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Arizona Name, Image and Likeness athlete endorsement rules

Posted by Steve Vondran | Jan 13, 2024

Vondran Legal® Sports Law Representation - Arizona NIL Sports Marketing Law.  We have offices in California and Arizona.  Call us at (877) 276-5084 for legal representation.  We can assist brands, players, coaches, and institutions in NIL marketing, contracts and compliance.

Arizona sports lawyer NIL

Bonus Materials:Athletes, don't forget, if you have a catchy, unique and distinct sports nickname, it may be wise to seek a federally registered trademark to protect it.

Introduction

Thanks to new legislation, student-athletes may now legally profit through the use of their name, image and likeness marketing and promotions efforts.  If you have a strong social media following on sites like Instagram, TikTok, YouTube, Reddit or other social media platforms AND you are an accomplished athlete that is highly sought after, you may have significant opportunities "off the field" to make a handsome income.  However, it is always prudent to make sure the NIL contracts you are signing contain language, clauses, and terms that are in YOUR BEST INTEREST, and which specifically define the relationship between you and the brand that seeks to hire you.  Are firm can help players, coaches, colleges, universities and brands in NIL endorsement deals.  Here is what you need to know about Arizona's NIL law.  Also note, it is not currently permitted for high school athletes to agree or enter into NIL endorsement contracts and this would result in loss of amateur status.

Arizona NIL Law - Senate Bill 1296

The NIL statute in Arizona is fairly straight-forward and states under A.R.S. §15-1892:

A. Any postsecondary education institution that competes in an intercollegiate sport shall allow a student-athlete to earn compensation from the use of the student athlete's own name, image or likeness to the extent allowed by the rules established by the relevant national association for promoting or regulating collegiate athletics.
B. A student athlete may not be denied a scholarship, have a scholarship revoked, be deemed ineligible for a scholarship or be deemed ineligible for participating in intercollegiate athletics based on earning compensation for the use of that student athlete's name, image or likeness in a manner and to the extent allowed by the rules established by the relevant national association for promoting or regulating collegiate athletics.
C. An athlete agent who advises or represents a student athlete in connection with earning compensation from the use of that student athlete's own name, image or likeness shall comply with chapter 13, article 10 of this title.
D. This section does not authorize student athletes to enter into a contract providing compensation for the use of the student athlete's name, image or likeness if doing so either:
1. Violates the intellectual property rights of any person, including the student athlete's postsecondary education institution.  (it is important for an athlete to be sure they have the rights to appear in uniform and that they are not otherwise violating any school policy or terms of any agreement with the institution).
2. Conflicts with the student athlete's team contract.
E. For the purposes of this section, "athlete agent", "intercollegiate sport", "person" and "student athlete" have the same meanings prescribed in section 15-1762.

A.R.S. 15-1762 (definitions)

Here are the definitions you need to be aware of under A.R.S. 15-1762:

In this article, unless the context otherwise requires:

1. "Agency contract" means an agreement in which a student athlete authorizes a person to negotiate or solicit a professional sports services contract or an endorsement contract on behalf of the student athlete.

2. "Athlete agent" means an individual who enters into an agency contract with a student athlete or, directly or indirectly, recruits or solicits a student athlete to enter into an agency contract.  Athlete agent includes an individual who represents to the public that the individual is an athlete agent.  Athlete agent does not include a spouse, parent, sibling, grandparent or guardian of the student athlete or an individual acting solely on behalf of a professional sports team or a professional sports organization.

3. "Athletic director" means an individual responsible for administering the overall athletic program of an educational institution or, if an educational institution has separately administered athletic programs for male students and female students, the athletic program for males or the athletic program for females.

4. "Endorsement contract" means an agreement under which a student athlete is employed or receives consideration to use on behalf of the other party any value that the student athlete may generate because of publicity, reputation, following or fame that was obtained because of athletic ability or performance.

5. "Intercollegiate sport" means a sport that is played at the collegiate level and for which eligibility requirements for participation by a student athlete are established by a national association for the promotion or regulation of collegiate athletics.

6. "Person" means an individual, a corporation, a business trust, an estate, a trust, a partnership, a limited liability company, an association, a joint venture, a government, a governmental subdivision, a government agency, a government instrumentality, a public corporation or any other legal or commercial entity.

7. "Professional sports services contract" means an agreement under which an individual is employed, or agrees to render services, as a player on a professional sports team, with a professional sports organization or as a professional athlete.

8. "Record" means information that is inscribed on a tangible medium or that is stored in an electronic format or any other medium and that is retrievable in perceivable form.

9. "Student athlete" means an individual who engages in, is eligible to engage in or may be eligible in the future to engage in any intercollegiate sport.  If an individual is permanently ineligible to participate in a particular intercollegiate sport, the individual is not a student athlete for purposes of that sport. 

Chapter 13, article 10 compliance for Sports Agents in Arizona

Agent activity in the state of Arizona is governed by the revised uniform athlete agents act, the statute for which can be found below:

Chapter 13, Article 10, §§ 15-1761 to 15-1775

The AZ revised uniform athlete agents act. Under A.R.S. § 15-1770:

A. An agency contract shall be a record that is signed or otherwise authenticated by the parties.
B. An agency contract shall state or contain the following:
1. The amount and method of calculating the consideration to be paid by the student athlete for services to be provided by the athlete agent under the contract and any other consideration the athlete agent has received or will receive from any other source for entering into the contract or for providing the services.
2. The name of any person who will be compensated because the student athlete signed the agency contract.
3. A description of any expenses that the student athlete agrees to reimburse the athlete agent.
4. A description of the services to be provided to the student athlete.
5. The duration of the contract.
6. The date of the execution of the contract.
C. An agency contract shall contain, in close proximity to the signature of the student athlete, a conspicuous notice in bold-faced type in capital letters that states the following:

Warning to Student Athlete

If you sign this contract:

1. You may lose your eligibility to compete as a student athlete in your sport.
2. If you have an athletic director, within 72 hours after entering into this contract or before the next athletic event in which you may participate, whichever comes first, both you and your athlete agent must notify your athletic director.
3. You may cancel this contract within 14 days after signing it. Cancellation of this contract may not reinstate your eligibility.
D. An agency contract that does not conform to this section is voidable by the student athlete. If a student athlete voids an agency contract, the student athlete is not required to pay any consideration under the contract or to return any consideration that was received from the athlete agent and that was given to induce the student athlete to enter into the contract.
E. The athlete agent shall give a copy of the signed or otherwise authenticated agency contract to the student athlete at the time of execution.

Essential Elements to a NIL sports endorsement agreement

Notice to educational institution under A.R.S. Section 15-1771 

A. Within seventy-two hours after entering into an agency contract or before the next scheduled athletic event in which the student athlete may participate, whichever occurs first, the athlete agent shall give notice in a record of the existence of the contract to the athletic director of the educational institution at which the student athlete is enrolled or the educational institution at which the athlete agent has reasonable grounds to believe the student athlete intends to enroll.

B. Within seventy-two hours after entering into an agency contract or before the next athletic event in which the student athlete may participate, whichever occurs first, the student athlete shall inform the athletic director of the educational institution at which the student athlete is enrolled that he or she has entered into an agency contract.


A.R.S. Section 15-1772 - Student athlete's right to cancel contract

A. A student athlete may cancel an agency contract by giving notice of the cancellation to the athlete agent in a record within fourteen days after the contract is signed.
B. A student athlete may not waive the right to cancel an agency contract.
C. If a student athlete cancels an agency contract, the student athlete is not required to pay any consideration under the contract or to return any consideration received from the athlete agent to induce the student athlete to enter into the contract.

 

Section 15-1773 - Required records

A. An athlete agent shall retain all of the following records for a period of five years:
1. The name and address of each individual represented by the athlete agent.
2. Any agency contract entered into by the athlete agent.
3. Documentation of any direct costs incurred by the athlete agent in the recruitment or solicitation of a student athlete to enter into an agency contract.
B. The records required to be retained pursuant to subsection A shall be open to inspection by the secretary of state during normal business hours.


A.R.S. Section 15-1774 - Prohibited conduct; violation; classification

A. It is unlawful for an athlete agent, with the intent to induce a student athlete to enter into an agency contract, to engage in any of the following conduct:
1. Give any materially false or misleading information or make a materially false promise or representation.
2. Furnish anything of value to a student athlete before the student athlete enters into the agency contract.
3. Furnish anything of value to any individual other than the student athlete or another athlete agent.
B. It is unlawful for an athlete agent to intentionally commit any of the following conduct:
1. Refuse or fail to retain or permit inspection of the records required to be retained by section 15-1773.
2. Predate or postdate an agency contract.
3. Fail to notify a student athlete before the student athlete signs or otherwise authenticates an agency contract for a particular sport that the signing or authentication may make the student athlete ineligible to participate as a student athlete in that sport.
C. A person who violates this section is guilty of a class 1 misdemeanor.

If you are dealing with a problem with an Arizona sports agent give us a call at the number above. 


Here are potential penalties and damages for the illegal conduct of an AZ sports agent under A.R.S. §15-1775:

Under A.R.S. 15-1775:

A. An educational institution may bring a cause of action against an athlete agent or a former student athlete for damages caused by a violation of this article. The court may award to the prevailing party costs and reasonable attorney fees in any action brought pursuant to this section.
B. An educational institution may recover damages pursuant to subsection a including losses and expenses incurred as a result of the conduct of an athlete agent or a former student athlete if the educational institution was injured by a violation of this article or was penalized, disqualified or suspended from participation in athletics by a national association for the promotion and regulation of athletics, by an athletic conference or by reasonable self-imposed disciplinary action taken to mitigate sanctions likely to be imposed by such an organization.
C. A right of action under this section does not accrue until the educational institution discovers or by the exercise of reasonable diligence should have discovered the violation by the athlete agent or the former student athlete.
D. Any liability of the athlete agent or the former student athlete under this section is several and not joint.
E. This article does not restrict other legal or equitable rights, remedies or defenses of any person.

 

Social Media Influencer Disclosure Requirements for Social Media Influencers

Colleges and Universities in Arizona

Here are the main colleges and universities in the State of Arizona:

NCAA Arizona Schools

What schools are affected by Arizona NIL?

All institutions with NCAA athletic programs are affected by NIL. In the state of Arizona, the following schools will be affected:

Division I

  • University of Arizona (Pac-12)
  • Arizona State University (Pac-12)
  • Grand Canyon University (WAC)
  • Northern Arizona University (Big Sky)

NAIA

  • Arizona Christian University
  • Benedictine University at Mesa
  • Embry–Riddle Aeronautical University, Prescott
  • Ottawa University Arizona
  • Park University Gilbert

NJCAA

  • Arizona Western College
  • Central Arizona College
  • Chandler-Gilbert Community College
  • Cochise College
  • Eastern Arizona College
  • Estrella Mountain Community College
  • GateWay Community College
  • Glendale Community College
  • Mesa Community College
  • Paradise Valley Community College
  • Phoenix College
  • Pima Community College
  • Scottsdale Community College
  • South Mountain Community College
  • Tohono O'odham Community College
  • Yavapai College

Paid activities a student-athlete can legally do with proper compliance attention

Student-athletes in male and female sports have a wide variety of promotional activities they can engage in, subject to the rules.  For example:

  • Appear in a commercial 
  • Make a video
  • Online endorsements via social media (ex. Instagram promotion for a company or brand)
  • Personal appearance (ex. at a charitable function)
  • appearances
  • Signing autographs/memorabilia
  • Appear on a podcast
  • Appear at a kid camp or clinic
  • Provide private lessons in their sport
  • Promotional activity for crowdfunding
  • Other for-pay (but not for play) endorsement and promotional activities

10 Things a student athlete can do NOW to prepare for a potentially lucrative future in Name, Image and Likeness sports marketing

Here is a great blog I wrote on how to improve your chances to get a NIL sports marketing deal from a brand.

Professional Sports Teams in Arizona

Here are the professional sports teams in Arizona.  We can assist most professional athletes with contractual representation, sports marketing, social media disputes and civil litigation:

1. Arizona Cardinals - Located in Glendale, Arizona; National Football League (NFL)
2. Arizona Coyotes - Located in Glendale, Arizona; National Hockey League (NHL)
3. Arizona Diamondbacks - Located in Phoenix, Arizona; Major League Baseball (MLB)
4. Phoenix Suns - Located in Phoenix, Arizona; National Basketball Association (NBA)
5. Phoenix Mercury - Located in Phoenix, Arizona; Women's National Basketball Association (WNBA)
6. Phoenix Rising FC - Located in Tempe, Arizona; United Soccer League Championship (USL)
7. Real Salt Lake Arizona - Located in Casa Grande, Arizona; United States Soccer Development Academy (USSDA)
8. Arizona Rattlers - Located in Phoenix, Arizona; Indoor Football League (IFL)
9. Arizona Hotshots - Located in Tempe, Arizona; Alliance of American Football (defunct)
10. Tucson Roadrunners - Located in Tucson, Arizona; American Hockey League (AHL)
11. Northern Arizona Suns - Located in Prescott Valley, Arizona; NBA G League (G League)
12. Phoenix Mercury - Women's National Basketball Association (WNBA)
13. Arizona United Soccer Club - Located in Peoria, Arizona; United Soccer League (USL) (formerly)
14. FC Tucson - Located in Tucson, Arizona; USL League One (USL1)
15. Phoenix Firebirds - Located in Phoenix, Arizona; Premier Development League (PDL) (closed in 2003)
16. Arizona Outlaws - Located in Phoenix, Arizona; Athletes Unlimited (women's professional softball)

Essential terms of an influencer endorsement agreement

There are careful considerations that should be made before entering into a NIL publicity agreement.  Here is a general overview of the main things to be thinking about before signing a NIL endorsement contract.

  1. Identification of all parties
  2. Exclusive vs. non-exclusive
  3. Compliance statements, as noted above
  4. Deliverables (what will the athlete need to do for the pay)
  5. Timeframes and deadlines
  6. Payment specifics
  7. Intellectual property rights
  8. FTC influencer compliance obligations
  9. Termination rights
  10. Dispute resolution 
  11. Choice of law

FTC Social Media Influencer Compliance

Student-athletes also need to make sure they are complying with the FTC (Federal Trade Commission) rules for social media influencers in order to avoid false and deceptive conduct, which can lead to enforcement action.  Watch this video overview by Steve Vondran, IP, entertainment and social media attorney.

NCAA Rules in regard to Name, Image and Likeness Student-Athlete Marketing

All student-athletes and their representatives need to ensure compliance with the NCAA rules and regulations.  In general, student-athletes cannot enter into any NIL agreement that involves pay-for-play or payment based on athletic performance, such as receiving compensation/incentives for scoring goals or making tackles, or being paid for attending the school (recruiting violations). Additionally, athletes cannot use school logos, trademarks, or other copyrighted material during their NIL endorsements unless permitted by their respective institutions.  The NCAA rules also requires schools to educate student-athletes about the rules surrounding NIL opportunities and ensure compliance with state laws and regulations. 

Prohibited conduct

Arizona NIL Law states that athletes cannot enter into contracts that conflict with their team contracts. Athletes cannot enter into contracts that conflict with the intellectual property rights of anyone else, including their school. Agents hired by athletes must meet certain licensing requirements. The law does not explicitly require athletes to disclose NIL contracts to their school.

NIL Resources

  1. OpenEndorse platform for athlete and brand connections
  2. FTC rules for social media influencers
  3. On3.com - athlete valuations from all sports
  4. NCAA rules and regulations regarding NIL 

Contact an Arizona NIL law firm

We can help with sports agent disputes, NIL sports marketing and endorsement deals for college and pro athletes, NIL institutional compliance with NCAA rules and regulations, intellectual property and social media disputes including mediation, arbitration and litigation.  Contact us at (877) 276-5084 or contact us through our online form.   Please leave your best phone number to contact you.  We are also licensed to practice law and have offices in Newport Beach, Santa Monica, and San Francsico, California.

About the Author

Steve Vondran

Thank you for viewing our blogs, videos and podcasts. As noted, all information on this website is Attorney Advertising. Decisions to hire an attorney should never be based on advertising alone. Any past results discussed herein do not guarantee or predict any future results. All blogs are written by Steve Vondran, Esq. unless otherwise indicated. Our firm handles a wide variety of intellectual property and entertainment law cases from music and video law, Youtube disputes, DMCA litigation, copyright infringement cases involving software licensing disputes (ex. BSA, SIIA, Siemens, Autodesk, Vero, CNC, VB Conversion and others), torrent internet file-sharing (Strike 3 and Malibu Media), California right of publicity, TV Signal Piracy, and many other types of IP, piracy, technology, and social media disputes. Call us at (877) 276-5084. AZ Bar Lic. #025911 CA. Bar Lic. #232337

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