LeHab
Registered User
- Aug 31, 2005
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The Major League Baseball Players Association is fighting a bill in Delaware it believes exposes players to troublesome gambling conflicts, while the sponsor of the bill believes it will help benefit minor league players whose minuscule salaries force them into "difficult financial realities."
The Professional Athlete Funding Act, which this week passed through the Delaware House of Representatives and is scheduled to be voted on by senators Sunday afternoon in the last day of the legislative session, would enforce regulations on so-called "brand agreements." The deals, which have become commonplace in the past five years, typically offer players a lump sum of money in exchange for a fixed percentage of future earnings.
The bill's benefactor, former Philadelphia Phillies pitcher Michael Schwimer, has for two years lobbied legislators in Delaware to adopt laws he said will shield athletes from those seeking to take advantage of them. Schwimer is the CEO of Big League Advance, one of the most prominent brand-agreement companies, and has used venture-capital funding to pay more than $50 million for percentages of 167 players' potential major league salaries.
"There's one reason and one reason only for this bill: to protect players from bad actors," Schwimer told ESPN. "Unfortunately, the current law doesn't protect players."
The MLBPA believes the proposed law does not, either -- a sentiment that is backed by Major League Baseball, according to sources. Both agree the bill does not go far enough in regulating the industry after representatives rejected proposed amendments before passing the bill 29-12 earlier this week. If the senate passes the bill Sunday, it would go to Gov. John Carney (D) to be signed into law.
https://www.espn.com/mlb/story/_/id/27089441/mlbpa-continues-fight-brand-agreement-bill
Interesting concept for baseball players without generous signing bonuses where the road to the majors can be long while earning almost non-existant. Any hockey players have similar deals?