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Sports Agents

South Carolina Gets More Aggressive With Agents, Including A 10% Cap On NIL Fees

South Carolina athlete agents

Over the past couple of years, many states have passed name, image, and likeness (NIL) bills and had them signed into law by their respective governors. These bills (we have compiled a list) almost exclusively focus on providing college athletes with NIL rights, while also creating some guardrails for the athletes, schools, and third-parties involved in NIL activities.

However, South Carolina decided to reach well beyond sticking to the subject. In addition to making it possible for college athletes to secure representation in the form of athlete agents (as all other states included), South Carolina added provisions that agents need to be aware of, as they go well beyond the model terms set forth in the Uniform Athlete Agents Act of 2000 and the more recently Revised Uniform Athlete Agents Act of 2015, with amendments added in 2019.

Here is what you need to know:

  1. The definition of an “agency contract” now includes a NIL contract. That is assumed to be true in all other states with athlete agent laws as well, so it is not a material change.
  2. Athlete agents licensed in South Carolina may now have their licenses suspended, refused to be renewed, or revoked if the agents do not complete a minimum of 20 hours of continuing athlete agent education coursework biennially. This is the first state that I am aware of having any requirement concerning continuing education. It is not yet clear as to what type of education and coursework will qualify.
  3. South Carolina has increased its licensing fee by a significant amount of money. Initial applicants must pay $1,500. The cost is $2,500 for registration based on a certificate of registration issued by another state. Renewals will run $700. If that renewal is based on a renewal of registration in another state then it is $1,000.
  4. As far as I am aware, South Carolina has become the only state that, by statute, limits the amount of commission that an agent can take on NIL deals. South Carolina has capped that commission at 10%.

I have no understanding as to why South Carolina decided to make it a much less desirable place for athlete agents to conduct business. This could cause many reputable agents to stay away from recruiting talent in the state due to the high costs, a new continuing educational requirement, and an overly restrictive cap on commissions. Most agents in the sports and entertainment industry charge more than a 10% commission on deals procured and negotiated. Who came up with this 10% cap concept and where did it come from?

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.