How do sports organizations manage legal risk off the field?

Aaron Hernandez

Assistant Dean, Executive Director of Allan Bud Selig Sports Law and Business Program

Aaron Hernandez is ASU Law’s Assistant Dean and Executive Director of the Allan “Bud” Selig Sports Law and Business Program, overseeing strategy, operations and student success. He previously served as the NCAA’s Associate Director of Football.

When fans think about risk in sports, they usually focus on injuries or split-second decisions on the field. Inside sports organizations, however, some of the most significant risks happen far from game day. Contracts, representation, compliance and governance decisions all carry legal consequences that can shape careers, brands and entire organizations.

That reality is why ASU Law designed the Allan “Bud” Selig Master of Sports Law and Business (MSLB) program. Today’s sports industry needs professionals who understand how legal principles quietly influence business strategy – and how to manage risk before it becomes a headline.

What legal risks do sports organizations face beyond game day?

Sports organizations operate as sophisticated businesses with layered legal responsibilities. Risk often arises not from misconduct, but from complexity. Common off-the-field legal risk areas include:

• Contracts and authority, including who has the power to negotiate and bind the organization
• Agency and representation relationships, involving athletes, agents and third-party advisors
• Employment and labor issues, from workplace compliance to collective bargaining obligations
• Name, image and likeness (NIL) compliance, particularly in college athletics and evolving regulatory environments
• Compliance and governance, across league rules, NCAA requirements and internal policies
• Intellectual property and brand protection, including licensing, sponsorships and media rights

Why do agency relationships create unique legal exposure?

Agency law plays a central role in sports, even when it is not obvious. Agents, executives and representatives often act on behalf of athletes or organizations, and those actions can legally bind the principal.

Legal exposure arises when authority is unclear or exceeded. Fiduciary duties – including loyalty, care and disclosure – also matter. Conflicts of interest, undisclosed relationships or misaligned incentives can expose organizations to liability and reputational harm.

Understanding agency law helps sports organizations manage representation relationships responsibly and avoid disputes before they escalate.

How do regulation and enforcement shape risk management in sports?

Sports law operates across overlapping systems. State laws, federal statutes, and league or union regulations often apply at the same time. Athlete representation, for example, may be governed by state registration requirements, federal consumer protection rules and league certification standards.

Effective risk management means anticipating how decisions will be evaluated by regulators, leagues and the public – not just whether a deal is profitable or popular.

How does ASU Law prepare professionals to manage legal risk in sports?

At ASU Law, the Allan “Bud” Selig Master of Sports Law and Business is designed around the realities of modern sports organizations. It is the only law program in the U.S. that combines sports, law and business into one comprehensive degree program. For students interested in becoming practicing attorneys within the sports industry, ASU Law also offers a concurrent JD/MSLB degree pathway.

Students gain practical exposure to agency law, contracts, compliance and governance through coursework taught by industry professionals who have navigated these challenges in real-world sports settings. Graduates leave with the legal literacy to collaborate with attorneys, executives and compliance teams, helping organizations manage risk while still advancing their business goals.

Off-the-field decisions increasingly define success in sports. Knowing how to manage legal risk is no longer a niche skill – it is essential leadership knowledge.