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Agency Law in Sports
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Flashcards
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Endorsement Deals
Sports agents secure commercial deals for athletes to promote products or brands, which can be a significant source of income.
Collective Bargaining Agreement (CBA)
The contract between a athletes’ union and the league or team owners that establishes workplace rules, salaries, working conditions, and revenue sharing.
Marketing Rights
An athlete’s ability to control and sell the rights to their name, image, and likeness, often managed by sports agents.
Career Management
Sports agents assist athletes in making decisions that can affect their long-term career and post-athletic life, including investments and brand building.
Due Diligence
The process agents undertake to ensure they have all the necessary information about an opportunity or contract before advising their athlete clients to commit.
Athlete Representation Agreement
A contract between an athlete and an agent detailing the terms of the agent’s services and compensation.
Morals Clause
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.
Free Agency
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.
Commission
The fee an agent earns, usually a percentage, from the contracts and endorsement deals they secure for their athlete clients.
Entertainment Law Application
For sports agents with clients involved in film, television, or endorsement appearances, knowledge of entertainment law is vital to negotiate and structure contracts effectively.
Contract Negotiation
Sports agents represent the athlete in discussions of terms and conditions of sports contracts with teams or endorsement companies.
Conflict of Interest
Occurs when a sports agent has competing interests or loyalties that potentially harm their ability to represent an athlete's best interests.
Agent Certification
A requirement by sports leagues that agents must meet certain qualifications and adhere to specific regulations in order to represent their athletes.
Sponsorship Agreements
Contracts obtained by sports agents where a business provides support to an athlete in exchange for advertising and promotion of their products or brand.
Power of Attorney
A legal authorization that allows sports agents to act on behalf of an athlete for legal or financial matters.
Post-Career Planning
Assistance provided by agents to help athletes prepare financially and personally for life after their professional sports careers.
Exclusive Representation
An arrangement in which the sports agent has the sole authority to represent the athlete in all negotiations relevant to their sport.
Fiduciary Duty
This is the obligation sports agents have to act in the best interest of their athlete clients, putting the athletes' interests above their own.
Athletic Unions or Associations
Organizations that represent the collective interests of athletes, often working with agents to enforce collective bargaining agreements and athlete rights.
Arbitration
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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