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  • Square Peg in a Round Hole: The Challenge of College Athlete Unionization

    Square Peg in a Round Hole: The Challenge of College Athlete Unionization

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    With the 2022 NCAA Convention having concluded, sweeping legislation was considered and passed. The membership voted to approve a new constitution for the Association. The decentralizing move gives more rulemaking authority to individual NCAA divisions, schools and conferences. What we know for certain is that college athletics will look substantially different in a few years from now than it did a few years ago. 2021 brought in the “NIL era,” where student-athletes can now profit from their athletic fame. Some have argued that name, image and likeness does not go far enough for student-athletes and that they should be entitled to employment income, revenue sharing and health insurance. These provisions would typically be negotiated by employees during collective bargaining.

    A bill has been introduced in Iowa that would classify student-athletes at state schools as employees of their respective institutions. The bill is at odds with the newly-passed NCAA constitution, which affirms that student-athletes should not be compensated by institutions for competing in a sport and are not employees. A key topic in college athletics in recent years has been the ability of student-athletes to unionize and collectively bargain, like professional athletes typically do. Importantly, only employees are able to collectively bargain. As of now, student-athletes are not considered employees. In 2015, a group of Northwestern University football players attempted to form a union under the National Labor Relations Act (NLRA). While the National Labor Relations Board (NLRB) ultimately declined to grant the Northwestern football players union status, the NLRB General Counsel recently released a memo outlining her position that college athletes are statutory employees of their institutions under the NLRA. While there are several hurdles for college athletes to be able to unionize, including their status as employees, one hurdle in particular presents a unique challenge to college athletics—the coverage of the NLRA. 

    Coverage of the NLRA 

    The NLRA—and the NLRB’s authority—is limited to private employers, not governmental employers. Because the majority of Division I FBS universities are public institutions, they are not subject to the NLRA, and thus, their employees cannot organize under the Act. Only 12 of the 65 Power 5 Conference institutions are private universities, where employees would be eligible to unionize under the NLRA. Employees of governmental entities, like state colleges and universities, can only be given the right to unionize under state law. Even if college athletes one day become employees, the majority of Power 5 Conference athletes would not be able to unionize under federal labor law. Alternatively, it would be up to each individual state to pass legislation allowing for college athletes at state schools to form a union. 

    Multiemployer Collective Bargaining in Professional Sports 

    Professional athletes in the four major North American sports leagues (NFL, NBA, MLB and NHL) engage in multiemployer collective bargaining. For example, NFL players are members of the NFL Players Association and employees of each of their respective teams. As opposed to negotiating the terms and conditions of their employment with their individual employers (the teams), the NFLPA engages in multiemployer collective bargaining with a representative of all 32 teams (the league). In the sports context, this makes sense for several reasons. Importantly, the group of teams can negotiate provisions in a collective bargaining agreement that one individual team could not. Topics like the draft, free agency, trades, salary caps, playing schedules and the playoffs can all be negotiated by the league. Without multiemployer bargaining, individual teams would not be able to negotiate any of these issues on their own. Additionally, multiemployer collective bargaining allows the players to negotiate standard conditions of employment for all 32 teams. It is in the players’ interest for each team to have standards for medical staff, trainers, facilities, and travel. Multiemployer bargaining is incredibly beneficial for both the teams and the players. 

    Challenges with Collective Bargaining in College Athletics 

    If collegiate student-athletes ultimately become employees of their universities, they likely would be unable to negotiate terms and conditions of their employment through multiemployer collective bargaining. The only potential for multiemployer collective bargaining would be for student-athletes in conferences with exclusively private institutions, like the Big East (before UConn rejoined the conference).  

    Perhaps more importantly than bargaining with conferences, NCAA student-athletes would not be able to collectively bargain with the NCAA itself. Alternatively, student-athletes would only be able to negotiate with their individual athletic departments—should state lawmakers pass legislation giving them that right. Some states may pass such legislation, others might not. Additionally, states may pass legislation with differing provisions. And student-athletes at private institutions would be left to organize under the NLRA. There could be dozens of different laws giving student-athletes the right to unionize (including the NLRA), with college athletes having different rights and labor tactics available to them. It is not hard to imagine a scenario where student-athletes at private institutions go on strike (a right afforded under the NLRA) during the NCAA basketball tournament, while student-athletes at public schools are not allowed to do so. 

    For certain groups of governmental employees, like public school teachers, the lack of ability to engage in multiemployer bargaining is not an issue because of the lack of interconnection between their topics of collective bargaining. Teachers in Wisconsin and teachers in Illinois have no need to engage in multiemployer bargaining, because they are not similarly situated enough that there is a need for them to. Teachers do not get drafted or traded between schools like professional athletes do. As it currently stands, the NCAA maintains substantial legislative authority on the topics of eligibility, championships, transfers, and countable practice hours. There are dozens of other topics that student-athletes would want to bargain over if they could. But because of the coverage of the NLRA, student-athletes would not have the ability to bargain over association-wide rules. Otherwise, student-athletes would only be able to negotiate with their individual schools on topics like compensation, facilities, and travel. 

    In the sports context, multiemployer collective bargaining is critical to an effective labor system. As college athletics continues to transform, there is a greater need for an effective voice for student-athletes. However, a union representing the interests of student-athletes is not an effective option because of the context of college athletics and its connection to government operated academic institutions.

    By Joshua Frieser

    Joshua M. Frieser, Esq. is a college sports lawyer and Principal Attorney at Frieser Legal. His practice is focused on the representation of college athletes and working to solve their unique legal needs. Josh represents college athletes in formal NCAA regulatory proceedings and NIL licensing agreements, as well as in related intellectual property and business planning matters.

  • Alabama State Rep. Moves to Repeal NIL Law

    Alabama Representative Kyle South—the lawmaker behind the state’s NIL bill—has moved to repeal the law granting student-athletes the opportunity to utilize their name, image and likeness for commercial gain. South, a University of Alabama graduate, has stated that his state’s NIL law is “more restrictive than what the NCAA adopted.” Unquestionably, South does not want student-athletes in his state to lose the ability to market their NIL. Rather, he wants the universities in Alabama to operate without any restrictions from the state legislature.

    Compared to states where there are no NIL laws on the books, schools in Alabama may be at a disadvantage. Student-athletes and athletic departments in the state have to jump through the additional hurdle of a state law—as opposed to simply following NCAA and institutional guidance. Universities in states without an NIL law may ultimately be able to provide more opportunities for student-athletes than universities in states with NIL restrictions, such as those in the state of Alabama. Alabama’s NIL law, for example, restricts the athletic department from facilitating any NIL deals for its student-athletes.

    Of course, facilitation of NIL deals through the athletic department could lead to student-athletes receiving greater NIL compensation, which in turn may lead to greater recruiting success. Surely, Alabama legislators would not want to see their state’s flagship universities at a recruiting disadvantage. Especially one that could jeopardize customary College Football Playoff appearances. 

    It is likely that other states will follow Alabama’s lead in repealing NIL laws. The bills that were passed with great expediency in the time leading up to July 1st, 2021, may be gone as quickly as they came.

    By Joshua Frieser

    Joshua M. Frieser, Esq. is a college sports lawyer and Principal Attorney at Frieser Legal. His practice is focused on the representation of college athletes and working to solve their unique legal needs. Josh represents college athletes in formal NCAA regulatory proceedings and NIL licensing agreements, as well as in related intellectual property and business planning matters.

  • NCAA Rules, State Laws, Institutional Policies and… FTC Guides? One More Consideration for Student-Athletes in the NIL Era

    Since NCAA student-athletes have been able to sign name, image, and likeness (NIL) contracts, college athletes have entered into endorsement deals to promote various brands, products, and services. NIL deals have included contracts with car dealerships, restaurants, and clothing brands, to name a few. Since July 1st, 2021, student-athletes have submitted their NIL deals to on-campus compliance staff to ensure that the endorsement deals they are signing do not violate any state laws, institutional policies, or NCAA rules. But there is one more regulatory body that student-athletes have to worry about—the Federal Trade Commission. 

    In addition to state laws, institutional policies, and NCAA rules, college athletes have to follow the Federal Trade Commission’s Guides regulating endorsements and testimonials. The FTC’s authority to regulate endorsements comes from 15 U.S.C. § 45. Because student-athletes are now endorsers of commercial products, their activity is subject to FTC regulation.

    The FTC Guides require that any endorsement of a product, service or company must reflect the honest opinions, findings, beliefs, or experience of the endorser in using the product, service or company. Additionally, when an advertisement represents that the endorser uses the endorsed product, the endorser must have been a “bona fide user” of it at the time the endorsement was given. Finally, an endorser must disclose to their audience that they have a relationship with an advertiser. 

    It is important for student-athletes entering into NIL endorsement deals to consider the FTC Guides on endorsements and testimonials. Student-athletes posting paid advertisements on their social media accounts need to ensure the following: (1) they actually are using the product or service they are promoting; (2) the statements made about the product or service are true and reflect their actual opinions; and (3) there is a disclosure of any relationship between the student-athlete and advertiser, usually shown by using #ad or making a statement about the relationship.

    By Joshua Frieser

    Joshua M. Frieser, Esq. is a college sports lawyer and Principal Attorney at Frieser Legal. His practice is focused on the representation of college athletes and working to solve their unique legal needs. Josh represents college athletes in formal NCAA regulatory proceedings and NIL licensing agreements, as well as in related intellectual property and business planning matters.

  • Legal Considerations of Hosting a Camp as a College Athlete

    Since July 1st, 2021, NCAA student-athletes have been able to utilize their name, image, and likeness (NIL) and capitalize on their athletic ability by hosting camps and providing lessons. While the majority of college athlete NIL activity has included sponsored social media posting, camps and lessons are an excellent way for student-athletes to monetize their NIL and athletic skill. As college athletes transition to off-seasons, school breaks, and summer, they will have more time to host camps and give lessons, both in the locale of their university or back at home. While hosting a camp can be a very profitable endeavor, student-athletes will have several legal considerations before doing so.

    The Location of the Camp or Lessons 

    The first thing a student-athlete should consider is the location of their camp or lessons. Depending on their sport, it will be at a gym, a public court or field, or a private facility. Here are some examples of where student-athletes could host a camp: a basketball student-athlete could utilize a local high school gym; a golf student-athlete could use the driving range at a municipal golf course; and a baseball or softball student-athlete could use a private training center with batting cages and pitching mounds. The options for an appropriate venue depend largely on the sport. Contacting all of the potential facilities to get more information and a quote is a good place to start. After finding a good location to host the camp, make sure to sign a contract with the venue that includes the cost for the venue, as well as the date, time, and details of the event. Other negotiated details should also be included. 

    What Equipment is Needed 

    The equipment needed also depends largely on the sport. It is possible that the facility you are using may have appropriate equipment like basketballs or footballs. When contacting potential facilities, ask about the equipment they may also be able to provide. If a basketball student-athlete is hosting a camp at a local high school gym, the facility might also be able to include basketballs as part of the facility rental. 

    In addition to balls, bats, sticks, gloves and other equipment that may be needed, consider the need for cones, markers, goals, nets, and pinnies. You may also want to provide participants with a t-shirt with the name of the camp on it—that is another great way to build your brand. If you are renting equipment from a local provider, make sure to sign a contract with the details of the transaction. 

    Liability Planning 

    Student-athletes have been able to bring in thousands and in some cases millions of dollars through NIL deals. Without appropriate liability planning, personal assets and income could be at stake if a camp participant were to suffer a serious injury. While there is always inherent risk involved in any sports activity, student-athletes should work to limit the risk of injury and limit the risk of liability. Limiting the risk of injury to participants includes making sure that the facility and equipment are safe and adequate. College student-athletes can limit their risk of liability (should a participant get injured) by taking the following steps: 

    (1) Creating an LLC 

    Creating an LLC, a limited liability company, can help to shield personal assets (and NIL income) from a lawsuit. With a limited liability entity, the limit of a lawsuit judgment is up to the amount of money invested in the business, or the total assets of the LLC. Personal assets and assets from other business ventures will not be at stake. While many student-athletes have created an LLC for their intellectual property and NIL ventures, it would be smart to create a separate limited liability entity for hosting camps and lessons. That way, if an accident were to happen during the course of a camp or lessons, the student-athlete’s NIL income and intellectual property value would not be at stake.

    (2) Liability Waivers 

    In addition to creating a limited liability entity, liability waivers are necessary for any event where participants may have some risk of getting injured. A strong liability waiver can inform participants of the risks and protect student-athletes from any lawsuits arising from any injury that may occur. 

    Cost for Participants and Collecting Fees 

    The cost for participants will largely depend on the sport, the market, and the number of participants. For one-on-one, private lessons, a participant will pay more per hour than for a camp with 100 attendees. Additionally, the notability of the student-athlete running the camp can also influence the cost, much like with NIL. 

    College athletes hosting camps can collect fees in cash, check, Venmo, Square, PayPal, or through any other payment site. Most of these platforms will take a percentage or charge a small fee for usage. Make sure to set up an account through your LLC. Lastly, do not forget that the income you receive from hosting a camp will be subject to taxation.

    By Joshua Frieser

    Joshua M. Frieser, Esq. is a college athlete lawyer and Principal Attorney at Frieser Legal. His practice is focused on the representation of NCAA student-athletes and working to solve their unique legal needs. Josh represents college athletes in formal NCAA regulatory proceedings and in Name, Image and Likeness licensing agreements, as well as in related intellectual property and business planning matters.

  • Why NCAA Athletes are not Allowed to Wear Sponsored Apparel in-Game but Professional Athletes (sometimes) Can

    Since the beginning of the “NIL era,” NCAA student-athletes have had the opportunity to utilize their Name, Image, and Likeness (NIL) for commercial purposes while maintaining their NCAA eligibility. Much like professional athletes, college athletes have engaged in sponsored social media or “influencer” advertising, signing autographs, memorabilia sales, paid public appearances, and product endorsements. One important difference between the endorsement deals that NCAA student-athletes can sign and the ones that professional athletes can sign is in relation to in-game sponsored apparel.

    In many cases, professional athletes are allowed to wear sponsored, branded apparel containing corporate logos while on the court or field of play. NCAA student-athletes are not able to do so, even though they can now capitalize on their NIL off of the court or field. The primary reason for this is federal labor law, which permits unionized employees to collectively negotiate conditions of their employment. Because most professional athletes are members of a union (the NBPA, NFLPA, MLBPA, NHLPA), they are able to negotiate the extent to which they can wear sponsored apparel during competition.

    Although it is subject to substantial debate and may evolve over time, courts have consistently determined that NCAA student-athletes are not employees for labor law purposes. For now, student-athletes are not able to unionize and collectively bargain. The NCAA and its member conferences and universities ultimately determine what student-athletes are allowed to wear during competition. As of 2021, student-athletes are not allowed to utilize their NIL during competition.

    The Key Difference for Professional Athletes 

    Professional athletes’ ability to wear sponsored apparel on the court or field of play is regulated by a collective bargaining agreement (CBA). A CBA is a labor agreement between an employer (or group of employers) and employees. Professional athletes are able to collectively negotiate the terms and conditions of their employment with their employers—the team owners. Those negotiated terms and conditions can include individual salary maximums and minimums, contract length maximums and minimums, a team salary cap or floor, as well as other details, including travel, facilities, trainers, medical staff, health insurance, and sponsored apparel players are allowed to wear during competition.

    Each professional sports league has a different CBA. The terms can differ substantially from league to league. In terms of on-court sponsored apparel, the National Basketball Association’s CBA requires that players only wear items supplied by the team as part of their uniform. The uniform includes their jersey, shorts, socks, kneepads, headbands and wristbands. Because Nike has an exclusive contract with the NBA, all uniforms include Nike products. Importantly, however, the NBA players have negotiated an important exclusion—sneakers. NBA players are allowed to wear any brand of sneakers that they want since sneakers are not considered part of the uniform. This provision in the NBA CBA allows players to sign on-court endorsement deals with Nike, Adidas, Under Armour, Puma, New Balance, or any other sneaker brand of their choosing.

    Likewise, the recently expired Major League Baseball CBA permits players to wear sponsored corporate logos on their equipment, subject to certain size restrictions. MLB players are allowed to sign endorsement deals for logos on their batting gloves, elbow and shin guards, catching equipment (chest protectors, knee/shin guards, and masks), sunglasses, and wristbands. Like NBA players’ sneakers, this sponsored equipment can be from any brand: Nike, Adidas, Under Armour, Franklin, Rawlings or any other.

    Rules for Student-Athletes 

    The NCAA’s interim NIL policy only states that a student-athlete’s eligibility will not be affected by his or her engagement in NIL activity. In suspending Bylaw 12 (which governs amateurism and athletics eligibility) enforcement, the NCAA currently does not have a direct rule restricting student-athletes from wearing sponsored apparel on the field or court, aside from traditional uniform rules. The NCAA uniform rules do allow for student-athletes to wear commercial logos on their uniforms, but the commercial logos that appear on uniforms and equipment are negotiated by schools, not student-athletes.

    While the NCAA may ultimately pass legislation on the issue, it has directed student-athletes to their respective state laws and institutional policies on NIL. Some state laws directly prohibit student-athletes from entering into NIL contracts that conflict with institutional sponsors entirely. California’s NIL law prohibits student-athletes from entering into an NIL contract “if a provision of the contract is in conflict with a provision of the athlete’s team contract.” If a California student-athlete attends a school that has a sponsor for a particular product, they may not be able to sign an NIL deal with a different company that offers similar products. For example, Ready Nutrition is the official protein of the UCLA Bruins. UCLA student-athletes would not be able to sign NIL deals with another protein company under California state law.

    Additionally, many NCAA institutions also prohibit student-athletes from entering into NIL contracts that conflict with athletic department sponsorships. For example, Marquette University’s NIL policy states that “NIL activity may not conflict with an existing institutional sponsorship agreement or other contract of Marquette University.” Marquette student-athletes would not be able to sign NIL deals with Adidas or Under Armour for on-court or on-field apparel (sneakers, cleats, gloves, headbands… etc.), as Marquette has a sponsorship contract with Nike/Jordan, which includes uniforms and accessories for student-athletes.

    For now, student-athlete NIL activity is only allowed off the court or field of play. College athletes are not able to sign NIL deals to wear a particular brand of equipment or accessories during competition. Ultimately, antitrust law or labor law may have an impact on NCAA athletes’ ability to wear sponsored apparel in-game, but under current NIL rules, student-athletes should not try to utilize their NIL for in-game sponsorships, or they could have eligibility issues or breach of contract concerns.

    By Joshua Frieser

    Joshua M. Frieser, Esq. is a college sports lawyer and Principal Attorney at Frieser Legal. His practice is focused on the representation of college athletes and working to solve their unique legal needs. Josh represents college athletes in formal NCAA regulatory proceedings and NIL licensing agreements, as well as in related intellectual property and business planning matters.

  • What Student-Athletes Should Include in an NIL Contract

    Since July 1st, 2021, NCAA student-athletes have been able to enter into Name, Image, and Likeness (NIL) contracts with companies and brands looking to sponsor them. Those NIL contracts have included deals with national brands, such as Gatorade and Dr Pepper, as well as local businesses like car dealerships and restaurants

    While hiring an attorney or representative to draft and negotiate your NIL contracts is typically a smart decision, it might not be practical for some NIL deals. On Opendorse, an NIL marketplace for student-athletes, the average NIL compensation per Division I student-athlete user through the end of September, 2021, was $391. For NIL deals where you are not hiring an attorney, it is still important to include the key details of the agreement. Make sure that these details are communicated with the sponsoring business and agreed upon prior to finalizing the NIL deal. Although under certain circumstances a verbal contract would be valid, it is generally preferable to have a signed, written agreement. 

    Here are some important provisions for student-athletes to include in an NIL agreement: 

    • the name of the student-athlete and business entering into the NIL deal; 
    • the date of the agreement. Make sure to include the end date of the agreement. If the agreement is for one sponsored social media post, include the date you will be posting; 
    • the scope and specifics of the agreement. What exactly will be included in the deal?; 
    • the dollar figure you have negotiated for the deal; 
    • the details of how and when you will be paid: check, Venmo, cash, installment payments, lump sum… etc.

    These basic provisions should be able to cover more straightforward NIL deals. For more complex agreements, consider hiring an attorney to ensure that you know exactly what you are agreeing to. Particularly for NIL deals that include ongoing partnerships or intellectual property provisions.

    By Joshua Frieser

    Joshua M. Frieser, Esq. is a college sports lawyer and Principal Attorney at Frieser Legal. His practice is focused on the representation of college athletes and working to solve their unique legal needs. Josh represents college athletes in formal NCAA regulatory proceedings and NIL licensing agreements, as well as in related intellectual property and business planning matters.

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