Harrison Butker, the top-tier NFL kicker for the Kansas City Chiefs (and something of a Christian celebrity), has just secured a record-breaking 4-year contract extension worth $25.6 million, making him the highest-paid kicker in history.

Yet that isn’t what is most amazing about the story.

Harrison Butker represented himself in the negotiations. He had no agent negotiate the contract for him, and he will be paying no agent fees.

Now, it’s worth mentioning that Harisson Butker still has a booking agent for speaking engagements, and it seems that he also has an agent who handles brand endorsements – something sports agents in particular often do. But with his historic salary agreement, Butker decided to go it alone.

Far from being suckered, Butker secured an enviable deal. 70% of the salary is guaranteed, under the terms of the contract, and he’s saved himself a good deal of money by forgoing the agent.

But it isn’t just football, it seems. Across industries, some are questioning the formerly unquestioned value of using an agent, which is having real-world effects as we speak. But is it wise to do away with your agent?

Read on.

What Does an Agent Do?

Agents act on behalf of clients, typically in contract negotiations when a salary or fee is concerned, especially in arts, entertainment, and sports. Really big celebrities will often have the opportunity for brand endorsements, and agents handle these negotiations as well. Agents’ compensation is tied to the deals that they secure, and this percentage varies depending on the arena.

In publishing, literary agents typically take 15% of a book deal.

In film, an actor’s agent will take around 10% of the actor’s earnings.

A booking agent for a performing artist, particularly for musicians, earns 10-20%.

What is the take for a sports agent representing an NFL player? 1.5-3%, which might not sound like much, but in Butker’s case, he saved himself around a million dollars by cutting out the agent.

Contrary to common conception, agents usually do not go out and find opportunities for their clients. If you land an agent as a writer, for example, your agent is generally not going to set up a book tour, pound the pavement looking for new projects to get you hired on, etc. What will they do? Negotiate the contract once you have a book that’s ready to sell, and once that contract is signed, they’re typically done with their part. Managers are the ones who have more to do with career development, finding new opportunities, and bringing in work for an artist, athlete, or entertainer.

Naturally, the average actor does not have an MBA with a knack for contract negotiations, and the typical linebacker is not a JD with a background in contract law. So the fees, while sometimes high, are worth it if the agent can bring you a higher total take than if you had represented yourself and ended up with a rotten deal.

After all, the big publishing houses – or the movie studios – or the record companies – or the NFL teams – do this every day. How many contracts is one star going to have to do? Expertise and pure experience are almost always on the side of the one paying out. If the agent can level the playing field, hopefully, you can end up with a better outcome. No one is going to argue that 80% of $1 million is a lot better than 100% of $200k, for example, but 80% of $200k is obviously not better than 100% of $200k. In other words, it all comes down to the agent’s ability to increase your earnings on any given negotiation and protect you from bad clauses in a deal.

Some of the time, people question if agents are worth their commission.

Right or wrong, this line of questioning has led to some major changes, specifically in the world of real estate.

Real Estate Agent’s Commission Cut Again

When buying or selling a house, you almost always have two agents involved: one for the buyer and one for the seller. They bring to the table their expertise, their understanding of the law, their connections, and their familiarity with what is on the market right now. But with changes in access to information and technology, the value of these things has somewhat diminished in the average consumer’s eyes.

After all, a search on Zillow or LoopNet can show you what’s on the market. You can google a lender, read reviews, and make a decision without really needing a recommendation. You can even watch videos on clauses to look out for in your contract, read up on the regulations, and inform yourself all without ever leaving your couch.

And 6% of a home sale – often the largest asset a family owns, and usually financed – is a lot of money. The average home price in the US is now $500k (with the median at over $400k). 6% of that is $30,000.

When you can pull up listings in a few seconds on Zillow, is a $30,000 fee reasonable?
A recent court case says no. Things are going to change for real estate agents, as well as buyers and sellers, very soon.

A real estate agent’s compensation is a little complicated anyway – the standard used to be about 6% for home sales, covered by the seller, split between the buyer’s agent and the seller’s agent. But that’s not all, because the agents still have to give at least 1/3 of their commission to their broker – and usually at least half. Putting all of that together, a real estate agent used to take home about 1.5% of the home selling price.

That seems a bit more reasonable, but to the consumer, why should that number be multiplied by four, and all borne by the seller?

The NFL’s Top Talent

At the end of the day, the argument all comes down to ROI. Harrison Butker was able to negotiate a record-breaking salary, but also great NFL player Lamar Jackson, a fine quarterback who plays for the Baltimore Ravens, was lambasted for months for his decision not to hire an agent to represent him in his contract negotiation. The going story was that Jackson’s refusal to hire an agent had already cost him around $40M and would surely cost him more in the future.

And then, just last year, he signed a contract that made him the highest-paid player in the NFL at the time of the deal.

Lamar Jackson represented himself in that negotiation, worth $260 million, of which $135 million is fully guaranteed, with a $72.5 million signing bonus. Even sports agents are saying he did rather well.

What Lies Ahead for Agents

Travel agents are, except for a few small niches, essentially gone from the world of business. The typical residential real estate agent may be far less common in the future. It seems unlikely that sports agents will suffer the same fate, but these large, unrepresented contracts suggest that nobody should get too comfortable. Successful agents have to hustle every day to prove the value they bring to their clients – which isn’t much different than what everyone in business has to do.

People will never lose the need for representation, at least in some arenas. But as technology, culture, and information accessibility continue to shift and change, we’ll be keeping an eye on what is and is not considered an “agent situation.” But before you write off the industry, remember that the pendulum always comes swinging back the other way.

Quick Hits

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• Sony will no longer seek to acquire Paramount Pictures, according to CNBC.
• Christianity Today highlights the top moments of Paris 2024 where Christian athletes were able to share their faith.
• Disney posted a small profit from streaming and films last quarter, but parks profitability wanes.
• Shopify outperforms Q2 expectations and looks to continue growth.
• A Chik-fil-A in Virginia is now open on Sundays… for church services to accommodate a displaced congregation. They are not, however, serving food, and drinks, or operating the restaurant on Sundays, as the fast food chain remains firmly committed to a six-day workweek.
• Starbucks swaps out its CEO for Chipotle’s top exec, Brian Niccol.

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