Empowering NIL Student-Athletes: The Indispensable Role of Attorneys in Navigating Contracts, Finance, and Legal Matters
Introduction
At the intersection of collegiate athletics and the legal world, the demand for attorneys among Name, Image, and Likeness (NIL) athletes serves as a microcosm of a broader societal dilemma—inequitable access to legal representation. This issue disproportionately affects marginalized and economically disadvantaged individuals who frequently find themselves without the means to obtain legal assistance. While NIL reforms have granted student-athletes opportunities to harness their image for financial gain, they have also thrust them into a complex legal landscape. This juxtaposition perpetuates a cycle of disadvantage, rendering underprivileged athletes susceptible to exploitation and robbing them of opportunities that their more privileged peers can easily access through legal counsel. In light of these disparities, the imperative to address this inequity becomes clear, not only for a fair and just implementation of NIL rights but also for the broader goal of fostering fairness and inclusivity in society. To bridge this divide, systemic reforms are imperative, ensuring that legal support is accessible to all, thereby leveling the playing field within both the realm of college sports and the broader legal landscape.
An Overview of NIL Deals
College sports are evolving due to the question of paying college athletes. In June 2021, the NCAA introduced a policy on NIL, permitting student-athletes to earn from their personal brand. However, navigating NIL can be complex. NIL laws differ by state, so compliance with your state's rules is essential. High school students' participation in NIL activities depends on their state's high school sports association regulations. Moreover, colleges and universities have their unique NIL guidelines. The NCAA provides a guide that simplifies NIL rules for high school athletes and recruiting parents. Comprehending what's permissible ensures college sports eligibility and maximizes future NIL opportunities.
What does NIL mean? NIL encompasses the "right of publicity," a legal concept governing the use of an individual to promote a product or service. For instance, if a brand uses an athlete's image without consent, it may breach its right to publicity. This right shields individuals from the unauthorized commercial use of their name, image, and likeness. However, the NCAA has faced criticism for profiting from student-athletes NIL while denying them the opportunity to benefit. With the NCAA changing the existing NIL rules to begin allowing athletes the right to profit from the use of their name, image, and likeness, here are a few examples of what student-athletes could now be paid for: autographs and memorabilia, camps and clinics, personal appearances, merchandise, affiliate/ambassador roles, NFTs, music, art, public speaking, and many other mediums.
Nonetheless, with the introduction of NIL contracts to the amateur sports space, the NCAA has a set of rules and limitations. The NCAA's June 2021 interim policy has three key points: 1) Athletes can do NIL activities following their state's laws where their school is; 2) Athletes in states without NIL laws can participate without NCAA rule violations; and 3) Athletes can get professional service providers for their NIL activities. Regardless of the magnitude or terms of the NIL contracts, student-athletes must report NIL activities as per state, school, or conference rules.
The Money Behind the Deal & State Actions
The national acceptance of NIL rights for high school student-athletes is gaining momentum, with 19 states now permitting the profit from their name, image, and likeness. This trend was set in motion by Oregon and Oklahoma, and most recently, North Carolina has enacted NIL policies effective from July 1.
These states are divided into three categories:
Permitted (29): Alaska, California, Colorado, Connecticut, Idaho, Illinois, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Utah, Virginia, Washington, Washington, D.C.
Prohibited (15): Alabama, Arizona, Delaware, Florida, Georgia, Hawaii, Kentucky, Mississippi, Missouri, New Mexico, South Carolina, Vermont, West Virginia, Wisconsin, Wyoming.
Under consideration (7): Arkansas, Indiana, Michigan, Montana, Ohio, South Dakota, and Texas.
This wave of recognition for high school student-athlete NIL rights signifies a significant transformation in the landscape of high school sports and the broader domain of interstate commerce. It poses challenges to established concepts of amateurism, creating opportunities, financial incentives, and the potential for legal and regulatory reforms within the high school sports domain. The dynamic evolution of NIL regulations underscores the ever-changing nature of student-athlete rights and their far-reaching implications for the sports industry. Also, the amount of money that these athletes are making from NIL deals covers a range of sports and states for both female and male athletes. A prime example of how NIL deals have functioned to benefit young student-athletes is Livvy Dunne of LSU Gymnastics.
Olivia “Livvy” Dunne was born in Westwood, New Jersey on October 1, 2002. Beginning her career at the early age of 3, she quickly excelled and achieved success at various levels. She continued to hit major milestones as she qualified as a Jr. International Elite in gymnastics and represented the United States at the Jesolo Trophy. Olivia also secured an athletic scholarship to LSU, adding more accomplishments to her gymnastics journey, including wins at prestigious events like the US Classic and USA National Championships. She continued to excel, earning medals and top placements, all while maintaining a scholarship commitment to LSU.
Dunne has curated a popular social media following on platforms such as TikTok and Instagram which have resulted in her landing such a big NIL revenue. Dunne is highly active in maintaining her online presence. At just 20 years old, she boasts an impressive 3.9 million followers on her personal Instagram, with posts garnering between 400,000 and 1 million likes and several thousand comments on average. What's remarkable is that Dunne initially gained fame on TikTok, with 7.3 million followers and 370.2 million likes on the platform. Her two most-watched videos, with 40.1 million and 39.2 million views, are pinned at the top of her profile. In the world of gymnastics, Dunne has a standout social media presence. With 6.6 million Instagram followers, she's well on her way to surpassing Simone Biles, who has 6.6 million followers and has already surpassed Suni Lee's 1.7 million followers on the same platform. The public icon signed a significant contract with sports broadcasting powerhouse ESPN and secured a groundbreaking deal with Leaf Trading Cards. Her impressive list of other agreements features prominent companies such as Body Armor, Grubhub, Linktree, Forever 21, Vuori, American Eagle Outfitters, and the rapidly expanding study app Bartleby.
Dunne's NIL deals total $3.5 million, ranking her third on the NIL 100 list by On3. She's closely trailing Bronny James ($7.2 million), son of basketball legend, Lebron James. In a mere 10 weeks, Dunne’s NIL earnings surged by $242,000, marking her as the highest-earning collegiate gymnast ever.
II. Vultures and Victims: A Legal Analysis of the Exploited NIL Athlete
Unfortunately, not all NIL deals go as well as Livvy Dunne’s. NIL deals offer student-athletes a chance to capitalize on their athletic prowess, but not all agreements go well. Some athletes fall victim to exploitation and fraud. An illustrative example is Gervon Dexter's case, where the pursuit of quick financial gains based on his sports talent resulted in a legal dispute, emphasizing the challenges that young student-athletes may face in the new world of NIL compensation.
The Story of Gervon Dexter
In 2022, Gervon Dexter, a former standout defensive lineman for the University of Florida and a current rookie with the Chicago Bears found himself embroiled in a legal dispute regarding his NIL agreement with Big League Advance Fund II (BLA). While the initial NIL contract promised Dexter $436,485 during his time as an NCAA athlete, it also included a notable clause requiring him to contribute 15% of his pre-tax earnings from professional football for a staggering 25-year period. Dexter's swift acceptance of this agreement, less than 24 hours after receiving it from BLA, became the catalyst for a lawsuit filed in a U.S. District Court in Gainesville, Florida.
Legal Analysis: Case Law in Action
Dexter's legal challenge primarily revolves around two pivotal issues: 1) the NIL contract's terms violate Florida's NIL and Athlete Agent laws because the agency is not licensed to operate in the state of Florida; 2) BLA failed to fulfill the contract's requirement of notifying Scott Stricklin, the Athletic Director of the University of Florida, within 72 hours of the deal's execution. For these reasons, Dexter’s attorneys believe the contract is invalid, denying its ability to enforce.
Dexter’s case is likely to go his way because, for both issues, the action of BLA violated their fiduciary duty to current clients. Under Florida Law, BLA must provide sports agent service while complying with Florida state law. BLA, however, violated their legal requirement in both instances. Thus, failure to comply would likely follow the same reason behind Detroit Lions, Inc. v. Argovitz. In Detroit Lions, Inc. v. Argovitz, the Court tackled the question of whether a player can void a contract if their agent breaches their fiduciary duty by putting themselves in a conflicting position. The Court ruled affirmatively, stating that Argovitz, the agent representing Sims, had the responsibility to communicate the Lions' final offer and present both offers (from the Lions and the Gamblers) to Sims. Only then could Sims make an informed choice. When Sims decided to join the Gamblers and Argovitz breached his fiduciary duty, Sims became eligible to rescind his contracts with the Gamblers. Detroit Lions, Inc. v. Argovitz set the legal precedent that when an agent breaches their fiduciary duty by conflicting with the player's interests, the player can void the contract. Ultimately, based on the case law established in Detroit Lions, Inc. v. Argovitz, Dexter will likely be relieved of any terms and conditions set in his contract with BLA.
Furthermore, the contract's inducement is likely to be found in violation of existing case law. Dexter entered the contract with BLA under the pretense that BLA was a fully legitimate sports agency with the legal capacity to recruit, draft, and authorize NIL deals for student-athletes. Their fraudulent misrepresentation, however, rendered Dexter's contract inducement. As with Detroit Lions, Inc. v. Argovitz, Dexter’s defense would likely follow the Court's action in Agent Breach of Fiduciary Duties Williams v. CWI. In the case of Agent Breach of Fiduciary Duties Williams v. CWI, the Court clarified whether a plaintiff could receive damages if they were fraudulently induced into a contract with the defendant. The Court affirmed that such damages can indeed be awarded, asserting that if a plaintiff was fraudulently induced into a contract, they are entitled to a judgment against the defendant for both contract and fraud violations. This judgment may include litigation fees, compensatory damages, and any financial losses caused by the defendant's actions. Agent Breach of Fiduciary Duties Williams v. CWI established the legal precedent that a plaintiff can be awarded damages if fraudulently induced into a contract with the defendant.
Conversely, had BLA been properly registered and compliant with Florida law, Dexter's lawsuit would likely not have succeeded. In cases where an agent or entity fulfills their obligations per state law, the client is generally bound to uphold the terms of the original contract, even if they are dissatisfied with the services provided. This principle finds precedence in the case of Zinn v. Parrish, highlighting the significance of legal compliance in contractual relationships.
In Zinn v. Parrish, the Court ruled that an agent does not breach a contract with a professional athlete if they make reasonable efforts to secure employment contracts. The Court deemed Zinn and Parrish's contract voidable under federal securities law because it involved providing investment advice, and Zinn wasn't a registered advisor. This established the legal precedent that if an agent makes reasonable efforts to secure employment contracts, they fulfill their obligations. Additionally, the evidence revealed that Zinn, the agent, performed substantial negotiation services on behalf of Parrish, the athlete. Zinn made good-faith efforts to secure endorsement contracts and off-season employment for Parrish. The district court determined that Zinn consistently acted in good faith and aided within his capabilities. Under Illinois law, these efforts constituted the full performance of Zinn's contractual obligations. It was Parrish who breached the contract by terminating Zinn and withholding the 10 percent commission. Therefore, Zinn v. Parrish established the principle that an agent doesn't fail to perform under a contract with a professional athlete if they use reasonable efforts to secure employment contracts. Thus, in this hypothetical scenario where BLA is legally capable of representing to sign an NIL in the state of Florida, Dexter would not be able to file a successful lawsuit nor would he be able to withdraw contractually obligate performance because of dissatisfaction with the contract.
Attorneys in Action
In the absence of legal counsel, Dexter could have been forced to accept the harsh terms of his contract with BLA. However, with the assistance of attorneys, a thorough legal analysis of the contract revealed the “predatory” obligations it would have imposed. The contract outlines that Dexter granted BLA a wide-ranging license to utilize his name, image, likeness, and athletic reputation for promotional purposes during the Initial Term. Furthermore, the contract mandated social media posts, autograph sessions, personal appearances, and VIP invitations to NFL-related events. The financial burden imposed by the agreement was substantial, requiring Dexter to contribute 15% of his future professional football earnings over 25 years. This translated into a substantial financial commitment if he earned a significant sum during his professional football career. Any disputes arising from the agreement were subject to binding arbitration, underscoring the legal complexities involved.
This is why attorneys are a necessity to NIL athletes. As the landscape of NIL deals remains relatively unregulated and nuanced, a concerning vulnerability has emerged, leaving NIL athletes susceptible to fraud, scams, and exploitative contracts. With state policies yet to catch up to the intricacies of these agreements, the burden falls upon attorneys to identify and combat predatory organizations that seek to take advantage of athletes lacking the legal expertise to challenge and prevent harm. In the absence of comprehensive legislation, legal professionals must safeguard the interests of young NIL athletes, ensuring they are not constantly targeted, scammed, or exploited in this evolving and uncertain terrain.
The Role of the NIL Attorney: Representation and Guidance
Beyond the courtroom, attorneys possess a wide range of skills, including advocacy, persuasive writing, and an in-depth understanding of legal and administrative processes. They also maintain a valuable network of experts. In the realm of NIL contract representation, attorneys can leverage these skills to advance their client's interests. Specifically, attorneys can take four key actions to benefit their clients.
Attorneys play a pivotal role in assisting student-athletes in navigating the complex landscape of NIL contracts, with a focus on identifying opportunities that align with the athlete's brand and image. While not serving as talent agents, attorneys provide essential guidance on legal entitlements concerning financial compensation, strategically positioning the athlete for both immediate and long-term success.
Attorneys showcase their ability to identify NIL opportunities through various means. One example is their capacity to advocate for royalties. Attorneys representing NIL athletes guide these individuals in considering the lasting financial benefits associated with specific contract clauses. They bring valuable insights and expertise to contract negotiations, aiming to protect immediate interests while setting the stage for long-term prosperity. Specifically, in terms of royalties, attorneys ensure their client's interests are safeguarded, securing favorable terms that extend beyond immediate compensation. These contracts result in ongoing revenue from royalties, derived from the continued use of the athlete's NIL on items such as jerseys, trading cards, and video games. This dual focus on short-term and long-term financial success is a hallmark of effective attorney representation for NIL athletes.
Another significant role attorneys assume is leveraging their client's image for endorsements and sponsorships that align with the individual's brand. This opens avenues for financial security, global recognition, and the creation of a lasting legacy. Attorneys employ their expertise to negotiate contracts that provide both immediate financial benefits and long-term stability, ensuring the athlete's financial well-being extends beyond their athletic career. These partnerships are strategically crafted to align the athlete's personal brand, values, and target audience with relevant brands and companies, propelling the athlete into the global spotlight and transcending geographical boundaries.
Endorsements and sponsorships offer a spectrum of media exposure, including personal appearances, commercials, and social media campaigns. Attorneys oversee the development of comprehensive and well-structured contracts that protect the athlete's rights while maximizing their financial gains. These partnerships not only solidify the athlete's iconic status but also establish a tangible legacy, enduring in the memory of sports enthusiasts and generating income for years to come.
In essence, attorneys are indispensable in NIL contractual agreements, given their legal expertise to scrutinize contract terms, identify potential risks, and draft documents that safeguard their clients' interests. They provide guidance to navigate intricate legal language, negotiate equitable terms, and ensure contract enforcement when necessary, delivering vital protection and assurance in both business and legal matters.
Guiding The Transition: Million Dollar Middle-Schooler
Professional athletes have a lengthy history of filing for bankruptcy, primarily due to poor financial choices and overall financial mismanagement. Attorneys play a crucial role in preventing this common occurrence through their counsel and guidance, helping athletes make informed decisions. These financial mistakes can be extremely costly and detrimental to an athlete's long-term financial well-being. This issue may be even more prevalent among NIL athletes who are minors and lack the knowledge and experience needed to manage the thousands to millions of dollars in profit they earn, underscoring the necessity of legal expertise in safeguarding their financial futures. As minors and young adults enter into high-value NIL contracts, they are granted access to influential executives and corporations, with the potential to amass significant wealth and attain local or national celebrity status almost overnight. Yet, the increased visibility and media attention that accompanies this newfound fame can also bring unforeseen challenges. In this context, attorneys play a pivotal role by assuming the dual responsibilities of financial and business advisors, working to protect their clients' assets, financial stability, and the enduring impact of their legacy.
The lack of available data on profit margins, revenue, custom contract structures, and negotiation strategies in the context of NIL deals for minor student-athletes complicates the landscape. To navigate these intricacies, NIL contracts for minors may often align with the legal and financial practices observed in professional athlete NIL contracts. This underscores the critical role of attorneys, who offer expertise not only in the legal realm but also in financial guidance. Attorneys play a pivotal role in the financial planning of student-athletes entering into NIL deals, providing crucial support and guidance in several key areas:
First, attorneys help student-athletes understand the financial implications of their NIL contracts. They provide clarity on how the contract terms, compensation structures, and revenue-sharing arrangements work. By breaking down complex financial aspects, attorneys empower student-athletes to make informed decisions.
Second, attorneys aid in the development of sound financial plans. They assist student-athletes in creating budgets, managing income, and planning for taxes. Attorneys help these young athletes establish a solid financial foundation, ensuring that they are equipped to handle their newfound wealth responsibly.
Furthermore, attorneys can identify and mitigate potential financial risks. They guide student-athletes in recognizing potential pitfalls and assist in crafting contractual safeguards. These precautions help protect the athlete's financial interests over the long term. Additionally, attorneys can help student-athletes explore investment opportunities and strategies to grow their wealth. They offer advice on how to diversify their financial portfolio and make sound financial decisions, fostering financial stability and growth.
Ultimately, attorneys can help a million-dollar middle-schooler make advantageous financial and business decisions to ensure that they are set for years to come. Lawyers are essential partners in the financial planning of student-athletes who enter NIL contracts. Their legal and financial expertise empowers these young athletes to navigate the complexities of financial arrangements, establish solid financial foundations, mitigate risks, and make informed decisions. By offering valuable guidance in these areas, attorneys play a vital role in securing the financial well-being and long-term success of minor student-athletes in the NIL era.
III. Solution: Educate, Organize, Execute
Kareem Abdul-Jabbar, previously known as Lew Alcindor in college, is widely regarded as one of the greatest college basketball players. His three-year stint at the University of California, Los Angeles (UCLA) from 1966 to 1969 saw remarkable success, securing National Championships each year with an impressive 88-2 record. Averaging an astounding 26.4 points and 15.5 rebounds per game, Alcindor earned a spot on the 1960s All-Decade Team. Notable achievements include three consecutive Final Four Most Outstanding Player titles, membership in the 2,000-point, 1,000-rebound club, setting a record for most points in his debut game (56), and a place on the NCAA Tournament All-Time Team. Despite the value he brought to UCLA, however, he did not receive any financial compensation.
Considered one of the greatest women's college basketball players, Cheryl Miller's illustrious four-year stint at the University of Southern California (USC) from 1982 to 1986 yielded two NCAA championships in 1963 and 1964. She clinched the NCAA Tournament MVP title during these championship victories and maintained her stature as the Naismith Player of the Year for her final three years at USC. With a college career averaging 23.7 points and 12.1 rebounds per game, Miller's legacy is immortalized through her retired jersey, number 31, marking the first in USC's history. Her remarkable 1,534 rebounds stand as the USC record-holder and rank third in NCAA history. Similarly to Abdul-Jabbar, however, she did not receive any financial compensation.
For decades, the NCAA, universities, college sports conferences, and various amateur athletic governing bodies have reaped vast sums of money at the expense of student-athletes. With the advent of NIL deals, student-athletes must embark on a journey of education, organization, and mobilization. Their objective is not merely to be compensated for the fame garnered from their athletic triumphs, but to ensure that they are rightfully compensated for their athletic labor.
Educate: The Power of Legal Knowledge
Student-athlete minors, often with no legal training, find themselves thrust into a complex and high-stakes world when it comes to NIL contracts. This unique group of individuals transitions from a position of limited privilege to one of extreme privilege and increased financial capacity. They need to understand NIL contracts and contracts in general, as their newfound wealth and fame make them vulnerable to potential threats and exploitation.
Student-athletes entering NIL agreements are entering a realm they are often unfamiliar with. They might not have prior experience dealing with legal documents, negotiations, or financial matters. Being uninformed or unaware of the intricacies of NIL contracts can put them at a significant disadvantage, making them susceptible to exploitation by more experienced parties. Gaining a basic understanding of contracts and the legal implications of NIL agreements is crucial for their protection. The transition from a position of limited privilege to one of extreme privilege carries inherent risks. With newfound wealth and fame, student-athletes become attractive targets for various individuals and entities. They may encounter unscrupulous agents, businesses, or organizations seeking to take advantage of their inexperience. By educating themselves about NIL contracts, they can identify red flags, negotiate better terms, and protect their interests.
In addition, the financial capacity that comes with NIL contracts can be transformative for student-athletes and their families. However, this transformation carries inherent financial risks. Mismanagement of funds, unexpected tax liabilities, and exploitative agreements can lead to severe financial setbacks. Understanding the financial aspects of NIL contracts is essential for ensuring their newfound wealth is preserved and utilized wisely. NIL agreements involve more than just financial aspects. They can impact a student athlete’s future opportunities and reputation. A poorly managed NIL contract can lead to legal disputes, damage to their image, or even the loss of future endorsement deals. Knowledge of the potential legal and reputational risks is essential to making informed decisions.
Ultimately, for student-athlete minors entering NIL agreements, it is imperative to comprehend the terms and responsibilities involved. The money at stake can impact your family positively, but it also carries legal and financial risks. Every NIL deal comes with obligations. Student-athletes should acquire essential knowledge about NCAA regulations and contract basics to safeguard themselves against potential exploitation. Based on the NCAA rules, minor NIL signees must know:
State-specific NIL rules differ; what's allowed in one state may not apply in another.
High school athletes can monetize their NIL but follow your school's or sports association's rules.
Colleges and conferences have their NIL regulations, not just state laws.
Complying with rules is crucial to maintaining college sports eligibility.
Prioritize academics and skill development for future college and NIL prospects.
Seek advice from current college athletes, NIL professionals, financial experts, podcasts, and workshops.
Build an online presence for recruiting and potential NIL opportunities.
Stay updated on evolving NIL rules and trends.
A deep understanding of NIL deals is an essential asset that equips student-athletes for a successful journey through their athletic careers and beyond. This knowledge empowers NIL athletes to advocate for themselves effectively, whether in negotiations or fulfilling their contractual obligations. Its benefits extend beyond individual gains, encompassing the protection of teammates and the safeguarding of future interests in business, finance, and athletics. Informed NIL athletes can confidently assert their interests during negotiations, ensuring they secure equitable and favorable terms. This self-advocacy reduces their dependence on external authorities, allowing them to actively shape their destinies. A comprehensive grasp of their contracts enables student-athletes to fulfill their obligations without inadvertent breaches. This preserves both their interests and the overall integrity of the team and the wider sports community. Empowered with this knowledge, student-athletes become valuable sources of guidance and support for their teammates, fostering a collaborative environment that strengthens team dynamics. In the long term, this capacity to protect one's interests through a profound understanding of NIL contracts not only prepares athletes for post-athletic careers but also paves the way for sound financial decisions, responsible entrepreneurship, and the creation of a lasting athletic legacy.
Ultimately, general proficiency in NIL contract intricacies is not only a personal asset but also a substantial contribution to the broader sports community, ensuring the holistic success of student-athletes throughout their careers and into the future.
Organize: Strength in Unity
As the NIL market grows, diverse deal terms will arise. Many student-athletes require legal representation, but not all can afford it. Without NIL standardization, they face vulnerability to harm from the NCAA, schools, agents, or attorneys. An essential solution is the creation of a NIL Athlete Union, mirroring organizations like the National Football League Players Association (NFLPA). This union would provide a unified voice for student-athletes to negotiate fair compensation, secure health benefits, and protect their rights. It ensures input from athletes in designing performance criteria and conditions, fostering a mutually beneficial environment. This union promotes transparency, fairness, and player representation in amateur commercial student-athletics, benefiting athletes and partner organizations alike. The core purpose of the union would be to a players' union act as a collective voice for athletes, negotiating on their behalf to secure favorable terms and conditions, advocating for their rights, and providing essential resources and support throughout their careers and beyond.
Outside of the mechanisms of advocacy and legal representation, a union also builds community, allowing for various services to their members, such as legal representation, support for grievances, and assistance with contract negotiations. They may also offer resources for player development, education, and post-career planning. Importantly, they advocate for players' rights and interests, helping ensure fair treatment, competitive compensation, and benefits.
With or without a union, student-athletes can still organize for their collective benefit. Here are several strategies student-athletes can use to leverage collective action for financial, social, and personal gain:
Collude with Local NIL Athletes: Collusion among NIL athletes can be mutually beneficial, ensuring standardized terms and fair compensation, particularly for those at less popular universities. It provides a collective understanding to prioritize player interests in contract negotiations. By sharing knowledge and resources, all student-athletes can secure proper compensation for their labor's value. Collaboration helps level the playing field, promoting fairness and equity in a rapidly evolving NIL market.
Lobby for NIL Policies: NIL athletes advocating for athlete-benefiting policies is crucial due to the current lack of uniform NIL regulations across states and limited federal oversight. Without standardized guidelines, athletes face uncertainty and potential exploitation. By actively lobbying for their interests, athletes can shape the rules governing their financial opportunities. This proactive approach empowers athletes to secure fair compensation, protect their rights, and establish industry standards that benefit their collective interests, ultimately ensuring they receive just compensation for the value they bring to their respective sports and the broader local economies.
NIL Management Platforms: Leveraging NIL management platforms for tracking and analyzing compensation is crucial for student-athletes, particularly local superstars, to bridge the gap in NIL contract profits with global athletes. By monitoring their earnings, athletes can assess and negotiate fair compensation, limiting the threat of exploitation. Furthermore, collaboration among NIL athletes can raise their collective market value, as they collectively advocate for fair deals and standards. This synergy empowers them to ensure they receive equitable compensation for their local celebrity status, narrowing the gap between local and global athletes while amplifying their bargaining power in the evolving landscape of NIL opportunities.
All in all, the establishment of a union within the NIL athlete community will broaden the availability of legal services, extending critical representation resources to a diverse spectrum of athletes who would otherwise lack access to such support. Through this union, legal knowledge and representation will be democratized, providing a level playing field for all NIL athletes. This inclusivity is paramount for advocating, safeguarding, and advancing the rights and interests of NIL athletes, ensuring their equitable treatment and protection under the law.
Mobilize: Push the Envelope
Historically, high school and college athletes have been uncompensated for the value their labor brings to educational institutions. Although NIL deals have allowed these athletes to be paid for their influence, name, image, and likeness, they are still yet to be compensated for the millions that are making the school–and millions are no exaggeration. Nick Saban, the decorated Alabama football head coach, makes an annual salary of 7 million dollars. That is 7 million dollars to someone who does not take a single hit while the players are risking life-altering injuries for the opportunity to be compensated for their labor years down the road. Aside from the coach’s salary, as an institution, the University of Alabama has benefited from an even greater payday. Michael Casagrande, a sports journalist at AL.com, states Alabama's most recent financial success was fueled by a 6.6 percent revenue growth in 2013-14, primarily attributed to the football program. Nick Saban's team generated a surplus of $53.3 million with total revenues of $95.3 million. While expenses increased by just under a million dollars from the previous year, revenues experienced a significant jump of nearly $7 million. The notable increases in football revenue were derived from royalties (which rose from $1.3 million to $4.5 million), broadcast, television, radio, and Internet rights (increasing from $7.2 million to $9.1 million), and contributions (which grew from $18.9 million to $20.7 million).
This is only an example of one university, one coach, and one athletic program. This is an issue across the US in every private and public school and their respective sports programs, both high school and college. Student-athletes deserve compensation. At the University of Arizona, a group of student-athletes sought to claim a share of the pie, not by working, but by leveraging media opportunities.
In the case of House v. NCAA, Grant House, a swimmer at Arizona State University, sued on behalf of a class of athletes contesting the NCAA's rules that prohibited student-athletes from profiting from their names, images, and likenesses through broadcasting rights. Within the case, the court raised the question: Are Division I athletes pursuing group licensing from television rights a legitimate subgroup with valid antitrust claims of injury? The court affirmed that Division I athletes pursuing group licensing from TV rights constitute a valid subgroup with legitimate antitrust injury claims. Their reference to the nationwide market of all Division I athletes is valid for antitrust purposes. If the challenged rules were removed, the bargaining price for Division I athletes would most likely increase an amount significant enough to survive a motion to dismiss.
Outside the legal victory within the case, this reveals several truths for NIL athletes: 1)NIL athletes can leverage their power and privilege to hold the NCAA and other athletic bodies accountable through advocacy and legal action; 2)NIL athletes cannot rely on conferences, teams, the NCAA, agents, agencies, individual attorneys, and any other governing athletic body to act in the best interest of the athlete–especially after decades of exploitation; 3) NIL athletes need to unionize and attorneys need to have agency and power to hold their governing entities accountable while advocating for the athletes’ best interest.
IV. Conclusion
In conclusion, the need for attorneys in the world of NIL athletes exemplifies a profound problem of unequal access to legal representation. This disparity not only affects marginalized individuals but also exposes athletes to intricate legal challenges. Rectifying this imbalance is not only crucial for a just and equitable implementation of NIL rights but also for a fair and inclusive society. Systemic reforms are indispensable to guarantee that legal support is within reach for all, ultimately bridging the divide in both collegiate athletics and the broader legal realm. This parallels the way legal representation shields individuals from exploitation and injustice, emphasizing the pressing importance of leveling the legal playing field for all.
All in all, lawyers should serve as a crucial extension of the union, emphasizing the vital role of their legal knowledge, the expertise attorneys acquire, and its inherent significance for the success and safeguarding of NIL athletes. The relationship between athletes, agents, and governing bodies has often been fraught with exploitation. Athletes, whether in high school or college, have long shouldered the burden of their immense talents without reaping the commensurate rewards. However, the dawn of NIL deals has ushered in a new era of agency, empowerment, financial autonomy, and privilege for student-athletes, affording them the tools to rectify these historical imbalances.
NIL deals are not merely a financial boon; they are a catalyst for change, granting student-athletes the power to unite as a collective force, demanding fair compensation for their labor and the immense value they bring to universities. Through unionization, these athletes form a community, forging a shared understanding of unity and a common purpose. This union becomes the mechanism through which they advocate for their rights and welfare, transcending individual pursuits to protect the interests of all student-athletes. Moreover, it serves as a central hub for alternative resources, encompassing training, educational classes, advisors, and vital medical attention, all vital components in the holistic development of these young athletes.
In this journey to compensation, the partnership with dedicated attorneys becomes the cornerstone of progress. These legal advocates tirelessly serve and champion the cause of student-athletes, ensuring that they receive not only fair compensation for their athletic prowess but also the myriad business opportunities that come with the adulation and fame stemming from NIL deals. This collaborative effort paves the way for a future where all student-athletes can thrive, their talents and hard work justly rewarded, and their voices amplified in the pursuit of equity and fairness in the world of collegiate athletics.
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