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The United Football League’s $150,000 Transfer Fee

I have no idea if the United Football League (UFL) is doing well with its attendance or TV ratings, and I sure hope that the league does not lose another $30 million as it did last year.  What I do know is that many agents persuade their fringe NFL clients to sign contracts with the UFL, because of the hope that it will lead to increased exposure on a high level of play, and perhaps a future NFL contract.

While agents might be in an uproar regarding the UFL demanding that NFL teams interested in signing UFL players to their active rosters after the season pay a $150,000 transfer fee, the only people with a right to be upset are the players who might not get signed because of the large fee.  And who should they get upset at?  Their agents, if they never explained the $150,000 buyout prior to signing a UFL player contract.

Section 3 titled, EXCLUSIVITY/RELEASE, lays out the transfer fee in subparagraph (b)(iv).  It states the following:

Player acknowledges and agrees that he may only receive a Release pursuant to this subparagraph (b), upon payment of One Hundred Fifty Thousand Dollars ($150,000.00) (the “Release Fee”), to be paid to Management by Player, the NFL, and NFL Club or any combination thereof.  Such Release Fee may be reduced or waived at the sole and absolute discretion of the Commissioner.

The UFL could certainly decide to waive the fee, as it did last year, but that does not change the fact that this fee exists for everyone to notice prior to signing a contract with the UFL.  As any lawyer will say, “there is no such thing as a mistake of law defense.”  The same can be said about this fee.  There is no applicable defense of, “But I did not know or was never told that there is a $150,000 transfer fee!”  There could potentially be a legal malpractice claim against an attorney-agent who did not properly divulge such important information to his clients prior to having them sign a UFL player contract.

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.

6 replies on “The United Football League’s $150,000 Transfer Fee”

Sure, their could be a malpractice claim if:
1. The agent was also a lawyer
2. It was proven that the agent did not explain the provision
3. it was proven that the agent told the player that he didn’t have to read the contract
4. it was proven that the player did not read the provision
5. it was proven that the player would not have signed a contract containing the provision
6. it was proven that the player suffered actual, non-speculative, compensatory damages- i.e. an NFL team definitely would have signed the player and paid him X amount of dollars and the player would have earned those dollars
7. It was proven that the player did everything in his power to get another job after he lost the NFL opportunity due to the transfer fee.

Sure, you need to explain every provision of every contract to your client. But realistically, the chances that a malpractice claim lies in your hypothetical are so remote that the angle that you have presented appears to miss the mark it terms of the overall relevancy of this issue

Whether the claim is a winner or not is not necessarily the point. The fact that it is even debatable means that it could turn into a lawsuit, which costs time and money, and potentially tarnishes one’s reputation.

By Post Author

I got your point. We agree, that it is important to make sure that you explain every provision of every contract to your clients. That said, the real, relevant issue in my opinion is not whether or not agents are explaining the provision, its whether or not the UFL should endeavor to enforce these provisions against NFL clubs signing players under UFL contracts.

There are a lot of ways around it. The $150,000 fee only applies if a player is added directly to an NFL team’s active roster. What’s the big deal with an NFL team first adding the player to its Practice Squad?

By Post Author

I have beaten this topic to death on uflaccess.com, but one thing that is important to note is that the fee was not in place last year, so an agent who assumed that the contract was the same for 2010, should be called out for not doing his or her job.

We review each contract EACH year, and draft analysis on any changes, liabilities, and important provisions. I’m not going to say that every agent should do exactly what we do, but some sort of analysis of the contract is necessary — if not, what exactly are you being paid for?

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