Which of the following statements about an Agent's license is true?

An agent cannot operate without a valid license because holding a proper license is essential for ensuring that the agent meets the regulatory standards set by the governing body, in this case, FIBA (International Basketball Federation). This requirement helps maintain professional integrity and compliance in the sports management field, thus ensuring that all agents are qualified to handle contracts and negotiations in a manner that aligns with FIBA's regulations.

The importance of a valid license underscores the role that agents play in facilitating professional sports transfers, contracts, and negotiations. Without a license, an agent would lack the authorization to represent players or teams officially, which could lead to legal implications and jeopardize their clients' interests. This necessity is part of a structured approach to the profession, aiming to safeguard both the agents and their clients within the basketball environment.