Given that the 2026 FIFA World Cup will be hosted in North America, and some games will be played in Miami, the inevitable rise in disputes leading up to and occurring as a result of the FIFA World Cup could result in the arbitrations for those disputes to be held in Miami.
By Stephanie Reed Traband and Ira Gonzalez, McCarter & English LLP
May 12, 2025
It is an exciting time to be a sports arbitrator or practitioner in Miami. The Federation Internationale de Football Association (FIFA) has moved its legal headquarters to the area, making its new home in Coral Gables. And, with Miami as the home for so many collegiate and high school athletes, the burgeoning opportunities for name, image, and likeness (NIL) deals seems limitless. But what exactly could that mean for Miami and arbitration? Miami has the potential to join Lausanne, Switzerland and Paris, France, as an international seat for sports arbitration.
As practitioners know, the determination of the seat of an arbitration is often one of the most critical and negotiated points in an arbitration contract—perhaps as important as the choice of law. Miami has long been an attractive venue for arbitrations involving Latin American countries and companies, but now, with FIFA’s decision to locate its legal and compliance teams to the region, this will likely lead to Miami being selected as the location for some FIFA arbitrations. Generally, FIFA contracts specify that any disputes will be resolved through the Court of Arbitration for Sport, which is headquartered in Lausanne, but CAS Rule 28 allows the parties to request a hearing in other locations, if the circumstances warrant. Given that the 2026 FIFA World Cup will be hosted in North America, and some games will be played in Miami, the inevitable rise in disputes leading up to and occurring as a result of the FIFA World Cup could result in the arbitrations for those disputes to be held in Miami.
Further, avid sports fans are likely aware that NIL deals are reshaping the face, quite literally, of college sports, stemming from the House v. NCAA litigation. This lawsuit, which is one among others, involves a class action antitrust case, challenges the NCAA’s restrictions on the ability of college athletes to earn compensation for the use of their NIL. The proposed settlement in House represents a monumental shift in college athletics, paving the way for direct institutional payments to athletes for NIL, and provides a revenue-sharing model. While significant details are still emerging and court approval is pending, these changes will likely have a profound impact on student-athletes, universities, and the broader landscape of college sports. Historically, high school and college athletes were considered amateurs and not professionals. Thus, NCAA rules restricted college athletes from profiting from the use of their NILs.
Some of the key aspects of the proposed settlement and its impact on NIL include:
- Direct Payments From Schools to Athletes: For the first time, NCAA rules will permit schools to directly provide financial payments to student-athletes, including for the use of their NIL.
- Revenue Sharing: A framework for revenue sharing will be established, allowing schools to distribute a portion of their revenue (from media rights, ticket sales and sponsorships) to athletes. The initial cap for this sharing is estimated at $20.5 million per school annually, with potential increases over time. NIL payments made directly by the school to athletes will likely count toward this cap.
- Back-Pay for Former Athletes: The settlement includes a provision for approximately $2.8 billion in back payments to former Division I athletes who competed between 2016 and 2024 and were previously restricted from earning NIL compensation.
- Third-Party NIL Deals: Athletes will still be allowed to pursue NIL deals with third parties (e.g., brands, collectives). However, a new enforcement and oversight program is expected to be implemented, which may include mandatory reporting and a clearinghouse to review the fair market value of these deals, particularly those exceeding $600.
- Potential Impact on Recruiting: The ability of schools to directly compensate athletes for NIL could become a factor in recruiting, although existing rules still prohibit “pay-for-play” arrangements where compensation is solely based on athletic performance.
- Roster Limits and Scholarships: The settlement is tied to changes in roster limits for various sports, replacing scholarship limitations with overall roster caps. While schools may now offer more scholarships, the total number of athletes on a team could decrease, potentially impacting walk-on players.
- Enforcement: A new enforcement entity, separate from the NCAA’s traditional enforcement arm, is expected to be created to oversee compliance with the settlement terms, including NIL deals and revenue sharing.
It is critical for the parties to create well-structured agreements, including dispute resolution clauses. And this is where arbitration—and potentially Miami—come into play. Since the students have only a limited window of eligibility, the NIL deals will by necessity be of limited duration and the parties will want to resolve any disputes surrounding the interpretation, execution, or termination of those agreements as expeditiously as possible. Not only should the NIL contracting parties include a dispute resolution clause as a matter of course, but arbitration is particularly attractive here, as it offers the parties a combination of confidentiality and speed that would not be available if these cases were litigated in court. Note that the preliminarily approved House settlement does create an opportunity for student athletes who have yet to enroll in college to file an objection to the settlement in the next 10 years, upon matriculating to college.
Given the current legal landscape, parties arranging NIL deals should include arbitration provisions in their agreements. In recognition of the growing trend of NIL deals, the American Arbitration Association (AAA) has already published Due Process Guidelines for the Arbitration of Disputes over Sports Participation and Name, Image, and Likeness, which serves as a great resource for those drafting arbitration clauses in NIL contracts.
By following the AAA guidelines in the event of an NIL conflict, parties could avail themselves not only of arbitration generally, but also perhaps even its expedited procedures in some instances. And, by selecting arbitration, the parties afford themselves the ability to select an arbitration panel specialized in sports-related matters, and, in fact, the AAA created a panel of sports arbitrators, a collection of arbitrators with experience in both sports law and NIL matters, for this purpose.
Miami and South Florida are home to many universities and high schools with very successful athletics programs. As the athletes in these programs continue to excel, it is not only likely, but probable, that many of Florida’s athletes will be offered NIL deals. It is also likely that disputes will flow from those deals, no matter how well the contracts are drafted. Fortunately, Florida is well-positioned to be the home base of these arbitrations, so while it’s always good to be a sports fan in Miami, now it’s also a great time to be a sports law practitioner or arbitrator in the Sunshine state too.
Ira J. Gonzalez is the co-managing partner of McCarter & English’s Miami office. He is a seasoned litigator and member of the firm’s sports & entertainment practice group, and was recently invited to serve as a panelist for the Florida House of Representatives’ Combined Workgroup on Collegiate Name, Image and Likeness (NIL). He can be reached at igonzalez@mccarter.com.
Stephanie Reed Traband is a Miami-based partner with the firm, and has more than 25 years’ experience representing clients in domestic and international disputes and arbitrations. She also serves as a panel arbitrator for the American Arbitration Association and is a Florida Supreme Court-qualified arbitrator. She can be reached at straband@mccarter.com.
Reprinted with permission from the May 12, 2025 edition of “Daily Business Review” © 2025 ALM Global Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or reprints@alm.com. “