (FTC) as unfair or deceptive acts or practices.

What specific disclosures must sports agents give to student athletes under SPARTA?Expand

Under SPARTA, when entering into an agency contract with a student athlete, an agent must: • Provide a separate written disclosure document to the student (or their parent/guardian if under 18) at the time the agency contract is made. • Obtain the student’s (or parent/guardian’s) signature on that disclosure document before the contract is finalized. • Include, right next to the signature line, a bold, conspicuous warning that: (a) signing with an agent may cause the student to lose eligibility to compete as a student athlete, and (b) both the student and the agent must notify the school’s athletic director (or equivalent) within 72 hours of entering the contract or before the next athletic event, whichever comes first. SPARTA also requires that agents notify the student’s school within that 72‑hour / next‑event window after an agency contract is signed.

What documents or records has the FTC asked the universities to provide?Expand

According to the FTC’s press release and description of the letters, universities are being asked for information and records showing: • Whether sports agents provided the required SPARTA disclosures. • The dates when athlete agents notified the school that a student athlete had entered into an agency contract. • The names of the agents involved. • Any complaints or reports the school has received about an athlete agent’s relationship with a student athlete. The FTC’s “Template Access Letter (SPARTA)” is referenced but not viewable in full here, so there may be additional, more detailed record requests in the actual letter template that are not publicly described in detail.

Does the FTC's information request typically lead to enforcement actions or penalties if noncompliance is found?Expand

An FTC information request like this is a fact‑finding step and does not automatically lead to enforcement or penalties. However, under SPARTA, violations are treated as unfair or deceptive acts under the FTC Act, and the FTC can bring enforcement actions using its usual powers if it finds evidence of noncompliance. State attorneys general can also sue under SPARTA. Whether any specific enforcement action follows depends on what the FTC learns from the information it gathers; the press release does not announce any penalties or cases tied to these letters.

How were the 20 universities selected and which schools are included?Expand

The press release states only that the letters were sent to “20 universities … which all have NCAA Division I sports programs,” but it does not list the schools or explain the selection criteria. The publicly available FTC materials (press release, related consumer alert, and model letter description) do not identify which specific universities are included or how they were chosen, beyond noting that they have Division I programs.

What deadline have the universities been given to respond to the FTC's request?Expand

The FTC’s letters request that universities respond by March 23, 2026, according to the agency’s press release.

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