Texas Athlete Agent Surety Bond
Texas athlete agents must register with the Texas Secretary of State before recruiting or soliciting certain athletes or entering into an athlete agent contract.
As part of that requirement, an athlete agent must provide a $50,000 surety bond payable to the State of Texas.
Who Must Register as an Athlete Agent?
Texas regulates athlete agents under Chapter 2051 of the Texas Occupations Code.
An athlete agent must obtain a certificate of registration from the Texas Secretary of State before recruiting or soliciting an athlete to enter into an athlete agent contract, financial services contract or professional sports services contract.
Texas registration applies to individuals rather than organizations. The Secretary of State distinguishes between professional athlete agents and limited athlete agents.
Professional athlete agents generally must be certified by at least one national professional sports association. Limited athlete agents may represent athletes in sports that do not have a national professional sports association that certifies or licenses agents.
Texas Has Two Different Athlete Agent Bonds
Which bond applies depends on the activities the registered athlete agent will perform.
Athlete Agent Surety Bond
Before contacting an athlete or entering into an athlete agent contract in Texas, an athlete agent must deposit a $50,000 surety bond with the Texas Secretary of State.
This is the standard athlete agent bond required under Section 2051.151(a) of the Texas Occupations Code.
Financial Services Surety Bond
An athlete agent who provides financial services or enters into a financial services contract with an athlete must provide a separate $100,000 surety bond.
This is an additional bond and does not replace the standard $50,000 athlete agent bond.
Do You Need One Bond or Two?
If you are acting only as an athlete agent and are not providing financial services, the standard requirement is the $50,000 Athlete Agent Surety Bond.
If you will also enter into a financial services contract or provide financial services to an athlete, Texas requires the additional $100,000 Financial Services Surety Bond. Confirm your intended activities before purchasing the bond.
What Does the Athlete Agent Bond Guarantee?
Under Texas law, the $50,000 bond is payable to the State of Texas and is conditioned on the athlete agent complying with Chapter 2051 of the Texas Occupations Code.
The bond also supports payment of administrative penalties assessed under the Act and certain damages awarded to an institution of higher education or an athlete arising from prohibited conduct involving things of value offered or provided to an athlete or an athlete’s family member.
The bond protects the public and affected parties. It is not professional liability insurance for the athlete agent.
The Texas Act Focuses on Intercollegiate Athletes
Currently Eligible Athletes
The Texas definition includes an individual who is eligible to participate in intercollegiate sports as a member of a team or as an individual competitor at an institution of higher education.
Certain Former College Athletes
It also includes certain individuals who previously participated in intercollegiate sports but have never signed an employment contract with a professional sports team.
Athlete Agent Registration Comes Before Solicitation
According to the Texas Secretary of State, an athlete agent must register before directly or indirectly contacting an eligible athlete.
Registration is also required before entering into an athlete agent contract with an athlete covered by Chapter 2051.
The current annual filing fee for athlete agent registration is $500.
Providing Financial Services to an Athlete?
A Separate $100,000 Bond Applies
Before entering into a financial services contract with an athlete, an athlete agent must deposit a separate $100,000 surety bond with the Texas Secretary of State.
The financial services bond protects against specified violations and losses connected with the agent’s financial services activities. If this applies to you, verify that you are obtaining the correct bond in addition to your standard athlete agent bond.
How to Obtain a Texas Athlete Agent Bond
Determine the Bond Type
Determine whether you need only the standard $50,000 athlete agent bond or also the $100,000 financial services bond.
Start the Application
Open Lavon Insurance’s bond platform and select the appropriate Athlete Agent bond result.
Complete Underwriting
Provide the information requested by the surety and complete any required underwriting.
File With Texas
Submit the required bond and athlete agent registration documentation to the Texas Secretary of State as directed.
Find Your Texas Athlete Agent Bond
The button below opens Lavon Insurance’s surety platform and displays the Athlete Agent bond results. Confirm that you are selecting the bond and amount required for your activities before beginning the application.
Verify Your Athlete Agent Requirements
The Texas Secretary of State administers athlete agent registrations and bond filings. Review the current state requirements before contacting an athlete or entering into an athlete agent or financial services contract.
Texas Athlete Agent Bond FAQs
How much is the Texas Athlete Agent Bond?
Is there also a $100,000 athlete agent bond?
Do I need both the $50,000 and $100,000 bonds?
Do I have to register before contacting an athlete?
Can a company register as the athlete agent?
What is the Texas athlete agent registration fee?
Does Texas require an examination for athlete agent registration?
What happens if an athlete agent violates Texas law?
What happens when I click the application button?
What if I am unsure which Athlete Agent Bond I need?
Ready to Apply for Your Athlete Agent Bond?
Determine whether you need the $50,000 Athlete Agent Bond, the additional $100,000 Financial Services Bond, or both, then open our surety platform to begin.
Bond approval and premium are subject to surety underwriting. Registration and bond requirements are determined by Texas law and the Texas Secretary of State.