EPISODE 8: SOLID ADVICE FOR ATHLETES!

It is a foregone conclusion that the dynamic of rostering athletic teams in college at the Division 1 level will dramatically change in 2025. The likely impact will hit hardest with football and basketball (M/W) and in the “Power 4” Conferences(ACC, BIG10, SEC, BIG12). The concept of a “scholarship” will be re-defined, roster limits may change, walk-on opportunities may end, and relative player value may vary from conference-to-conference, sport-to-sport, and position-to-position.

Regardless of the fine details to be ironed out as court settlements are approved, NCAA &institutional policies change, and with proposed legislation, one bit of advice is sound:

ATHLETES: HIRE COMPETENT/TUSTWORTHY COUNSEL BEFORE NEGOTIATING CONTRACTS WITH AN INSTITUTION OR COLLECTIVE!

Why you ask, consider this a non-exhaustive list of potential pitfalls, and concerns you should have:

1. Compensation  – Show me the $$! Compensation will need to be broad enough to cover all  costs of school, NIL rights, and revenue share. Might there be a signing  bonus?
2. Term/Termination  – Will the contract be an annual renewable, multi–year commitment with escalators (or even de-escalators), what events can give rise to a  termination, and what then!
3. Relinquishment of NIL Rights – Since the institution will pay for NIL, will there be restrictions on your ability to negotiate  “true” private NIL deals with brands and/or restrictions on same?
4. Performance Requirements – PAY TO PLAY; PLAY TO GET PAY!
5. Buy-Outs   – If you want to transfer can you or your new institution buy out the contract?
6. Transfer  Restrictions – What limits are there on your ability to enter the portal or is that option waived!
7. Guarantees  – is anything guaranteed?

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Bonus Advice. ATHLETES: HIRE COMPETENT/TRUSTWORTHY COUNSEL BEFORE YOU ENGAGE IN ANY SIGNIFICANT NEGOTIATIONS/CONTRACTS WITH BRANDS!

Why you ask? Because here is a non-exhaustive list of potential pitfalls and concerns:

1. Risk to Eligibility (Something in the contract     violates NCAA /other compliance).
2. Obligations/Commitments to the Brand Post College – they own you!
3. Signing away and Perpetual Release of Your Intellectual Property (“NIL”) – they keep using your new-found celebrity without compensation!
4. Complicated Conditions Set on Brand Payments/Fairness of any Deal.

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ABOUT THE AUTHORS:

 NILegally Speaking™ is written by PowerNIL/Ken Feinberg, attorney, in collaboration with other expert attorneys focused on employment, labor, contract, and intellectual property law.

 ken@powernil.com                                                                                                                                          www.powernil.com

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