Perfect Game/Fanatics NIL Issues?

2,532 Views | 12 Replies | Last: 9 days ago by OnlyForNow
Sean98
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I admittedly know NOTHING about this situation, and in terms of contracts the devil is in the details as they say. But thought this was an interesting situation nonetheless.

It's from an Athletic article, so perhaps behind a paywall.

Cliff's Notes: Allegedly Perfect Game, and their partner Fanatics, are requiring amateur baseball players that want to participate in the PG showcases and tourneys to sign away their NIL rights.

A few snippets:

  • While it's seen as a landmark deal for Perfect Game, the contract has stoked worries among a group of baseball agents, many of whom believe Perfect Game's requirement that amateur players sign away their name, image and likeness rights to participate in tournaments is exploitative, unethical and costing players future earnings.
  • "We have warned players for the past two years that Perfect Game is now (signing) away your individual rights for cards and for other things that should not be the design of the platform," said Scott Boras, arguably the most powerful agent in the sport. "They have now gotten into profit-taking on this. We're letting all young athletes know this is a reason not to sign their documents, not to participate. If they demand that, I wouldn't recommend student-athletes give away those rights. Why would they?"
  • Added another veteran agent, who spoke on the condition of anonymity to avoid any blowback for players he advises: "They are getting kids underage to sign contracts with no representation at all, and parents (also sign) who don't understand the ramifications. It's unethical and borderline illegal. They know that and they're still doing it. There should be a class action lawsuit against Perfect Game by the parents."
  • Typically, when players are drafted in a high round by an MLB team, they get a rookie card deal or a memorabilia deal.

    "Now Fanatics owns all of this and they can say, 'We don't need to do a deal with you, we have your signature already,'" said another agent. "Why would they pay for more when they have a warehouse full of stickers you've signed and consented to already?"



AggieGunslinger
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It isn't really surprising since PG has made a science out of monetizing youth baseball. We play in their tournaments since they generally have the best competition nationwide, but the constant bombardment of emails trying to get my son to fly to some showcase event that costs $1000 to attend is ridiculous. My son turned 13 a month ago.

Muktheduck
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PG was shady when I was working through that system over a decade ago. I'm sure it's only gotten worse with NIL involved
KT 90
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AggieGunslinger said:

It isn't really surprising since PG has made a science out of monetizing youth baseball. We play in their tournaments since they generally have the best competition nationwide, but the constant bombardment of emails trying to get my son to fly to some showcase event that costs $1000 to attend is ridiculous. My son turned 13 a month ago.


Yep, PG is definitely in it to make money. If they happen to help your kid get "seen" along the way, then fine, but they are there to make money first and foremost.

threeanout
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Would like to hear Brauny's comment on this.
TarponChaser
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I have two boys who play select baseball, almost exclusively in PG tournaments because that's by far the best competition in Houston. I would definitely like to learn and understand more of the ramifications because my oldest will be a freshman in HS in the fall and he's reaching a point where you can project that he's likely to be a legit D1 recruit in baseball and football. He's 6'0" 170-175 and only 13, projects to be 6'4"- 6'5" and will probably be 230-250 by the time he graduates HS. He can really run and is already touching 80 on the bump. Still very early in puberty too. Plays TE and DE and has a 74" wingspan.

Anyway, this is the precise language in the release forms you have to sign in order to play PG. Nothing has been altered, not even the capitalization.

MEDIA RELEASE: I UNDERSTAND THAT THE EVENT(S) MAY BE PHOTOGRAPHED, VIDEOTAPED, OR OTHERWISE RECORDED, AND I AGREE THAT PERFECT GAME MAY USE MY NAME, IMAGE, AND LIKENESS (IN ANY FORM WITHOUT REGARD TO DISTORTIONS OF CHARACTER, FORM, OR COLOR, OR ANY OTHER ALTERATION) IN PHOTOGRAPHS, VIDEOTAPES, AUDIOTAPES, AND OTHER MEDIA, WITHOUT ANY ADDITIONAL CONSIDERATION TO ME OR TO ANY THIRD PARTY. I ALSO UNDERSTAND THAT MY SIGNATURE MAY BE REQUIRED UPON CERTAIN MERCHANDISE WITHOUT ANY ADDITIONAL CONSIDERATION TO ME OR TO ANY THIRD PARTY. I HEREBY GRANT TO PERFECT GAME THE ABSOLUTE AND IRREVOCABLE RIGHT AND UNRESTRICTED PERMISSION TO USE MY NAME, SIGNATURE, LIKENESS, IMAGE, VOICE, AND/OR APPEARANCE AS SUCH MAY BE EMBODIED IN ANY PHOTOS, VIDEO RECORDINGS, AUDIOTAPES, DIGITAL IMAGES, BASEBALL/SOFTBALL CARDS, AND THE LIKE, TAKEN OR MADE ON BEHALF OF PERFECT GAME OR ITS AFFILIATES, AT THIS EVENT, OR ANY PAST OR FUTURE EVENTS I PARTICIPATE(D) IN RELATING TO PERFECT GAME, WITH ALL ADVERTISING RIGHTS RESERVED BY PERFECT GAME. I AGREE THAT PERFECT GAME HAS COMPLETE OWNERSHIP OF SUCH MATERIAL AND CAN USE SAID MATERIAL FOR ANY LAWFUL PURPOSE, INCLUDING, BUT NOT LIMITED TO, VIDEOS, PUBLICATIONS, ADVERTISEMENTS, NEWS RELEASES, TELEVISION, MOVIES, WEBSITES, BASEBALL/SOFTBALL CARDS, AND ANY PROMOTIONAL OR EDUCATIONAL MATERIALS IN ANY MEDIUM AND AT ANY TIME. I ACKNOWLEDGE THAT I WILL NOT RECEIVE ANY COMPENSATION FOR THE USE OF SUCH IMAGES, SIGNATURES, VIDEO, LIKENESS, ETC. I HEREBY RELEASE AND DISCHARGE PERFECT GAME, AND ITS AGENTS, REPRESENTATIVES, ASSIGNEES, SUBSIDIARIES, PARTNERS, SPONSORS, AND AFFILIATES FROM ANY AND ALL CLAIMS AND DEMANDS ARISING OUT OF OR IN CONNECTION WITH THE USE OF MY NAME, SIGNATURE, LIKENESS, IMAGE, VOICE AND/OR APPEARANCE, INCLUDING ANY AND ALL CLAIMS FOR INVASION OF PRIVACY, RIGHT OF PUBLICITY, MISAPPROPRIATION OR MISUSE OF IMAGE, AND/OR DEFAMATION. THIS RELEASE SHALL BE BINDING UPON ME, MY ESTATE, MY INSURERS, MY HEIRS, LEGAL REPRESENTATIVES, AND ASSIGNS.

THIS AGREEMENT IS BEING MADE AND ENTERED INTO UNDER THE LAWS OF THE STATE OF FLORIDA AND SHALL BE GOVERNED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF SAID STATE. THIS AGREEMENT EMBODIES THE ENTIRE AGREEMENT OF THE PARTICIPANT AND PERFECT GAME, AND FULLY SUPERSEDES ALL PRIOR AGREEMENTS BETWEEN THE PARTICIPANT AND PERFECT GAME. TO THE EXTENT ANY INCONSISTENCIES EXIST BETWEEN THIS AGREEMENT AND ANY PREVIOUS AGREEMENT BETWEEN THE PARTICIPANT AND PERFECT GAME, ALL SUCH INCONSISTENCIES SHALL BE RESOLVED PURSUANT TO THIS AGREEMENT. NO MODIFICATION OF THIS AGREEMENT SHALL BE OF ANY EFFECT UNLESS IT IS MADE IN WRITING AND SIGNED BY ALL OF THE PARTIES TO THE AGREEMENT.

IIRC, @sean98, you're an attorney. Thoughts?


Sean98
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I am, but I don't actively practice, don't know much about this type of law, and know nothing about Florida law (which is the presumptive law for any disagreements here).

With all that said, and understanding THIS IS NOT LEGAL ADVICE... It seems awful one-sided to me. Appears you're giving up everything and getting nothing in return. I don't know the future ramifications. It could be argued this applies only to PG events and materials - but if they have a partnership with Fanatics, and Fanatics has a deal with MLB does it extend that far??

If you feel your kid has a real future, then I would suggest you at least get a legit legal consultation from someone in this area of law before I sign that one-sided of a release.
TarponChaser
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Part of the issue is that, the way I understand it, if you sign this release for your kid at 8 to play in a PG tournament then you're hosed forever.
BMX Bandit
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This only gives them NIL rights to photos taken at PG events. PG owns the copyrights to any photos, they added this language to protect against players trying to get around that by claiming their right to publicity is being infringed.

It has no bearing on a players ability to sell his NIL in the future.

When you go to a professional sporting event,
You were granting them the same license to use your NIL
austinag1997
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I don't know how they can bind you for any future events. That sounds over the top.
AggieGunslinger
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BMX, this is how I read it after I looked into it more, it makes me feel better to hear an attorney say it, though I won't construe it as legal advice, . It won't stop our kids from signing NIL deals when they get to A&M (good lord willing); it is just that PG can use their NIL for free, but only what PG was able to grab when they played PG tournaments. This has been the same release we have been signing to play PG tournaments for years; if they were going to use players NIL for free, why do I not see a bunch of stuff from them about the current young stars in the bigs and college? Surely, Charlie Condon or Jace played in a PG tournament or two over the years.

Now, if your kids get to Select Fest or one of the big 16/17u exclusive tournaments they may be demanding more rights.

AggieGunslinger
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austinag1997 said:

I don't know how they can bind you for any future events. That sounds over the top.
That is probably why they have you sign one every year.

We have been playing more Five Tool tournaments this year and have enjoyed them; they do a bunch of the player recognition stuff that the kids like but don't (haven't yet) put a big emphasis on ranking everything the kids do.
OnlyForNow
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I would as well, but I doubt he chimes in since, I believe, he has a relationship with 12, which I think is a competitor.
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