NIL Services
College athletes can get paid for the use of their name, image, or likeness (NIL), and it is now legal to be compensated accordingly. Several states passed laws providing that their athletes could receive NIL compensation. The NCAA stated that it would not penalize college athletes who receive NIL payments. These developments have led to a new kind of business — one based on the income that can be earned from an athlete’s name, image, or likeness. This includes, for example, income earned through endorsement deals, appearance fees, speaking engagements, memorabilia sales, autograph signings, and other financial opportunities. It also resulted in a new kind of entrepreneur — the college athlete entrepreneur. The issue becomes, can an athlete in college take advantage of newfound wealth and protect it, preserve it, and learn the skills associated with understanding the legal, taxation, and business knowledge to make their opportunities last beyond their days in college.
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College athlete entrepreneurs, like many other entrepreneurs, are deciding to form statutory entities like limited liability companies and corporations. The main reason to form an entity to own a business is to limit personal liability for the business’ debts. If, for example, there is a breach of a business contract and an LLC was the contracting party, the LLC offers a shield of protection that separates the individual owners of that LLC from the claims against the business.
Owning an LLC or corporation is a huge responsibility. And it is one that requires the college athlete entrepreneur to make several very important decisions before filing those articles. And once it’s been formed, the LLC or corporation has to comply with the requirements of the LLC or corporation statute under which it was formed.
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We help athletes navigate the turbulent waters of the NCAA, state, and university rules and regulations, and protect our client’s rights and livelihood. AEA can assist with transfer portal opportunities and assist with helping athletes find their own landing spots. We represent the athlete during business and partnership negotiations, contracts, and endorsement deals to utilize their name, image, and likeness. Education: understanding business, the use of business entities in NIL, the application of taxes in their business, classifying themselves under the law to pay themselves and have tax savings, and strategic planning the use of NIL funds.
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NIL representation will support brand partnerships and endorsements from start to finish to ensure that each party involved (the athlete and the brand) is fulfilling the contract’s duties. Negotiating with NIL Collective’s of college institutions is something we have a lot of experience with, as well as negotiating the terms of the NIL contracts that will protect the athlete’s best interests.
