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Endorsements Sports Business

Athlete Representation In China

Here in the United States, agents are used to taking 4-5% on MLB contracts, 3% on NFL contracts, 4% on NBA contracts, 5% on NHL contracts, and 10% from the teams if their clients play basketball overseas. Endorsement takes usually are around 15-20%. Some athletes complain that the percentages handed off to agents for their services are not equal to what they deserve. If only they knew what their brothers and sisters in China were paying out, and not only to their personal agents.

Most athletes, also, are still managed by state organizations. While sports like basketball and soccer are more commercialized than others, most still fall under a system called Sports for the Nation, where the value of an athlete’s brand falls largely under the domain of “state assets”. Yao Ming, who moved abroad to play, has an international team of professional money managers. Liu Xiang’s “state owned” business activities, on the other hand, are managed by the Chinese Athletics Association. Intermediary organizations must pass through the Association to discuss advertising representative business. Under the state-owned athletic system, athletes’ advertising earnings are allocated by provisions of China’s State General Administration of Sport. Accordingly, Liu Xiang keeps 50 percent of his earnings, with 15 percent going to his coach Sun Haiping, and 20 percent to his hometown Shanghai’s sports bureau. The remaining 15 percent is allocated to the Chinese Athletics Association. Although there isn’t a vast difference between the number of ads done by Yao Ming and Liu Xiang, the hurdle star’s income is less than half of the basketball star.

Chinese athletes who disobey the rules can pay a heavy price. In 2005, Sydney Olympic diving champion Tian Liang was removed from the Olympic team for participating in too many commercial events. The decision forced Tian out of the Beijing Olympics and also saw the sponsorships for the former “Sunshine Boy” fade into the twilight.

Being able to keep 80%+ of an endorsement deal that your agent was able to procure for you does not seem so bad after all anymore, does it?

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.