By Matt Dawson
Australia is a nation of avid sport watchers. For us, sport
is all about entertainment. But professional sport is also big business and
behind almost every success story is an athlete manager.
It was not until the late 1990s, in the lead-up to the
Sydney Olympics, that the athlete management profession really took off in
Australia. Previously most athletes saw having a manager or agent as an
unnecessary expense.
Apart from those engaged by international stars like Greg
Norman, Kieran Perkins, Pat Rafter and a handful of footballers, athlete
managers were an unknown commodity.
Wayne Loxley, owner of White Line Management, has been an
athlete manager for 17 years. He started his career as a teacher, working with
special needs students for seven years before moving into coaching, fitness and
administrative roles at Subiaco Football Club, in the Western Australian
Football League (WAFL).
It was his interest in mentoring young footballers that led him
into the burgeoning profession.
“I have always had an interest in the development of young
people. I started back in 1996 with a mate of mine. We embarked on managing
footballers initially. We moved onto other athletes or sports people as we went
along,” he says.
Three-time World Champion boxer Danny Green with Manager Wayne Loxley after a fight (supplied by Wayne Loxley) |
At the height of his career, Wayne Loxley had 25 AFL players
on his books, along with a few athletes from individual sports. Three-time boxing world champion, Danny Green
is the most internationally renowned, and according to Mr Loxley, an athlete
who demonstrated mental strength rarely seen. He worked as part of the ‘Green Machine’ team
for 11 years where he was responsible for Danny Green’s media and promotions.
Athletes competing overseas, such as NBA basketballer Andrew
Bogut, are generally Australia’s highest paid sports people. Mr Bogut, a 29-year-old Melburnian, recently
negotiated a three year contract, reported to be worth $44 million.
However behind Australia’s sports superstars, the household
names, there is a cast of thousands of athletes, many competing in Olympic
sports, trying to earn enough money from their sport to make ends meet.
“If you are getting into the business purely to make money,
you are getting into it for the wrong reasons. That is one of the problems with
the industry now,” Mr Loxley says.
Domestically, the Australian Football League (AFL) is the most
financially lucrative. It is the football code with the biggest television
audiences and the most teams. There are
840 players in the AFL whose careers, on average, will last just six years. In
2012, the average player salary was $251,000.
Player managers normally take a three to five per cent cut
for negotiating a client’s playing contract with a club. To manage the affairs
of a middle-of-the-road AFL player, they are looking at between $7,500 and
$12,500 per year.
“You might get 10 to 20 per cent of any sponsorship,
marketing or media opportunities, but the only players who get those are the
very good ones. The majority of players don’t get those extra endorsements,” Mr
Loxley says.
Sam Maxwell, 25, who owns his own sports management company
in Perth, agrees that AFL offers the best financial opportunities but can be a
challenging industry.
“The flipside is that it is so competitive. It is hard to
break into the industry. AFL’s a bit of a boy’s club. If you are someone who
doesn’t have AFL industry experience, it can be a little bit tougher,” Mr he says.
Mr Maxwell, who studied law at the University of Western
Australia, always thought he would start his career as a lawyer.
“I probably never set out to be an athlete manager. It’s not
something I planned for. Because of my own sporting background and who I grew
up with, I knew a lot of high level athletes,” Mr Maxwell says.
He studied law with Matt Ebden, a 26-year-old professional
tennis player with a career high ranking of 61.
Certainly not a household name, Mr Ebden had his best year on the ATP
circuit in 2012, earning over US$450,000 in prize money.
Sam Maxwell (left) with Matt Ebden (bow tie) at a Tennis Australia Awards Night (supplied by Sam Maxwell) |
“He and I were good friends and coming towards the end of
our law studies, I was just helping with a couple of small contracts. I really
enjoyed that. One athlete went to two, and it probably wasn’t until I had six
or seven on my books that I thought I could make a business or a career out of
it,” Mr Maxwell says.
He manages athletes in swimming, track and field, cricket
and tennis. Among them are world champions, Olympians and national
representatives.
But the money he makes from managing the affairs of his 13
athletes is not enough to sustain his business. He employs two staff, one
part-time, to assist him with school tennis coaching and sports event
management, his other business interests.
“The only time you make a little bit as a retainer is to
help the guys with their travel and competition schedule. You might do the
contract between them and their coach. But you don’t take a commission on that.
The only time you are actually getting paid is when they get a paid
sponsorship,” Mr Maxwell says.
Australian athlete managers’ lives rarely resemble that of
Jerry Maguire. It is less “show me the
money” and more daily grind, ruing missed opportunities and sweating on
obscure results.
Tennis sponsorship contracts often contain triggers for re-negotiation
based on ATP world rankings.
“A lot of contracts have a trigger at 50 or 60 in world.
When you get to that point, you start negotiating a pretty sizeable deal,” Mr
Maxwell says.
Last year, he was left sweating on an obscure tennis match
result at a tournament in the US. A win
would have meant one of his clients breaking into the top 60 and opening up substantial
commercial opportunities. However, the
match went to three sets and his client lost.
Mr Maxwell says the prerogative of an athlete and manager is
often different. The athlete focuses on the process of improving as a player,
knowing the ranking will look after itself if they get that right.
“You want that to happen too because you know if they keep
improving, they will get those deals. But especially when it’s that fine, you
think, ‘well had it been that one extra result, it would have made a big
difference’,” he says.
Ending a long time association with an athlete amicably is
another challenge managers face.
“It comes down to the type of relationship you have had
along the way. Footballers, once they get to 28 or 30, are young men who are
married and have got their own lives. You are trying to get them through those
earlier years where their life does change quickly because of income, fame and
media interest. You are trying to help them through that transition period,” Wayne
Loxley says.
Mr Loxley is currently taking long-service leave from his
role as Chief Executive Officer of Athletics Western Australia. He has managed to successfully combine this
role with his athlete management work.
“I was fortunate that the Board of AWA was good enough to
let me combine both. As long as you are getting the job done, that is the most
important thing,” he says.
Today, his firm operates on a much smaller scale, currently
looking after West Coast’s Josh Kennedy as well as four mid-range AFL players.
Sam Maxwell is currently considering a takeover offer from a
large sports management firm. The deal
would give him more financial security but would result in a loss of autonomy. His crop of athletes would sign on with the
firm, which already has more than 70 athletes on its books.
Athlete managers gain a rare insight into the attributes
needed to succeed in professional sport. According to Wayne Loxley, the
characteristics of a champion often transcend the playing field.
“The most successful people are often the best people. They
are not trying to be anything they are not. They are natural in what they are
doing, they work hard but they also respect and appreciate other people and
their skills. Those athletes become family friends almost; you invite them
around for dinner. You get to know them on a personal level,” he says.