With the rise of Name, Image, and Likeness (NIL) opportunities for student-athletes in Connecticut, the role of NIL agents has become increasingly important. These agents help athletes navigate endorsement deals, sponsorships, and other business ventures. However, many student-athletes and their families may wonder how NIL agents get paid in Connecticut and what rules govern these relationships.

Commission-Based Compensation

NIL agents in Connecticut typically earn a commission-based fee for their services, which means they receive a percentage of the compensation their clients (the student-athletes) earn from NIL deals. The exact percentage varies but commonly ranges between 10% to 20% of the athlete’s earnings from an endorsement or sponsorship agreement. These commissions are typically outlined in the contract between the athlete and the agent.

No Compensation for Athletic Performance

Connecticut law makes a clear distinction between NIL deals and compensation tied to athletic performance. NIL agents are not allowed to facilitate deals that pay athletes for their on-field or on-court performance. The agent’s earnings must be solely tied to the athlete’s commercial use of their name, image, or likeness.

Transparency and Disclosure

Under Connecticut’s NIL rules, both the athlete and the agent are required to fully disclose their relationship and any deals they enter into to the athlete’s educational institution. This ensures that there are no conflicts with existing sponsorships the school may have and that the school can confirm the legitimacy of the deals.

Additional Expenses

In addition to commission fees, NIL agents may also charge athletes for other business-related expenses. These can include legal services (e.g., contract review), marketing, and public relations. However, these expenses must be clearly outlined in the contract, and athletes should be fully aware of any additional fees they might incur.

Registered and Certified Agents

In Connecticut, it’s crucial that student-athletes work with licensed and registered agents who adhere to state laws and NCAA guidelines. Connecticut law requires that agents act in the best interests of their clients, providing fair representation and protecting the athlete from exploitative practices. Student-athletes and their families should vet their potential agents carefully to ensure compliance with state and NCAA regulations.

The Bottom Line

NIL agents in Connecticut typically get paid through commissions on the deals they negotiate for their clients. These arrangements provide agents with an incentive to secure the best possible endorsements for their athletes while ensuring that all agreements comply with both state law and NCAA guidelines. Athletes should carefully review agent contracts, fully understand the compensation structure, and ensure transparency to protect their interests.

For student-athletes in Connecticut, understanding how NIL agents are compensated is a crucial part of making informed decisions in this evolving landscape.

Tags: Connecticut, NIL, Paul Fenaroli, Student Athletes