Emergence of Student-Athlete Entrepreneurs Creates New Market for Attorneys
Since the start of NIL in college athletics, a new phenomenon has emerged: the student-athlete entrepreneur. What has followed is an increase in demand for attorneys to provide guidance to student-athletes who are executing endorsement deals and trying to navigate the multifaceted legal issues and risks of NIL.
Athletes who have built strong followings on social media often receive hundreds of DMs with brand partnership offers and new business opportunities. Student-athletes are no longer just "students" and "athletes"; they are businesses themselves.
Developing any winning business model requires the support of trusted professionals.
In the fragmented NIL market, brands are positioned to easily exploit student-athletes by proposing deals that underestimate their value. Student-athletes, often representing themselves, may accept an offer without knowing that they lost out on a significant amount of money.
NIL lawyers ensure that student-athletes get the best deal possible, follow through with contractual obligations, and comply with varying state laws, NCAA guidelines, and university policies. Executing endorsement deals also comes with complicated tax issues, especially when student-athletes frequently move from state-to-state while engaging in NIL activity.
Ricardo Jackman, seasoned Sports & Entertainment Attorney and Partner at Morris, Manning & Martin, LLP, has represented numerous student-athletes in NIL deals.
Jackman believes that there is a misconception among student-athletes that hiring an attorney for NIL is too expensive:
“The misconception is that hiring an attorney means paying exorbitant hourly rates in order to receive expert advice. The reality is, many attorneys are willing to work with the student-athlete related to fees. Many, myself included, are willing to use contingency fees. Contingency fees allow the client to pay an agreed upon percentage to the attorney for his/her services instead of paying an hourly rate. I use a sliding scale for my services contingent upon the dollar amount of the deal, for instances in which I procure the deal for the student-athlete. When the student-athlete procures a deal and I am merely reviewing and negotiating it, I get a smaller percentage than if I procured the deal for the student-athlete.
The idea is to do great work for the client and to be compensated fairly. Contingency fees as well as possibly charging a flat rate fee (a set price for matters of that particular nature) are ways to do just that for the student-athlete.”
The role of an attorney also goes beyond executing NIL deals:
“Once you hire an attorney, the student-athlete now has the support of an entire law firm,” Jackman said. “It’s about helping the student-athletes become professionals, whether that means being an athlete or a professional in the workforce after their playing career.”
As student-athletes and brands continue to realize the potential of NIL, many attorneys will enter the space serving as trusted mentors for athletes throughout their collegiate and professional careers.
