Sports Agent Commission Economics

Shaan shares details about how sports agents make money and gives a specific example of a small agency's economics.

"Sports agents typically make 2-3% of their athletes' contract value. For example, if you have an NBA max player making $40M a year, and maybe his buddy on the team who's a mid-level player, and together they make $50M - at 2% commission, you'd make $1M a year as an agent.

It's a cutthroat, ruthless business where agents try to backstab each other and steal clients. There's a lot of wining and dining on the good end, and bribery and shit talking on the bad end.

Ben told me about some friends who have an agency with 3 people. Their athletes under contract bring in about $3M total per year. The main agent banks about $2.5-2.6M himself, and the other $500K goes to operations and paying the other two people's salaries."