In August of 2019 the NCAA announced new guidelines and restrictions for agents who want to work with student-athletes. The new rule indicated that prospective agents must pass a test, have three years of experience and have completed their college degree.
Six hours after releasing their new guidelines the NCAA released an amendment modifying the certification requirements that would no longer require a bachelor’s degree for a prospective agent so long as they are certified by the NBPA (National Basketball Association’s Player Association.)
So why the new rule? And why flip-flopping within six hours of releasing the new rule? For those who follow the sports industry, it’s not unheard of to see the NCAA release new addendums and regulations only to back track days and months later. But in this case the new ruling was a first of its kind. And the backtracking was within hours.
Those in the media immediately knew who the rule was directed at and coined the term for the new ruling as:
“The Rich Paul Rule.”
Rich Paul is the founder and president of Klutch Sports Group and the Head of Sports at United Talent Agency. Since its inception in 2012, Klutch Sports Group has represented over 55 professionals including some of the biggest names in sport. Draymond Green, Eric Bledsoe, Anthony Davis in the NBA alongside high profile NFL athletes such as DeVonta Smith, Bijan Robinson, Odell Beckham Jr among many others.
His highest profile client is a native of Rich Paul’s home territory as the two met in the Akron airport back in 2003, a prominent athlete by the name of LeBron James.
For some, Rich Paul is known as the founder of Klutch Sports Group.
For others, he’s known as the guy rewriting the playbook of how to be an agent in the player empowerment era.
For a lot of people, he’s simply known as the guy who caught a lucky break and is riding the coattails of one of the world’s best athletes in LeBron James.
In an industry known for pariahs, transactional individuals, and greedy suits with slicked back hair, Rich Paul has shown up in an authentic fashion from the start.
Hailing from a rough Cleveland Glenville environment with no college degree, Rich Paul has managed to grow an agency that has negotiated BILLIONS of deals for athletes and he is quite likely the most powerful broker in professional sports.
So what exactly is the Rich Paul Rule?
The Rich Paul Rule:
The rule from the NCAA that limits contact with student athletes by agents who lack specific qualifications.
The Real Rich Paul Rule:
Who you are is more important than what you do, how much you're worth, what success you accumulate.
Let’s take a deeper look into the approach Rich Paul has taken in his rise from Cleveland poverty all the way to Beverly Hills office suites. If we look closely Rich Paul has shown up authentically himself by way of three things. Focus, relationships, and service.
Authentic Focus
Who you know gets you in the door, who you are keeps you there.
At the time of this writing, Klutch Sports Group is 10 years old. Dating back to the early days of Lebron James professional career there has always been a soft spoken unimposing business man in his posse. The 6’1” Rich Paul has been by Lebron’s side since the two met in the Akron Airport as Lebron approached Paul because of his retro Warren Moon throwback jerseys that Paul had been selling out of his trunk. The trusted advisor and agent to one of the world’s best athletes, Rich Paul certainly isn’t shy about acknowledging that the foot in the door for his profession came from his first client, LeBron James.
Being a trusted ally to LeBron James certainly generates the necessary street-cred to attract other high-profile clients as well. Many have minimized the success of Rich Paul, indicating that he’s really only where he’s at due to catching a lucky break in the Akron Airport in 2003. It can be easy to minimize the success of Klutch Sports Group as if it only exists because of LeBron James.
Was the relationship with LeBron a foot in the door? Or was it the entire door in and of itself?
From Rich Paul’s perspective it was the start. A foot in the door into a room reserved for elite degrees and wealthy power brokers. His first client, paid 4% of every deal negotiated. To this day, all his clients pay 4% of every deal negotiated. With the success of his first client, more clients have come flocking. But what exactly are they attracted to?
“You attract people in this industry because of WHO you are. Not what you are doing.” - Rich Paul
From the jump, Rich Paul has been focused on helping the client.
Help the client, help the family.
When you are winning, the reliance on focus must increase. When things are going well the necessity for authentic focus is paramount.
As Klutch Sports Group has risen in prominence it has been a target of many in an industry disrupted by Rich Paul’s presence. With disruption comes distraction. With distraction, comes the opportunity to condense focus back to what matters most.
At any stage of an endeavor we are continually going to be given an opportunity to focus on what matters most.
What matters most to you?
The beauty of focus is that it can always be regained. If you’ve lost sight of what is important to you, there is an endless supply of focus waiting to be channeled.
For Rich Paul it was never about chasing down 10 clients. It was to get 1 client and do the best job possible for that client and then move forward.
The success in serving one client allowed other clients to follow.
Focus on what matters most.
Authentic Relationships
“I don’t feel like I’m in competition with anybody. Everyone is not for us, or an ideal client for us.”
In an industry known for flash and wealth, Rich Paul has taken a dramatically different approach. While most agencies will woo potential athletes with sports cars and photoshoots to display a position of power and wealth, Rich Paul has declined.
They don’t throw money at potential clients. They develop relationships with clients to serve them before their professional career, during their professional career and after their professional career.
“It doesn’t really make sense to make all this money if after you’re done playing you have all these bad habits and you don’t really know how to live and more importantly you don’t have a mindset that allows you to thrive.”
When the client thrives, the agent thrives. When the relationship is at the forefront there is a better chance of all parties thriving.
Rich Paul’s relationship first approach has disrupted an industry of con-artists and predatory advisors.
To say it’s contrarian would be an understatement. The reality is it’s an approach to life.
In the highest of stakes business, where being relational is viewed as meekness, Rich Paul has doubled down on authentic relationships. In the process he has turned down clients. Declined the quick “buck” and developed a network of athletes built on strong relationships.
It’s nearly impossible to be authentically you without authentic relationships because we were all made to be in relationship with others. No one is meant to be a lone wolf. Nor should lone wolfing be viewed as genuine success.
One of the best ways to ensure you’re being authentically you is to take inventory of how often the authentic “you” is showing up. Is your daily approach full of a high amount of “proving” or “hiding?” Are meetings full of fake kindness, fake smiling and faking a role in order to get ahead in deals or your career?
How many authentic relationships can you count within the context of your professional pursuits?
Is that number where you want it to be?
Authentic Service
So what industry is Rich Paul truly disrupting? Representing professional athletes, brokering billions of dollars in deals. Being the point person for not only the most notable athlete in the world, but an entire stable of elite athletes in multiple sports.
From Rich Paul’s view he’s not in the player representation industry - he’s in the service industry.
He’s there to serve. And over the course of a decade his service minded leadership has attracted a plethora of “who’s - who” in the athletic and entertainment world.
“I’ll carry the client's gym bag everyday. We get out of the car and head to the gym. I'll carry the bag with the shoes in it, no problem.”
Maybe the reason why you’re struggling to find meaning in your leadership life is that you still think you’re in the leadership industry.
You think you’re in the education industry.
The legal industry.
The healthcare industry.
The banking industry.
The athletic industry.
The coaching industry.
As long as we relate to our industries as an endgame in and of themselves instead of a vehicle by which we flourish in the service of others we will always struggle and will always have a hard time focusing and developing relationships.
Rich Paul’s net worth is close to $120 million and he is carrying a gym bag full of sweaty clothes and used sneakers.
Is the service industry one you are cut out for? Or is that just reserved for the bellhop down the street?
If you have been given influence over one person - you’re in the service industry. If every day people sit under the sound of your voice as you lead - you’re in the service industry.
Maybe the reason why Rich Paul has been so disruptive has less to do with who he knows, and more to do with the way he has authentically served in a role that typically wants to be served.
That’s the thing about flourishing individuals. They are off-putting to self-seeking individuals . They are off-putting to an entire industry of self-seeking individuals. Some environments will throw up walls to keep a service-minded individual out. They’ll make up fake certifications and require illustrious degrees to create barriers of entry to people who flourish in the service of others.
Authentic Focus - What are you focused on?
Authentic Relationships - How strong are your connections?
Authentic Service - Are you truly in the service industry?
The Rich Paul Rule
Who you are is more important than what you do, how much you're worth, what success you accumulate.