Attorney
In recent years, college athletes have gained the right to monetize their name, image, and likeness (NIL) to take advantage of the growth in popularity of college sports. While this is a long-overdue move towards fairness, NIL contract negotiations can quickly become overwhelming for young adults and their families. Given that, you might wonder, “Can student-athletes hire professional agents to negotiate agreements on their behalf?”
NCAA Rules on NIL Representation
In 2021, the NCAA implemented an interim policy on name, image, and likeness, allowing student-athletes to monetize their personal image and brand. The NCAA rules on NIL have three primary aspects:
- First, student-athletes can engage in NIL activities if they follow the state’s laws where they attend school. Colleges and universities have a responsibility to ensure student-athletes’ NIL activities comply with applicable state law.
- Student-athletes who attend school in states without NIL laws can engage in NIL activities without violating NCAA rules.
- Student-athletes may obtain professional advisors and service providers to help them engage in NIL activities.
State Laws and School Policies
The current system of NIL rules for student-athletes places the burden of regulation on the states. As a result, many states in the U.S. have passed laws or regulations governing student-athletes’ rights and responsibilities for monetizing their NIL rights. In addition, many colleges/universities and athletic conferences have rules governing student-athletes’ ability to monetize their NIL rights. For example, many schools and conferences require student-athletes to report their NIL deals; some schools also require student-athletes to obtain school approval for NIL deals. Schools may also restrict student-athletes from entering NIL deals with certain products or services, such as alcohol, tobacco, or gambling.
Choosing the Right Agent for NIL Negotiations
Student-athletes and their families may consider various factors when choosing an agent to represent them during NIL contract negotiations. Colleges will be employing various professionals in the near future, including general managers and attorneys to negotiate with student-athletes. Student-athletes should look for agents with extensive experience and training in reviewing and negotiating contracts and other agreements. Many agents are not qualified to review or draft contracts unless they have legal education and training.
Choosing an agent for NIL negotiations also requires student-athletes and their families to understand state laws and school/athletic conference rules to ensure they comply with disclosure rules and that their agent also complies with applicable laws and regulations. In this heavily regulated environment, if an agent is not legally trained or does not consult an attorney, it can put student-athletes at risk of violating applicable laws and rules, which can jeopardize their NCAA eligibility, school admissions, or even future professional sports contracts. Thus, working with an agent who is also an attorney is critical to student-athletes with high NIL value and aspirations of being professional athletes.
Potential Pitfalls and Legal Considerations
College athletes and their families should recognize the potential issues and legal considerations that come with having agents who are not legally trained represent them in NIL contract negotiations:
- Conflicts of interest: Student-athletes and their families should look out for signs that their NIL agent may have a conflict of interest, such as a financial interest in the party with whom they negotiate an NIL contract on behalf of a student-athlete.
- The effect of professional representation on future eligibility: Student-athletes should also understand how having representation from an unregistered agent may affect their eligibility for other athletic endeavors, such as continued NCAA participation or entering international competitions. Furthermore, not following applicable state NIL laws can jeopardize a student-athlete’s NCAA eligibility.
- Compliance with state laws: The NCAA’s NIL policy requires student-athletes to follow the NIL laws of the state where they attend college or university. Various states may have laws or regulations regarding NIL representation, such as disclosure requirements.
Contact a Sports Attorney Today
When you or your son or daughter achieves notable success in athletics, they deserve to benefit financially from their name, image, and likeness and revenue sharing with the institution they attend. An experienced attorney and NIL sports agent can fully advocate for student-athletes’ rights and interests in contract negotiations and their legal interests in general. Contact The Hughes Companies today for a free initial consultation to learn how our firm can help student-athletes with all their contract needs.