1. Start with the Authority the Athlete Is Giving the Agent
In athlete contract negotiation, first define what the representative may do. An agent agreement can cover team talks, endorsement work, or both. The authority should match the athlete's intended relationship. These points can matter even before team or brand talks begin.
Agent Agreements Have Mandatory State-Law Terms
Business and Professions Code § 18897 requires a written agent contract describing services and fees. Section 18897.1 also requires a specified first-page notice about the agent's public-disclosure filing.
- Define the negotiations and services covered by the agreement.
- State how fees are calculated and when they are due.
- Check exclusivity, approval rights, and authority to bind the athlete.
- Compare the deal with a broader sports contracts review.
Disclosure Compliance Starts before the Agent Does Business
Business and Professions Code § 18896 requires public-disclosure filing before athlete-agent business begins. Section 18896.2 generally requires revised information within seven days after filed information changes.
- Confirm that the disclosure statement is current.
- Compare the contract fee with the filed fee schedule.
- Check whether later changes were reported before relying on them.
2. Read Fees, Payments, and Exit Rights As One Package
A headline commission does not show the full deal. Fees may reach bonuses, renewals, endorsements, or post-termination payments. Read the fee clause with the term and exit provisions. The deal should also say when fees start, when they end, and what happens if the agent leaves a firm.
Define Which Revenue Produces a Commission
The agreement should identify commissionable income and separate playing pay from endorsements or other work. If an agent receives salary or another payment for the athlete, § 18897.2 requires immediate deposit into a trust account.
- Define salary, bonuses, options, renewals, and endorsement revenue.
- State which expenses need advance approval.
- Identify who receives payments and provides account records.
Termination Should Address Pending and Later Deals
An exit clause should state when authority ends and whether a fee survives for completed work. It should also address negotiations already underway and who may continue them.
| Term | Question to Resolve |
|---|---|
| Notice | How and when can either side end the relationship? |
| Pending deal | Who may finish negotiations already underway? |
| Post-term fee | Which later payments, if any, remain commissionable? |
3. Endorsement Deals Need Publicity and Advertising Review
An endorsement agreement may control the athlete's identity after a campaign ends. Read the license, exclusivity, content duties, approval rights, and post-term use together. It should also say who may approve a sponsor use, who may sign, and what needs the athlete's prior consent.
Identity Rights Depend on the Consent Actually Granted
Civil Code § 3344 addresses knowing commercial use of a person's name, voice, signature, photograph, or likeness without prior consent, subject to exceptions. The contract should define the consent granted.
- Specify media, territory, term, and permitted uses.
- Address edits, sublicensing, and archived campaign material.
- Set approval rights for new ads where appropriate.
- Review related rights of publicity issues separately.
Federal Advertising Rules Add a Separate Layer
The FTC Endorsement Guides explain federal truth-in-advertising principles for endorsements. An unexpected material connection generally should be disclosed clearly and conspicuously.
- Identify who handles required advertising disclosures.
- Define sponsor approval and content-delivery steps.
- Use narrow product categories for exclusivity and list agreed carveouts.
4. Student-Athlete and Cba Rules Can Change the Contract Analysis
Student-athlete representation can add school and association rules before signing. Pro players may also have a CBA controlling grievance or arbitration procedures.
Student-Athlete Contact Rules Begin before the Contract
Business and Professions Code § 18897.63 restricts contact with student athletes and listed family or household members, subject to exceptions and notice rules. Section 18897.6 separately limits benefits unless its school-policy and NCAA conditions are met.
- Document who initiated the first contact and when.
- Check whether written materials or notices had to go to the school.
- Separate NIL work from professional employment negotiations.
- Use the broader sports framework when governing-body rules also matter.
Arbitration and Federal Labor Law Can Affect the Forum
For unionized professional athletes, a CBA may require grievance or arbitration. Federal labor law can preempt a state-law claim when deciding it requires CBA interpretation, but a CBA's existence alone does not.
- Identify any required internal grievance step.
- Read the individual agreement with the governing CBA.
- Check filing windows, arbitrator rules, and fee terms.
- Review the arbitration clause before a dispute begins.
5. Frequently Asked Questions
Does an attorney negotiating for an athlete automatically become an athlete agent?
No. Business and Professions Code § 18895.2 excludes a licensed attorney providing services customary to that profession. The exclusion narrows when the attorney also recruits or solicits an athlete for covered contracts or, for compensation, negotiates employment described by the statute.
What happens if an athlete agent does not comply with the athlete-agent statute?
Section 18897.9 makes an agent contract negotiated by a noncompliant athlete agent void and unenforceable. It also addresses compensation under certain endorsement, financial services, and professional sports services contracts.
Can an athlete agent receive salary or endorsement payments for the athlete?
Yes, but § 18897.2 requires an agent who receives the athlete's salary or another payment on the athlete's behalf to deposit it immediately into a trust fund account at a state or federally chartered financial institution.
Can a sponsor keep using an athlete's image after the agreement ends?
That depends on the license. The agreement should address term, post-term use, existing inventory, archived posts, sublicenses, and any wind-down period.
6. Review the Representation Agreement before Signing
SJKP's attorneys can review athlete representation, playing, endorsement, and related agreements before signature or renegotiation. The review can address agent authority, fees, termination, publicity rights, league or school rules, and the dispute process tied to the deal.
21 Sep, 2026
