I recently joined Quora to answer Sports Law, Business Law and Sports Business questions. I will turn some of these questions into longer, more in-depth, blog posts, but many of my answers wont reach the blog. You can give my profile a follow here: http://www.quora.com/Roger-R-Quiles-Esq

I answered my first question last night, which asked "Can college athletes be paid a salary?"   

While you're on Quora, feel free to peruse the other interesting questions, or post your own! If there are any topics you would like me to answer, feel free to send me an email or leave it in the comments. 

I'm looking forward to sharing my knowledge with the Quora community!

Many of the Founders I have met with have asked me about New York State's Start-Up NY program. The program is fairly new and could offer some companies a significant tax savings should they found/move/expand their company to designated zones within the State and partner with a designated University in the area. However, the program has many limitations. For instance, many businesses are ineligible for the program, including:

• Retail and wholesale businesses
• Restaurants
• Law and accounting firms
• Medical or dental practices
• Real estate management companies/brokers
• Hospitality
• Retail banking
• Utilities and energy production businesses

It should be noted that because the program is fairly new, there is limited information on its efficacy, or lack thereof. However, the program is worth keeping an eye on as it grows over time. 

For comprehensive information about Start-Up NY, how to apply, and to find out if the program is right for your business, click here: http://startup.ny.gov/ 

Crowdfunding has been a popular platform for start-ups and small businesses to raise money on the internet. Given the success of crowdfunding platforms, such as Kickstarter, and the costs of playing sports, it was only a matter of time before platforms were introduced solely directed at crowdfunding athletes.  Now, several platforms for crowdfunding athletes exist, including:

• RallyMe
• Sportfunder
• Pursu.it
• MakeAChamp
• Sqor (Here is an interesting article about Sqor)

These platforms allow athletes, teams and organizations to raise money for specific sports-related goals, like funding an athlete's trip to a competition, a professional athlete's charity, or helping to fund organizations who represent their countries in the Olympics. 

Although these crowdfunding platforms can be vital for organizations, olympians, professional athletes, or some amateur athletes, crowdfunding is an attractive and potentially unknown danger for athletes with collegiate eligibility. 

NCAA Bylaw 12.01.1 states that "Only an amateur student-athlete is eligible for intercollegiate athletics participation in a particular sport." However, Bylaw 2.9, the NCAA's core principle of amateurism, states "student-athletes should be protected from exploitation by professional and 
commercial enterprises." Although the NCAA's definition of amateurism has shifted over the years, receiving any form of compensation (including having something paid for) has been violative of the NCAA's amateurism principles, and has resulted in fines as well the loss of athletic eligibility. For example, Georgia running back Todd Gurley is currently suspended pending investigation into whether he received payment for autographs. 

With the increasing prevalence of costly training camps and showcases for young athletes, meaning those who are not yet college eligible, it is easy to see how crowdfunding can be an attractive means of funding attendance at training camps and showcases. Although young athletes may be aware that they cannot be "paid," crowdfunding raises the following questions:

• Will young athletes recognize crowdfunding as being paid to play or train?
• Are parents aware that their kids cannot be paid to play?
• If so, will parents recognize crowdfunding as being paid to play?
• Will young athletes be disciplined, upon acceptance to a college team, for any violations their parents commit in support of them?
• Should athlete crowdfunding websites have any legal responsibility to protect eligibility?

Young athletes and their parents, assuming they are aware that athletes cannot receive compensation, may not inherently view crowdfunding to attend specific events as compensation. Taking a simplistic view, the young athletes and their parents may assume that the rule barring payment prohibits salary-like payments for on field performance. Therefore, those athletes and parents may believe that crowdfunding for a specific event is not violative of NCAA regulations.

This dangerous assumption could be problematic when the young athlete attempts to play in college. Should the NCAA become aware of previous crowdfunding, the player could be fined an amount equal to the funding received and/or suspended. Such a fine could be prohibitive to a college athlete if they used the crowdfunding service several times. 

Potentially, the NCAA could hold the young athlete accountable for his or her parents' crowdfunding in support of their athletic endeavors. The NCAA's prohibition against players receiving extra benefits also extends to their parents. The NCAA's investigation into Reggie Bush and his family is a good example of this, although the investigation took place after he turned pro. 

While attending USC, Bush's family rented a home from Michael Michaels, who at the time was establishing a sports agency that hoped to sign Bush. Throughout their time in the house (approximately a year) Michaels provided multiple impermissible extra benefits and inducements, including rent free housing, transportation, and money to pay off debts. Although it was alleged that Bush was aware of Michaels providing the benefits to his family (under the purported agreement that he would repay Michaels when he turned pro), Bush's knowledge was immaterial as parents are also prohibited from receiving extra benefits and inducements. The NCAA found multiple violations to have taken place (including violations not mentioned here), and retroactively sanctioned Bush, as he was now a pro player. Bush's experience should serve as a cautionary tale to crowdfunding parents, as an athlete can be sanctioned for their parents' actions as they relate to the athlete. 

Lastly, there is a question of whether athlete crowdfunding sites should be responsible in some way for the potential repercussions of athletes utilizing their service. Although there is little, if any, legal recourse against such a site for an athlete unknowingly committing NCAA violations, there is no question that the websites should include a warning regarding college eligibility when signing up for the service, especially if the websites are hosted domestically. That warning should not be buried in their terms of service agreement, but should be explicit. If these sites are truly supporting the advancement of athletes, then they should seek to protect their aspirations by at least providing a warning. 

Of course, crowdfunding for athletes is only problematic from an NCAA perspective if the user plays an NCAA sport. For those that don't play such sports, crowdfunding could be instrumental to their amateur and/or professional career. It is unfortunate that NCAA regulations would stand in the way of future NCAA athletes going to specialized camps, or showcasing their abilities, that will help them reach the next level. However, it makes sense. Allowing crowdfunding for future college athletes would create a vehicle by which highly touted young athletes could be financially swayed by colleges, professional teams, and agents. Such inducements are not only banned by the NCAA, but also the professional sports leagues. 

Crowdfunding can be positive for many athletes, just not those athletes who plan on playing in the NCAA.

This past Sunday I appeared on Law and Batting Order for a Live Q&A on the state of the NCAA. The discussion included:

• Jameis Winston's investigation by Florida State for sexual assault
• Todd Gurley's suspension from the University of Georgia's football team for being paid for autographs
• The NCAA's lawsuit against the State of Pennsylvania over legislation regarding the $60 Million fine resulting from the Penn State/Jerry Sandusky scandal
• Brady Hoke's decision to leave Quarterback Shane Morris in the game after an apparent head injury on the field

If you have never seen a Law and Batting Order podcast, its worth checking out. The Sports Law topics are timely and the content is always informative. I truly enjoyed taking part in the Q&A. Here it is: 

Last week, my blog post regarding equity for endorsements focused on the benefits and disadvantages of the athlete/celebrity endorser. This post will focus on the companies, and why they should or shouldn't offer equity for endorsements.

Startups have long sought celebrity endorsements under the misguided notion that the endorsement will equate to the company's success by harnessing the celebrity's star power. In fact, there are many articles on how to attract celebrity endorsers (See here and here) Not surprisingly, offering equity for endorsements is a common suggestion on these "How To" articles. But, companies should be mindful of how they distribute their equity, as a celebrity endorsement does not always work out well for the company (see here). 

Benefits

• Does not require available cash- Many startups are strapped for cash during their first few years, and few can afford the high prices of celebrity endorsements for money. Offering equity for celebrity endorsements may be the only way the company can secure such an endorsement. 
• Potential synergy- A well selected celebrity endorsement will create a synergy between the company and/or its products with the celebrity, allowing the endorsement to come across naturally and potentially harness the endorser's fan base. This could lead to greater sales figures.
• Perceived credibility- Let's face it. Customers are more likely to attribute credibility to a company that is endorsed by a celebrity they "trust." 

In sum, all of the benefits of getting endorsements for equity necessitate sales increases and discount the loss of equity.

Disadvantages

• Being tied to the celebrity- Giving equity for celebrity endorsements, and the extensive marketing campaign required to utilize the celebrity endorsement, ties the company to the celebrity for better or worse. Should the celebrity become embroiled in a scandal, or engage in some manner which hurts their image, the company could also be damaged through its association with the endorser (unless the endorsement agreement contains a well-drafted morals clause). 
• Divestiture- Equity for endorsement deals are investments to the celebrities, which can eventually be cashed in. Granted, a well drafted endorsement for equity agreement will have provisions as to how and when the endorser can divest their equity, the sale of the stock can occur at a bad time for the business, ultimately damaging it.
• Less equity can be used for other purposes- By offering equity for endorsements, the company is limiting the amount of equity it can distribute to other channels, which may be more beneficial. For instance, companies can offer equity to woo experienced employees or for venture capital funding. Granted, both of those equity offers have their own benefits and disadvantages, each company is unique, and may be better served by using the equity they would exchange for celebrity endorsements in a different manner. 
• Risk- Although some companies have found success with celebrity endorsements, not all celebrity endorsements result in a financial boon for the company. Further, should the celebrity breach their endorsement agreement in some way, the litigation costs could quickly mount for a cash-strapped startup. 

Equity should be carefully guarded by a company, especially a startup, because there is a limited amount to distribute. Some founders may wish to distribute as little equity as possible, and/or retain a greater amount of equity for themselves. Before agreeing to anything for equity, especially endorsements, the proposed agreement should be carefully vetted to determine if it fits with the company's plan moving forward.