Professor Tim Davis tells Yahoo! Sports fidiciuary agents should act primarily for the benefit of their clients
Research | Comments Off
September 5, 2012
MIAMI – The NFL Players Association is investigating the relationship between agent Drew Rosenhaus and a former financial adviser who persuaded a number of players to invest in a failed Alabama bingo casino, a source with knowledge of the inquiry told Yahoo! Sports.
According to multiple sources who talked to Y! Sports on the record and for background, Rosenhaus and Jeff Rubin had an unusually close business relationship that spanned upwards of seven years. That relationship might have resulted in Rosenhaus breaching the fiduciary duties all agents who are certified by the NFLPA owe to their clients. The relationship has been scrutinized in part because of a series of issues surrounding Rubin, who is at the center of a bankruptcy filing for the failed casino that cost the players as much as $43.6 million.
Starting in 2003, Rubin was questioned about financial transactions that could have raised red flags for a financial adviser, a five-month Y! Sports investigation has found. That included allegedly mismanaging a player’s game checks in 2003 and settling an issue related to allegedly falsified insurance documents in 2004.
The NFLPA is looking into whether Rosenhaus should have paid closer attention and kept his clients away from Rubin, founder of Pro Sports Financial. Multiple sources, including free agent NFL wide receiver Terrell Owens, indicate Rosenhaus actively recruited players with Rubin and valued that association because it helped him increase his business. Although Rosenhaus specifically denied any relationship to the casino and there is no evidence to indicate he profited in any way from the project, his client base grew to more than 100 players during the seven years Rosenhaus and Rubin were associated. Rosenhaus currently represents about 140 players, more than any other agent in the NFL.