By Jared P. Vasiliauskas and Michael V. Viverito
Recently, former Florida Gator, and current Chicago Bears defensive lineman Gervon Dexter, Sr., brought suit for declaratory relief in the United States District Court for the Northern District of Florida seeking to void an agreement that was entered between himself and the Defendant, Big League Advance during his junior year of college. Dexter alleges that the Agreement is void for one or more of the following reasons: (i) the Defendant was not a licensed Athlete Agent under Florida law, (ii) the Agreement violated the Florida NIL (“Name, Image and Likeness”) statute, and (iii) the “Extended Term” of the Agreement did not take effect until after Dexter was no longer eligible to compete in intercollegiate athletics.
In exchange for the ability to use Dexter’s NIL, Big League Advantage paid him $436,485.00. The Agreement contained an “Extended Term” whereby Dexter was required to pay Big League Advance fifteen percent (15%) of his pre-tax NFL earnings for a period of 25 years.
Under Florida’s NIL law, “[t]he duration of a contract for representation of an intercollegiate athlete or compensation for the use of an intercollegiate athlete’s name, image or likeness may not extend beyond her or his participation in an athletic program at a postsecondary educational institution.” An “Intercollegiate Athlete” is a student who participates in an Athletic Program.
Based on the allegations within Dexter’s complaint, the timeline for being presented and executing this Agreement was short. He received the agreement at approximately 7:58 PM EST on May 16, 2022, and had retuned it to Big League Advance’s CEO by approximately 9:52 AM EST on May 17, 2022. Throughout the process, Dexter was not represented by counsel, or any other individual on his behalf, in negotiating the Agreement.
While the litigation in this case is in the early stages, there are two key points that should be noted for athletes, agents and practitioners surrounding this matter. First, athletes need to be aware of the contracts they are signing and fully understand the terms they are binding themselves to before signing an agreement. This will likely require the athlete to seek the advice of an attorney who can explain the legal impact of the contract, and the risks that the athlete faces by signing it. Athletes need to ensure that they have people in their network that they can trust and rely upon to provide guidance and referrals to counsel that will protect their interest while negotiating NIL rights.
The second key point is for agents and attorneys to ensure that they are familiar with the laws, rules and policies of the state where their clients are competing, and of the schools that their clients are attending. This will ensure that they are able to best represent the needs of their client, including seeking specialized local counsel where necessary.
As the landscape of NIL continues to evolve, it is important for athletes and their representatives to remain aware of potential pitfalls of signing these agreements that could have negative consequences on the athlete’s future. The terms of a contract are always important, and the risks associated with not understanding fully those terms can have a lasting and costly impact on an athlete’s future.
The Power & Cronin, Ltd., Sports Law team is experienced in counseling athletes and their representatives on the complexities of the name, image and likeness landscape. If you have any questions about name, image and likeness or the terms of an NIL agreement, please contact attorneys Jared P. Vasiliauskas or Michael V. Viverito.
