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Agencies Not Only Representing Athletes

One common misperception of many of the largest sports agencies is that they only focus on, or even spend a majority of their time and earn most of their revenues through, the representation athletes in their contractual negotiations.  For instance, IMG, which was founded in 1960 as a company that focused on representing athletes, has evolved into a company that actually earns a small portion of its revenues from that original focus.  Now, IMG makes big money on its product licensing division, event creation/management division, and even its athlete training division, which has a large presence in Bradenton, Florida.

IMG is not alone in this area.  In fact, Blue Entertainment Sports Television (the company that was recently sold to Lagardere) also does a lot of business outside of the representation of professional athletes.  Blue Entertainment Sports Television, also known as BEST, was owned by a private investment firm, Blue Equity.  The chairman and managing partner of that company is Jonathan Blue.  And one thing Blue wants the world to know is that he is not a sports agent.

In a presentation given to the Association for Corporate Growth in Kentucky, Blue opened with the following statement:

“I’m not a sports agent. I never was.”

It is not just Blue that is trying to shed that limiting phrase from what is associated with his name.  When I talk to executives at some of the largest “agencies”, a majority of them want to emphasize to me that when I report on their companies, I should talk about not only what they do in the athlete representation world, but their other areas of business as well.  And then there are those who also can’t stand the “sports agent” phrase to begin with.  As you may already know, I am one of those people.

But did you know that before BEST was sold, only one-third of its revenues came from the representation of athletes?  The majority of its revenues come from a combination of selling rights to events, managing events, and marketing opportunities.  And that makes sense.  Think about the small percentages that agents take on the contracts negotiated for their clients.  Some leagues limit the commission (NFL, NBA), but others like the MLB and NHL will force you out of being competitive if you charge any more than 5%.  If you don’t have a very successful client, the small percentage on their contracts won’t allow you to stay alive.  So many agencies generate revenues in other fashions.

By Darren Heitner

Darren Adam Heitner, Esq., is a preeminent sports attorney and the founder of Heitner Legal, P.L.L.C., a Fort Lauderdale-based law firm specializing in sports law, contract negotiations, intellectual property, and arbitration. He earned his Juris Doctor from the University of Florida Levin College of Law in 2010 and a Bachelor of Arts in Political Science, magna cum laude, from the University of Florida in 2007, where he was named Valedictorian of the College of Liberal Arts and Sciences. Admitted to practice in the state bars of Florida, New York, and the District of Columbia, as well as multiple federal courts, Darren also serves as a certified arbitrator with the American Arbitration Association.

As an adjunct professor, Darren imparts his expertise through teaching Sports Law at the University of Florida Levin College of Law and Name, Image, and Likeness (NIL) at the University of Miami School of Law in the Entertainment, Arts, and Sports Law LL.M. program. His scholarly contributions include authoring several books published by the American Bar Association, such as How to Play the Game: What Every Sports Attorney Needs to Know, and numerous articles in prominent publications like Forbes, Inc. Magazine, and Above the Law. His thought leadership in NIL has earned him recognition as one of the foremost experts by The Wall Street Journal, USA TODAY, and On3, and he has been lauded as a “power player in NIL deals” by Action Network and a “top sports trademark attorney” by Sportico.

Darren’s passion for sports law led him to establish Sports Agent Blog on December 31, 2005, initially titled “I Want To Be A Sports Agent.” The platform, created as a New Year’s resolution, has grown into a cornerstone of the sports agency community, offering in-depth analysis of industry trends, legal disputes, and agent-player dynamics. His commitment to the field is further evidenced by his representation of numerous athletes and sports agents, as well as his prior role as an Adjunct Professor at Indiana University Bloomington, where he developed and taught a course on Sport Agency Management from 2011 to 2014.

Darren’s contributions have been recognized with prestigious honors, including the University of Florida’s 40 Under 40 Award, the University of Florida Levin College of Law’s Outstanding Young Alumnus Award, and designation as the best lawyer in Fort Lauderdale by Fort Lauderdale Magazine. He remains an active voice in the sports law community, sharing insights through his weekly NIL newsletter and his X posts, engaging a broad audience on legal developments in sports.