$53K Per Violation!

Scam text overlaid on distorted 100 dollar bill

A new compliance inquiry by the FTC targets sports agents, threatening the stability of college athletics.

Story Highlights

FTC investigates compliance with SPARTA at 20 top universities.
Potential penalties for non-compliance could reach up to $53,088 per violation.
Inquiry could reshape agent interactions in college sports.
Universities must respond by March 23, 2026.

FTC’s Inquiry into SPARTA Compliance

On January 12, 2026, the Federal Trade Commission (FTC) initiated an inquiry into 20 NCAA Division I universities to evaluate sports agents’ adherence to the Sports Agent Responsibility and Trust Act (SPARTA). This move comes as a significant step to ensure that sports agents fulfill their legal obligations, such as providing necessary disclosures to student athletes and notifying schools within required time frames. The investigation underscores the FTC’s commitment to safeguarding college athletes from potentially exploitative practices by agents.

Potential Consequences and Compliance Requirements

SPARTA, enacted in 2004, mandates that sports agents must inform student athletes of their rights and provide a disclosure form before signing contracts. Additionally, agents must notify the respective schools within 72 hours or before the athlete’s next event. Non-compliance could result in substantial fines, with civil penalties reaching up to $53,088 per violation. This inquiry could prompt agents to reassess their practices, ensuring adherence to the law to avoid hefty penalties.

The FTC’s Bureau of Consumer Protection, led by Christopher Mufarrige, emphasizes the importance of this inquiry. Mufarrige stated that the initiative aims to understand the degree of compliance by sports agents, thereby protecting student athletes. Universities are required to submit information about agent notifications and any complaints by March 23, 2026, further demonstrating the FTC’s proactive stance in addressing potential violations.

Impact on College Athletics and Broader Implications

This inquiry could have far-reaching implications for college athletics, particularly in the context of the evolving landscape of college sports, including Name, Image, and Likeness (NIL) deals. The enforcement of SPARTA highlights the necessity for comprehensive regulation in ensuring athlete protection. It also aligns with broader reform efforts, such as proposed legislation like H.R. 6350, which seeks to enhance protections for student athletes.

The scrutiny of agent compliance could also influence future amendments to SPARTA or integration with NIL reforms. For universities, this presents an administrative challenge in documenting compliance, while for agents, it signifies a potential shift in how they engage with student athletes. The FTC’s inquiry signals a vigilant oversight approach in college sports, aiming to maintain integrity and fairness.