Skip to Main Content

Keeping you informed

Fourth Circuit Provides Clarity Regarding 'Hybrid Zone' for College Athletes Signing Contracts With Agents

    Publications
  • August 15, 2024

Nicholas Lee wrote an article for Sports Business Journal about a recent U.S. Court of Appeals for the Fourth Circuit ruling. The ruling provides clarity regarding a so-called 'hybrid zone' for college athletes signing contracts with agents.

"A sports marketing agency’s contract with a star Duke University basketball player was void under a North Carolina law aimed at protecting college athletes, the U.S. Court of Appeals for the Fourth Circuit ruled in May," Nicholas wrote. "Prime Sports Marketing failed to meet two key provisions under the North Carolina Uniform Athlete Agents Act when it entered into an agreement with Zion Williamson, a Duke standout who was selected as the No. 1 overall pick in the 2019 NBA Draft."

"First, under the act, agents seeking to contract with student-athletes must register with the North Carolina Secretary of State," he continued. "Second, the contract must contain a warning notice to the student-athlete in a specific place in the contract and in boldface type and capital letters."

"The Fourth Circuit’s ruling helps provide both student-athletes and their agents some clarity on the contracting 'rules of the road' when the athlete is in what some call the 'hybrid zone' — the period of time when student athletes have finished their last collegiate games and are expecting to go pro but haven’t yet been drafted or signed a contract to play professional sports," Nicholas continued.

Click here to read the full article: Fourth Circuit Provides Clarity Regarding 'Hybrid Zone for College Athletes Signing Contracts With Agents

Sports Business Journal reaches a national audience of executives and other decision-makers in the sports industry.