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Agency Law in Sports

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Endorsement Deals

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Sports agents secure commercial deals for athletes to promote products or brands, which can be a significant source of income.

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Collective Bargaining Agreement (CBA)

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The contract between a athletes’ union and the league or team owners that establishes workplace rules, salaries, working conditions, and revenue sharing.

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Marketing Rights

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An athlete’s ability to control and sell the rights to their name, image, and likeness, often managed by sports agents.

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Career Management

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Sports agents assist athletes in making decisions that can affect their long-term career and post-athletic life, including investments and brand building.

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Due Diligence

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The process agents undertake to ensure they have all the necessary information about an opportunity or contract before advising their athlete clients to commit.

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Athlete Representation Agreement

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A contract between an athlete and an agent detailing the terms of the agent’s services and compensation.

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Morals Clause

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A provision in contracts that allows a company to terminate an agreement if the athlete engages in behavior deemed detrimental to the company’s image.

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Free Agency

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The period when an athlete has fully satisfied their contractual obligations to a team and is free to negotiate a new contract with any team.

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Commission

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The fee an agent earns, usually a percentage, from the contracts and endorsement deals they secure for their athlete clients.

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Entertainment Law Application

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For sports agents with clients involved in film, television, or endorsement appearances, knowledge of entertainment law is vital to negotiate and structure contracts effectively.

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Contract Negotiation

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Sports agents represent the athlete in discussions of terms and conditions of sports contracts with teams or endorsement companies.

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Conflict of Interest

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Occurs when a sports agent has competing interests or loyalties that potentially harm their ability to represent an athlete's best interests.

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Agent Certification

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A requirement by sports leagues that agents must meet certain qualifications and adhere to specific regulations in order to represent their athletes.

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Sponsorship Agreements

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Contracts obtained by sports agents where a business provides support to an athlete in exchange for advertising and promotion of their products or brand.

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Power of Attorney

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A legal authorization that allows sports agents to act on behalf of an athlete for legal or financial matters.

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Post-Career Planning

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Assistance provided by agents to help athletes prepare financially and personally for life after their professional sports careers.

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Exclusive Representation

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An arrangement in which the sports agent has the sole authority to represent the athlete in all negotiations relevant to their sport.

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Fiduciary Duty

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This is the obligation sports agents have to act in the best interest of their athlete clients, putting the athletes' interests above their own.

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Athletic Unions or Associations

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Organizations that represent the collective interests of athletes, often working with agents to enforce collective bargaining agreements and athlete rights.

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Arbitration

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A method of dispute resolution used in sports where an impartial third party makes a decision to resolve contractual issues between an athlete and the agent or team.

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