Are All Supplemental Draft Prospects Character Risks?

05 Tuesday Jul 2016

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These days, if you’re looking for a pro football fix, you’re pretty much left with the NFL’s Supplemental Draft, which is slated for later this month. Of course, comparing the supplemental draft with the NFL draft is like comparing a toy car with a Ferrari.

Finding supplemental draft success stories isn’t easy. It’s been quite a while since the ‘supp draft’ was turning out players like Miami’s Bernie Kosar and Steve Walsh, Ohio State’s Cris Carter, Alabama’s Bobby Humphrey and Syracuse’s Rob Moore in the late 80s. Since then, there have been solid players here and there but no consistency. In fact, the only one that really stands out in the past decade is Baylor’s Josh Gordon, who, ahem, turned out to have character issues.

It made me wonder if all such players that wind up on the post-draft scrap heap have obvious character warts, since so few ever get drafted and fewer still make a real impact. I reached out to six scouts this morning with just that question. Answers mostly confirmed my thesis, though some were mixed.

  • One scout said that in the “75-90 % range” of cases, it’s either character or an NCAA-related issue such as a player who was waiting on an eligibility ruling that came in late.
  • Another scout said most supp draft prospects are “not necessarily bad people,” though he allowed that sometimes such players are bad apples.
  • One strongly disagreed, calling my thesis way too broad. “I’ve never seen a study but personally I don’t believe that would be a very factual statement,” he said, and indicated that he feels most players in the supp draft are victims of circumstances beyond their control.
  • Another agreed with me, confirming that it’s “usually the case” that the player in question has off-field problems that are significant.
  • The final one I corresponded with said he wouldn’t say 90 percent had character issues, but said probably half did. “Lots of warts with supplemental drafting,” he admitted.

I guess the reason most teams pass on supplemental draft prospects is more because they don’t make the grade on the field than off the field. As always, however, character goes into each evaluation, and might tip the balance. How much is hard to determine.

 

Five Questions with NFL Network’s Aditi Kinkhabwala

01 Friday Jul 2016

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We try to offer plenty of tips, observations and other useful info for people aspiring to work in the business of football in this space, and we usually focus on folks who want to be scouts, agents, financial professionals or marketers. On the other hand, there’s the media track, and we haven’t done a lot with that. Today, however, that ends.

Technically, my inroad into the business came from the media, as I started off as a simple news writer for small papers before jumping to the Houston Chronicle, then to my own service, ITL. At any rate, our purpose is to give you ideas on how to break into the football world, so today, we talk to Aditi Kinkhabwala, who’s a national correspondent for the NFL Network.

Aditi started out with the San Antonio Express-News before moving on to the Bergen (N.J.) Record and the Wall Street Journal before landing with the network. Along the way, we traveled in similar circles and she became a friend. From here, I’ll turn it over to my super-intern, Mark Skol, who conducted this interview, and Aditi.

What is it like for you, day to day?: “On any given day, I can be sent to any team’s facilities. If it is during the week, then I’m covering, ‘what is the news of today or what is a story I feel is worthwhile to share with our readers?’ On game day, it’s different. On game day, I am on the field before the game and directing our viewers to what things to look for, what notable things happened during the week, and what can impact the game we are about to see. I do that right up until kickoff. I cover the game and after the game I secure a one-on-one interview and then I go into the locker room and talk to as many players as I can to get anything we may need as the week goes on. It’s a little bit different than when I was just a writer. You can’t edit yourself as much. When you’re writing, it’s different. For NFL.com, I don’t write as much as when I was a newspaper writer because there is more time spent on air, but I write a lot of columns or features.”

How did you get the job at NFL Network?: “It is almost serendipity. I was covering the New York Giants in their last Super Bowl run during the 2011 season. They were about to play the NFC Championship game in San Francisco. The NFL Network wanted a local ‘expert’ on air for a few minutes to discuss the Giants and this matchup. I went on air for I don’t even think four minutes. They asked me some questions and I guess the way that I answered caught the attention of the head of our newsroom David Eaton. David called me and said, ‘Have you ever thought about being on television?’ Thus began a couple-months-long process. We agreed to meet at the Super Bowl; we met for an hour and a half and began this process. I was very lucky because I loved my job at the Wall Street Journal. I loved my job and I wasn’t necessarily looking to leave and I wasn’t looking to leave newspapers. It was a great opportunity and here I am four years later.”

When did you think, ‘I have a cool job?:’ “I thought that all long. I wouldn’t have done what I do if I didn’t feel that way. I was always going to go to law school since I was 7 years old. My first aspiration was to pitch for the New York Yankees, (and) when I knew that wasn’t going to happen, I wanted to be a lawyer. I was an American Studies major at Cornell, and the sports writing in San Antonio was only supposed to be one year, maybe two years tops, and then I was supposed to go to law school. But somewhere, in the first two weeks working in Texas, I just thought, ‘this is awesome.’ It was because I was being paid to talk to people. It was my job to talk to people and find out their stories. I love to hear about other people and I was getting paid to do it. The craft of writing also appealed to me, the art of storytelling. I don’t know that one job has been cooler than a previous one. I’m not star-struck. Anytime I get to tell a story that is really meaningful, I think it’s really cool.”

What are some of the downs of the business?: “The travel can sometimes get very daunting when you are delayed for long periods of time and you are away from home. I have a young son. He just turned 11 months old. When my pregnancy was proceeding, it became a little bit difficult with the travel and the heat of the summer. Things like that are challenging but it doesn’t have anything to do with the nature of the job.”

What advice do you have for an aspiring journalist?: “Never be afraid to ask questions. Don’t ever think you know the story before you go in to find the story because if you have an open mind, you will often be surprised. Talk to people how you would want to be talked to. Know how you would want to be approached. Don’t be afraid of anyone. Treat people with respect and you will get respect in return.”

Status

30 Thursday Jun 2016

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Earlier today, my wife and I found out that our oldest son, Jake, was a late addition to the all-star swim meet for his region in his best stroke, breast stroke. My first instinct was to run to Facebook and post it (after all, isn’t that where it’s acceptable to brag these days?) but then thought better of it.

Many parents of NFL prospects aren’t so circumspect. It’s not just social media, of course. So many parents of NFL players — and, increasingly, parents of NFL hopefuls —  see their kids as their ticket to status, and they don’t mind using their sons’ agents (and even prospective agents) as a vehicle for that status. Here are a few examples.

  • Yesterday, I was on the phone with an agent who had his first draftee in 2015. Believe me, this young man was a surprise draftee by any measure. At any rate, by the by, the young man’s mother found out that his agent’s wife’s cousins are well-known actresses/singers. “Seems like an NFL player’s mom should be able to get a job with someone like that,” she chided the agent. When the agent politely explained that he couldn’t make that happen, he was the player’s ex-agent within a few months. “What am I supposed to do?” he asked me. “Tell my wife’s cousins that they should give my client’s mother a bunch of money?”
  • A few years ago, an NFL cornerback’s mother kept bugging her son’s agent to fly her cross-country to one of her son’s games. He had trained this player in the expectation that he’d go Top-100, but alas, he’d been drafted much later than that. Still, eager to please the player’s mother, he bought her flight. She promptly called. When he answered, ready to accept her thanks, instead she complained because her seat wasn’t in first class.
  • In 2006, an agent friend recruited an SEC player aggressively on the expectation that the young man would be a combine invitee who’d be drafted in the top three rounds. Though he got a Senior Bowl invitation, he was snubbed by the combine. This didn’t stop the player’s father from asking for a flight plus accommodations in Mobile. My friend swallowed hard and picked up the bill. However, when the player’s father asked for all his meals to be covered that week, my friend told him no. “I don’t think Reggie Bush’s agent tells him no,” the father replied.

These are just the stories I can think of off the top of my head. With recruiting starting to heat up, and players’ parents more entitled than ever, I’m sure I’ll be hearing plenty more similar stories in short order.

How To Block Financial Advisors From Stealing Athletes’ Money

22 Wednesday Jun 2016

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Today, I turn Succeed in Football over to Richard Leader of First Houston Capital. An ITL client for several years, Richard is a seasoned financial professional who not only works with players in the league but also writes a weekly newsletter that I’ve found exceptionally informative; has penned a book discussing basic financial principles in easy-to-understand language (and even got profiled in the Wall Street Journal because of it); and even writes a blog that’s published by the Houston Chronicle. He emailed me this morning out of alarm with the news that broke yesterday, so I asked him to write today’s blog post, addressing the matter.

On Tuesday, news broke of an alleged Ponzi scheme run by a Dallas-based investment firm.

The SEC has charged Ash Narayan, formerly associated with RGT Capital, with transferring money from client accounts without their knowledge or consent using forged or unauthorized signatures.  Victims include Denver Broncos QB Mark Sanchez and San Francisco Giants pitcher Jake Peavy, along with former Astros pitcher Roy Oswalt, with possible losses of more than $30 million.

This hits close to home to me for two reasons: I’m based in Houston, so I share a state with Narayan, and like him, I’m part of the NFLPA’s program that licenses and regulates financial professionals.

Obviously, this is disturbing news for any fiduciary handling money for others.  Nothing is more important than client trust, and this sort of news gives the financial industry a proverbial black eye. The fact is, however, that such a scheme is easily avoided in the first place by taking precautions.

Money managers should employ a well-regarded and well-capitalized custodian (typically a regulated bank or trust company) that provides clear separation between the decision-making investment manager and the client’s money.  Client assets should be held in the client’s name for safekeeping, with the custodian not connected with the investment advisor/manager.

At First Houston Capital, we use Pershing LLC, a unit of BNY Mellon, one of the largest financial institutions in the United States, with net capital of over $1 billion and almost $1 trillion in assets held in custody. Pershing’s financial strength provides the first measure of protection for our clients.

Secondly, Pershing is a member of the Securities Investor Protection Corporation (SIPC).  As a result, securities in ours account are protected up to $500,000 by the federal government.  On top of that, Pershing provides private insurance coverage in excess of SIPC limits from underwriters at Lloyd’s of London. This insurance provides protection for assets held in custody with a loss limit of $1 billion over all of clients’ accounts.

A simple background check of both the investment advisor and the investor’s custodian would help professional athletes and their agents avoid the devastating financial consequences of events like the news Tuesday morning.  There are additional safeguards which can also be considered on the advice of the client’s attorney. The bottom line, however, is that none of this has to happen, and with a few simple steps, it won’t.

What’s Summer Like for NFL Scouts and Execs?

21 Tuesday Jun 2016

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The perception is that after the June mini-camp is over, that’s pretty much it for the NFL until players report in late July. However, I didn’t know for sure that that was true, so I reached out to several scouts and other friends in executive-level positions.

Most area scouts I spoke to said their teams give them the summer off, for the most part. “I drink beer, go to concerts and (baseball) games,” said one scout. “Re-charge and do my fall schedule. I work for a team that values family time.”

Another agreed that it’s basically off time for the summer. “Post-draft is usually the first chance scouts get to somewhat relax,” he said. “To me the best course of action is to take time and decompress.”

Of course, other teams see the summer as catch-up time. “Some teams have their scouts immediately begin watching tape and having all the future draftable players in next year’s draft written up by July 1,” one scout said. “I’ve had where I watched tape the entire summer, but you’re worn out already on tape by time camp begins.”

Watching tape is part of the summer activities for several scouts I polled. “I like to watch at least a few games of every prospect I will see in the fall,” one scout told me. “If I spread it out correctly, the workload isn’t too much and it helps me get ahead for the fall.”

The one thing that seems to be universal during the summer, at least for area scouts, is that they begin to decide when and where they’ll hit the various schools they’re scheduled to scout that fall. I was under the impression this was all mapped out by the Director of College Scouting, but this does not seem to be the case.

As for GMs, it’s an entirely different proposition. At the executive level, there’s a lot more work getting done. One source’s list included:

  • Set-up early boards for the next fall college evals.
  • Seniors and juniors to watch for.
  • Watch previous seasons tape on aforementioned.
  • Tag players that scouts had as draftable or PFA’s (priority free agents) that didn’t get to sign or make it thru OTAs (excluding injuries).
  • Evaluate the players that have finished two seasons to grade scouts.
  • Reach out to college tree on who they like in their conference as real guys – not their own teams.
  • Early prep on upcoming unrestricted free agents. Make sure who is in the last year, along with potential cap cuts, contract voidable, etc.
  • Potential trades and looking at excess on other teams’ rosters.
  • Thin spots by team.
  • Media comments on camp/OTA performances.

I guess the bottom line is that schedules vary, but even workaholics need a little time to reset so their brains don’t turn to mush.

‘They’re the Star’

17 Friday Jun 2016

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Today, I had a discussion with an ITL client who’s been an agent under five years. Though he’s still relatively new to the business, he’s incredibly knowledgeable and insightful, partially because he’s already had remarkable success in other football business fronts. Whenever he calls, I always check my watch, because I know we’re going to be on the phone for an hour and I have to make sure I’m not scheduled for anything for a while.

Anyway, today we were discussing recruiting, and the difficulty of converting a player from prospect to client, especially for people like him who’ve had tremendous success in business already (especially sports business). He said something that really resonated with me: “You have to realize that they’re the star.”

That was a Eureka moment for me. I’m always trying to convey to people new to the business, or who are considering the business, the challenges they’ll face. This is a great way to do it, especially to those who approach in the financial realm.

Many of these people manage money for doctors, attorneys, business owners and other high-net wealth individuals. This means they have millions, and sometimes billions, under management. It also means they have a certain amount of cache among people who themselves have cache. Then they come to the football world, and none of that translates. The truly elite player — i.e., the ones that will go in the top 30-40 picks, and the ones that will truly generate revenue — are super-specialized, and have been told that all their young lives. Financial advisors, even the good ones, are a dime a dozen, relatively speaking. To cross the bridge from just another guy to The One, that financial advisor has to do more than provide extra services, connect on a personal level and have the keys to the network that player travels in. He also has to swallow his pride, to some degree. That’s not so easily done, especially when you have to jump through so many other hurdles.

Brief story. I spoke at a seminar last fall, and while there, I met an accomplished financial advisor who was registered by the NFLPA, but who had not cracked the code for repping players. As he drove me to the airport, we talked, and he assured me he’d become an ITL client and take advantage of the tools we offer. However, as the weeks wore on, it occurred to him (apparently) that the nice car he drove, and the nice house(s) he owned, and the impressive clientele he worked with probably weren’t going to get him very far among flashy players in their early 20s. We lost touch, and I doubt I’ll hear from him again. Hey, I understand.

Of course, one day, these young men will be ex-players, and they’ll mature and start to realize the stature of the men who once begged them for their time. But it doesn’t matter then, does it?

 

On Big Firms Investing in Agencies

14 Tuesday Jun 2016

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I just got done watching this video, in which ESPN’s Darren Rovell interviews social media magnate Gary Vaynerchuk. Vaynerchuk just invested in Symmetry, the South Walpole, Mass.-based agency that includes Michael ‘Mook’ Williams and Brian McLaughlin. The agency will henceforth be known as VaynerSports.

Here are a few thoughts on things that might be hurdles, at least in the near future.

  • Building a brand doesn’t happen overnight. Pitching players on off-field opportunities is smart, no doubt about it. It’s probably the most compelling reason why players fire their agencies, especially when those agencies are still on the new side (as is Symmetry/VaynerSports). On the other hand, most players don’t want to spend countless hours blogging, hanging out on Skype, or whatever. This is especially true of the kind of players that Symmetry has on its client list, i.e., lower-profile linemen, etc., who aren’t by their nature particularly flashy. These players signed with Symmetry because they didn’t need a big, sexy agency. It might be a bit of an uphill climb to convince them they now need to go a different route to gain a Vaynerchuk-style presence that can be monetized.
  • Recruiting is taxing. You can tell in this video that Vaynerchuk (who’s always excited anyway) is super-charged by the opportunity to watch players, talk to players, get to know them, and otherwise enjoy the trappings of working in the business. Still, the ins and outs of the game; the bumps and bruises acquired by travel; the frustration of getting snubbed by players and/or their parents; the road blocks presented by well-meaning but overly bureaucratic schools; and the non-responses to celebrity that might come from NFL types, all tend to take a toll.
  • Recruiting the Northeast is tough. Being based in Massachusetts means there aren’t a ton of top recruits in your backyard, and though the firm has been able to establish its range with a few clients, for the most part, they’re going to have to keep extending that reach. That leads me to my next point.
  • Recruiting is expensive. As we’ve already established in this space, it costs about $35,000 to get a player rated in the top three rounds from college to draft. And those costs are only going up. Fortunately, Vaynerchuk’s got a good young agent (McLaughlin, who’s featured in the video) to help him avoid costly mistakes, but he’s going to have to fight the temptation to take shortcuts.
  • There are no guarantees in this game. Take Vernon Adams, for example. The Oregon QB came from a flashy school; has an exciting style of play that earned him plenty of media plaudits; did exceptionally well at the No. 2 all-star game, the East-West Shrine Game in St. Petersburg, Fla.; and otherwise acquitted himself well during the pre-draft process. Despite all of this, Adams couldn’t even get an undrafted free agent deal with the NFL, and was among the two-thirds of passers that were not selected by NFL teams and went unsigned after the draft. Now, he’s playing in Canada, where the margins are much, much smaller for agents.
  • Celebrity doesn’t always travel well. Though Vaynerchuk is undeniably talented and successful, it will take a little doing to get to the conversation stage with top prospects. For example, I think we can all agree that Morgan Stanley is established in the financial realm. Despite this, I’ve been told by some of my financial advisor clients that they’ll introduce themselves to a player as a Morgan Stanley advisor, exchange pleasantries, perhaps even give the player a business card, and still, as they part, the player will say, ‘nice meeting you, Mr. Stanley.’ Players tend to be laser-focused on their own careers and usually have a good grasp of pop culture, but don’t always have much vision outside of those worlds. Parents may be far more receptive, but ultimately, most players make their own decisions when it comes to agents.

As a student of the player representation business for almost two decades, this is an experiment, and one I’ll be interested to watch. But if it’s a success, I don’t expect it to be overnight.

Follow Your Passion (Mostly)

13 Monday Jun 2016

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I’ve always tried to be encouraging when I can in this space. We all have dreams, and plenty of people that discourage us from that dream. You don’t need someone else telling you you can’t do it, especially if your passion is like mine, to work in the football business.

However, last week, I saw this short video, and it made me think I need to make myself a little clearer.

If you want to be an NFL player, or a scout, or an agent, or a member of a football team’s administration, that’s great. But I urge you to understand when it’s time to maybe deviate a little from your goal. Follow your passion, but don’t be stubborn about it.

In the video, TV personality Mike Rowe discusses a septic tank cleaner he once profiled for his show, ‘Dirty Jobs.’ This wealthy owner of a sanitation business — literally, a dirty job — told Rowe that he looked to see which direction everyone else was going, and he went in the opposite direction. That’s pretty much my story, too.

When my buddy, Troy, and I launched our draft service, Lone Star Football, back in ’98, it’s fair to say that our unspoken agendas were to be recognized by an NFL team and hired as scouts. After four years, that didn’t happen, so I retooled. I basically went in the direction that was opposite everyone else. Even today, when I try to describe what I do, the person I’m speaking with kind of squints his eyes, then asks, ‘so you’re an agent?’ My job doesn’t fit neatly into a traditional role like scouting, or recruiting, or negotiating contracts. But that’s OK, because enough people get it that I’ve been able to make it into my business and support my family with it, and by God’s grace, we continue to grow.

This message is true even if you reach your one true passion, be it scouting or working as an agent or whatever. In my business, I work with several ex-scouts. One, in particular, got let go by a team a few years ago, and really struggled for a while before coming to the realization that he couldn’t sulk about not finding work. He had to find another way to make money, at least in the short run, realizing that scouting isn’t an entitlement. He got rehired by a team, but when the end came (again), he was ready, and already had an alternate profession. He’s thriving now because he was willing to face facts and live in the real world.

Today’s message is not meant to dissuade you from joining me in the football business (and I want to help you!). However, I want you to remember that if you go too far down a road that’s clearly too heavily trafficked, find a different path that gets you where you ultimately want to be. If that one gets too busy, try another one. Keep on looking until you find the one that best suits you and that people will pay you to do. That’s where your passion will really be rewarded.

 

Do Teams Really Grade Draft Trades on Points?

09 Thursday Jun 2016

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You get a lot of media narratives when it comes to the NFL draft. Some are true, some aren’t. One storyline that’s gotten a lot of traction is that Jimmy Johnson, during his time running the Cowboys in the 80s and 90s, he developed a value points system for every pick in the draft, and he used it to weigh the draft-day offers he’d get, as well as the offers he’d make.

One year, I was part of the draft broadcast team for a major radio network, and one of my counterparts was a guy who had spent a little time in an NFL front office and used it to market himself as a personnel guru. At one point, the host asked about the value points system, and I kind of brushed it off, explaining that teams wouldn’t lock themselves into something so one-dimensional. He overruled me, countering that all teams used it and it was a routine part of every team’s war room.

I’ve always wondered which one of us was right, so I asked several of my friends in scouting (seven, to be exact) about it. The responses I got fit into three categories.

  • “We don’t use it:” I only got this response from one team, but it’s one of the better franchises in the NFL. The scout said that, instead, the team compares the offer against similar previous offers and uses draft histories to evaluate each trade.
  • “We use it as part of our evaluation system:” One scout said his team uses 11 different charts to measure draft trades, and Johnson’s chart is one of them. One told me everyone uses it to some degree, and estimated that there are 3-4 other charts out there that teams use.
  • “We do our own charts:” One scout said his team uses its analytics people to develop its own value system for picks. Another scout said his team uses a chart that is very similar, but that his team does not use Johnson’s chart. Another scout said his team is always evaluating its charts and they change every year. Things can get pretty complicated: variables include the relative value of a position, which changes from year to year, the performances of players at differing places in the draft, etc. “It’s a very fluid chart,” one scout said, calling it “football’s version of the slide rule.”

In the end, I guess every team has its own way of doing things, but the idea of a chart, and assigning value to picks, is valid. I guess the main takeaway is that teams are always looking for ways to look at data and break the code for success.

NFL Agent Exam: Savoring Success

07 Tuesday Jun 2016

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This time of year is fun for me because it’s when we celebrate our successes at Inside the League.

With OTAs under way and rookie mini-camps in the rear-view mirror, there’s no more mystery about who’s going to be drafted and which players will line up an NFL contract despite not being selected. So many agents dream of having first-rounders in their inaugural year certified, but this is incredibly unrealistic. A far greater measure of success is simply having a player in the league in your first three years registered with the NFLPA. In fact, if you don’t have someone certified in that time, you have to start over, taking the exam again and paying the initiation fee.

For the last 3-4 years, we’ve spent June interviewing the agents we partner with who’ve had such success. It’s a lot of fun celebrating this accomplishment while learning a little more about their experiences in their first year, as well as how they wound up becoming contract advisors. Every year, only 15-20 independent agents — i.e., agents who came into the business with no connections, no hookups and no relatives slated to be first-rounders in the coming year — actually land a player on an NFL roster, and 70-80 percent of those agents are part of our team, I’m proud to say. That’s why it takes all month to interview them, and why we publish our interviews to the people taking the exam this summer in a daily newsletter.

This year, I turned the job of interviewing ITL clients over to my ace intern, Mark Skol. So even though I’m not doing the interviews myself, it’s still awfully informative to read each account.

One of them, Maryland-based Jon Howard, got interested in the business when he tried (unsuccessfully) to get his brother into the league.

Another interesting thing: opinions on the NFLPA exam really vary. Some of them feel the test was pretty easy (like Mississippi attorney Jay Bolin, whose interview is tomorrow). Some of them, like South Florida-based CPA and attorney Bob Engler, feel it’s quite hard. Others, like Baltimore-based attorney Gary Leibowitz, feel it should be a bit more practical and based on actual agent practices, rather than simply about the CBA. Most, but not all, used our practice agent exam (the only one on the Web) to get ready.

Of course, some of the things they’ve said weren’t exactly shocking. All of them are passionate about football and wanted to find some way to become involved in the game, and saw the agent avenue as easiest. One of them is my former intern, Murphy McGuire, whom you’ve already read about in these pages.

If you’re getting ready to take the exam this summer, I hope you’ll join us. One of the things you’ll get is access to our newsletter. I want you to be one of the people whom we write about next summer.