The valuations in these rankings were compiled through extensive research into the client rosters and contracts negotiated by each agency in the team sports of basketball, football, baseball and hockey. The total contract value under management for each sport was then multiplied by the maximum agent commission (or average where no maximum exists) as allowed by each respective players’ association. Such rates are as follows: NFL (3%), NHL (4%), NBA (4%) and MLB (5%). Thus, agencies are ranked in order of the maximum commissions obtainable from the negotiated contracts, instead of the total value of the contracts.
Due to the small total MLS league payroll and the lack of credible information concerning overseas agency rosters, soccer was not factored into these valuations. While potentially quite lucrative, sports such as tennis and golf were also excluded because of how wildly earnings for players in each of these sports vary from year to year. While agencies also earn income from negotiating marketing and endorsement contracts for their clients, the overall value derived from any such deals is negligible for the average player. While no concrete data exists, Forbes estimates that average professional athlete may make an additional 1-2% of their overall player contract in endorsement earnings, and their agent(s) earn just 20-25% of that.
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