Individuals who act as athlete recruiters or solicitors must be licensed as an athlete agent with the Texas Secretary of State’s Registration Unit. To be eligible for a Certificate of Authority, and to maintain a license, an Athlete Agent Bond is required of all applicants.
Jet Insurance Company provides the Athlete Agent Bond as a financial guarantee to the Texas Secretary of State that the licensee will follow applicable athlete agent regulations and fulfill contractual obligations. If the athlete agent commits a license violation that causes financial damages to the athlete themselves or a higher education institution, the surety bond may be used as a form of restitution.
The required amount of your Athlete Agent Bond will depend on the details of your athlete agent contract(s). If you are providing a general contract only, you must hold a $50,000 bond. If you are providing financial services or entering into a financial services contract with an athlete, a $100,000 bond is required.
At Jet, rates for the Athlete Agent Bond will be a fraction of the required bond limit and are based on the personal credit of the applicant. If you are seeking the higher of the two limits, our underwriters may require additional information for review before we’re able to send you an approved rate.
For those seeking a $50,000 Athlete Agent Bond, take a look at our preferred tier rate options below.
Our monthly payment option is exclusive to Jet and is a great option if you are wanting to skip the renewal process. Once enrolled, your Athlete Agent Bond will remain active with the Secretary of State’s Registration Unit until cancellation is officially sought.
If you are looking to recruit or solicit an athlete into a professional sports contract or a financial services contact, you must apply for a Certificate of Authority with the Texas Secretary of State’s Registration Unit. According to the Registration Unit, an “athlete” is defined as a person who participates in intercollegiate sports at an institution of higher education such as a college or university.
If an athlete you are representing is part of a national professional sports association, you must be registered with at least one national professional sports association, such as the National Basketball Players Association or the Major League Baseball Payers Association.
If you are planning on representing an athlete that does not have a national professional sports association, you will be known as a limited athlete agent and are not required to be certified through a national professional sports association.
Whether you are an athlete agent or a limited athlete agent, you will need an Athlete Agent Bond to qualify for and maintain licensure with the Texas Secretary of State.
Jets application for the Athlete Agent Bond is fully online and can be completed anytime and anywhere for your convenience! The process will begin by asking you for some general information such as your contact details, an indication of the required bond limit, and your social security number for a soft credit check (this won’t affect your current score). Once submitted, a Jet underwriter will review your information and have approved rate options sent to your email. If further details are needed, we will contact you right away so that we can move forward with the bond process.
As soon as you’ve received your approved bond prices, simply choose the best option for you and fulfill the payment. Jet will then send you a copy of your receipt and bond form instantly.
The original signed and sealed Athlete Agent Bond must be submitted to the Texas Secretary of State’s Registration Unit along with your completed initial or renewal license application. The paperwork required can be found on the Athlete Agent Forms webpage.
The bond form and application paperwork must be sent to the following mailing address:
Texas Secretary of State
PO Box 13193
Austin, TX 78711
You can cancel your Athlete Agent Bond with Jet at any time! All we ask is that you send us a written cancellation request to [email protected]. Once received, the Jet team will send a termination notice to the Texas Secretary of State’s office. The liability of your bond will then be released within a 60-day period.
If you are enrolled in Jet’s monthly payment plan, you will be required to continue payments during the 60-day grace period as your bond is technically still active during this time. Once these steps have been completed, all future payments will cease and your bond will be officially cancelled.
It is important to note that the Texas Secretary of State requires your Athlete Agent Bond to remain active for a period of two years following the end of your active license or contract with an athlete.
Jet’s monthly payment enrollees don’t have to worry about renewing the Athlete Agent Bond! Your bond will remain active with the Texas Secretary of State’s Registration Unit as long as payments are fulfilled each month.
As for bondholders who purchased the Athlete Agent Bond in full, Jet will send you a renewal invoice via mail and email well in advance of your bond term expiration date. To successfully renew, simply complete the standard payment due and your bond will be all set for another term. It’s that easy.
Licensed athlete agents are expected to comply with all regulations pursuant to Title 13, Chapter 2051 of the Texas Occupation Code, as well as fulfill their contractual obligations. If license violations are committed, the Secretary of State’s office may inflict license and/or criminal penalties against the agent. It is also likely that anyone who has been financially damaged due to the agent’s transgressions such as a higher education institution or an athlete under contract may pursue civil action against them. This could lead to a bond claim.
A claim on the Athlete Agent Bond will typically only occur if the agent commits a breach of contract that causes financial harm to an athlete under contract or the athlete’s college or university. However, the damaged party will be required to pursue civil action against the agent without any help from the Texas Secretary of State. In cases where a Texas court rules in favor of the claimant, the surety bond may be used as restitution to cover any damages incurred by the harmed party.
It is in your best interest to try and resolve any issues with the Texas Secretary of State, a higher education institution, or the athlete under contract before serious and costly penalties ensue.
If you receive a Texas court-ordered bond claim notice, contact Jet as soon as possible. Once contacted, our team will brief you on how the claim process works and will ask that you provide us with all available information and documentation for our own review and investigation of the alleged transgression.
Per the Athlete Agent Bond form, Jet Insurance Company is legally obligated to payout justified claims up to the amount of the bond (payouts will never exceed the bond limit). You, the athlete agent, are responsible for your actions and are required to reimburse Jet if a bond claim payout is made on your behalf. Failure to complete this requirement will lead to future difficulties in obtaining surety bonds within the State of Texas, especially the Athlete Agent Bond that is mandated for licensure as an athlete agent.