PUBLISHED

UNITED STATES COURT OF APPEALS

FOR THE FOURTH CIRCUIT

No. 22-1793

ZION WILLIAMSON,

Plaintiff − Appellee,

v.

PRIME SPORTS MARKETING, LLC; GINA FORD,

Defendants – Appellants.

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NATIONAL BASKETBALL PLAYERS ASSOCIATION,

 Amicus Supporting Appellee.

No. 22-1946

ZION WILLIAMSON,

Plaintiff − Appellee,

v.

PRIME SPORTS MARKETING, LLC; GINA FORD,

Defendants – Appellants.

------------------------------

NATIONAL BASKETBALL PLAYERS ASSOCIATION,

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 Amicus Supporting Appellee.

Appeal from the United States District Court for the Middle District of North Carolina, at 

Greensboro. Loretta C. Biggs, District Judge. (1:19−cv−00593−LCB−JLW)

Argued: October 24, 2023 Decided: May 6, 2024

Before DIAZ, Chief Judge, TRAXLER, Senior Circuit Judge, and Jamar K. WALKER, 

United States District Judge for the Eastern District of Virginia, sitting by designation.

Affirmed by published opinion. Chief Judge Diaz wrote the opinion, in which Judge 

Traxler and Judge Walker joined. 

ARGUED: Douglas Frederic Eaton, EATON & WOLK PL, Miami, Florida, for 

Appellants. Zachary D. Tripp, WEIL, GOTSHAL & MANGES, LLP, Washington, D.C., 

for Appellee. ON BRIEF: Jeffrey S. Klein, CLARICK GUERON REISBAUM LLP, New 

York, New York; Lauren E. Richards, LOEB & LOEB LLP, New York, New York; John R. 

Wester, Fitz E. Barringer, ROBINSON, BRADSHAW & HINSON, P.A., Charlotte, North 

Carolina; Robert B. Niles-Weed, Zachary A. Schreiber, WEIL, GOTSHAL & MANGES, 

LLP, New York, New York, for Appellee. Ronald E. Klempner, NATIONAL 

BASKETBALL PLAYERS ASSOCIATION, New York, New York; Nicole A. Saharsky, 

Minh Nguyen-Dang, Erik P. Fredericksen, MAYER BROWN LLP, Washington, D.C., for 

Amicus Curiae.

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DIAZ, Chief Judge:

In this case, we interpret the North Carolina Uniform Athlete Agents Act, which 

governs contracts between student-athletes and their agents. Prime Sports Marketing, 

LLC, and Gina Ford1 argue that their former client, Zion Williamson, wasn’t a “studentathlete” when he contracted with them, so he can’t benefit from the Act’s protections. 

The district court rejected that argument. It also granted summary judgment to 

Williamson on Prime’s contract and tort claims.

Because Williamson was engaged in an intercollegiate sport while on the Duke 

University men’s basketball team, and was thus a “student-athlete,” we agree with the 

district court that Prime’s failure to comply with the Act’s requirements voided the 

contract. We also affirm the district court’s grant of summary judgment on Prime’s

contract and tort claims.

I.

 A.

When he enrolled at Duke University, Zion Williamson was one of the most 

prominent young stars in basketball. As a freshman on the Duke men’s basketball team, 

Williamson was named Atlantic Coast Conference (ACC) Player of the Year and led Duke 

to the ACC Championship. At the end of his first season, Williamson entered the NBA 

draft, where he was selected by the New Orleans Pelicans as the number one overall pick. 

1 We refer to Ford and Prime collectively as Prime.

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Williamson’s talents generated interest not just from basketball fans, but from 

agents eager to represent him. During his freshman year, Williamson began to 

communicate with Gina Ford, a marketing agent and Prime’s president. Ford met with 

Williamson and his mother and stepfather several times to discuss Prime representing 

Williamson as his marketing agent when he turned pro. 

After Williamson played his last game at Duke (but before being drafted), he hired

Prime as his marketing agent. Under the agreement, the parties could terminate the contract 

only after five years, and then, only for cause.

For a few weeks, all seemed well. Ford secured a cover shoot and article about 

Williamson for Slam Magazine. She also sent Williamson two “Partnership Summaries,” 

which contained a compilation of one-page offers purportedly made to Williamson by 

various companies, J.A. 1849–97, 1965, as well as a “Brand Management Strategy,” which 

discussed Williamson’s brand and identified “potential brand partnerships,” J.A. 1426–45. 

But the day after receiving the strategy document, Williamson’s mother and 

stepfather told Ford that Williamson was terminating the Prime contract and instructed her 

to stop negotiating with third parties on Williamson’s behalf. Unbeknownst to Ford, 

Williamson’s parents also forwarded the strategy document and Partnership Summaries to 

agents from Creative Artists Agency (“CAA”), a competitor agency that Williamson had 

retained as his player agent.

2

 

2 A player agent helps an athlete negotiate his playing contract. A marketing agent

(like Prime) helps an athlete develop his “brand” through endorsements and other 

marketing opportunities. 

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On May 31, 2019, Williamson emailed Ford to formally terminate the contract. 

That same day, Williamson signed a marketing contract with CAA. CAA later negotiated 

partnerships for Williamson with many of the same companies identified in Prime’s 

partnership summaries. 

B. 

On June 2, 2019, Williamson’s attorney sent a preemptive cease-and-desist letter to 

Prime. The letter stated that the Prime contract was void under the North Carolina Uniform 

Athlete Agents Act, N.C. Gen. Stat. § 78C-85 et seq.

Williamson alleged that the contract violated two provisions of the Act, which made 

it unenforceable. First, with two exceptions not relevant here, an agent seeking to contract 

with a student-athlete must register as an agent with the North Carolina Secretary of State. 

N.C. Gen. Stat. § 78C-88(a). If an agent fails to register, any agency contract the agent 

makes with a student-athlete is void. N.C. Gen. Stat. § 78C-88(d). Williamson claimed 

that because Ford never registered as an agent in North Carolina, the Prime contract was 

void. 

Second, the contract must contain, “in close proximity to the signature of the 

student-athlete,” a notice in boldface type and capital letters that states:

WARNING TO STUDENT-ATHLETE 

IF YOU SIGN THIS CONTRACT: 

(1) YOU SHALL LOSE YOUR ELIGIBILITY TO COMPETE AS A 

STUDENT-ATHLETE IN YOUR SPORT; 

(2) IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72 HOURS 

AFTER ENTERING INTO THIS CONTRACT, BOTH YOU AND 

YOUR ATHLETE AGENT MUST NOTIFY YOUR ATHLETIC 

DIRECTOR; 

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(3) YOU WAIVE YOUR ATTORNEY-CLIENT PRIVILEGE WITH 

RESPECT TO THIS CONTRACT AND CERTAIN INFORMATION 

RELATED TO IT; AND 

(4) YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS 

AFTER SIGNING IT. CANCELLATION OF THIS CONTRACT 

SHALL NOT REINSTATE YOUR ELIGIBILITY.

N.C. Gen. Stat. § 78C-94(c). 

An agency contract lacking this exact warning is voidable by the student-athlete. 

N.C. Gen. Stat. § 78C-94(d). The Prime contract didn’t contain this notice, so Williamson 

stated that, even if the contract weren’t void under the registration requirement, he was 

voiding the contract on this ground.

Prime responded that the Act didn’t apply to the contract because Williamson 

wasn’t a “student-athlete,” as defined by the Act, when he signed it. See N.C. Gen. Stat. § 

78C-86(11).

Williamson then sued Prime in federal court, invoking the court’s diversity 

jurisdiction. He sought a declaratory judgment that Prime’s violations of the Act voided

the Prime contract. He also claimed that Prime violated North Carolina’s Unfair and 

Deceptive Trade Practices Act, N.C. Gen. Stat § 75-1 et seq., (“UDTPA”) and that Prime 

fraudulently induced him to contract. 

After the district court denied its motion to dismiss, Prime answered the complaint 

and counterclaimed. As relevant here, Prime raised a breach of contract claim and two 

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related contract claims. It also claimed that Williamson misappropriated its trade secrets 

and acquired its marketing materials by making fraudulent representations.3

Williamson moved for partial judgment on the pleadings on his declaratory 

judgment claim. In response, Prime conceded that Ford never registered as an agent nor 

included the requisite warning in the Prime contract. But it argued that Williamson wasn’t 

a “student-athlete” under the Act because he allegedly violated National Collegiate Athletic 

Association (NCAA) rules, and those violations made him “permanently ineligible” to play 

college basketball. See N.C. Gen. Stat. § 78C-86(11). 

Under the Act, a player who is “permanently ineligible” to compete in 

intercollegiate sports isn’t a “student-athlete” entitled to the Act’s protections. Id. 

Williamson disputed that he violated NCAA rules and argued that even if he did, those 

violations wouldn’t impact whether he was a “student-athlete” under the Act. Prime then 

moved to supplement its response with more evidence of Williamson’s alleged 

wrongdoing. 

The district court denied Prime’s motion to supplement and granted Williamson’s 

motion for partial judgment on the pleadings. Williamson v. Prime Sports Mktg., LLC, No. 

1:19-cv-593, 2021 WL 201255, at *9 (M.D.N.C. Jan. 20, 2021). It held that Williamson 

was a student-athlete when he signed the Prime contract, and that Prime’s allegations that 

Williamson violated NCAA regulations didn’t create “a genuine issue of material fact as 

3 Prime raised eleven counterclaims in total, only some of which are relevant to this 

appeal.

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to whether Plaintiff had been deemed permanently ineligible during the time period in 

question.” Id. at *8. And it concluded that supplementing Prime’s response with more 

evidence of Williamson’s misconduct would be futile. Id. at *4.

After the district court entered judgment for Williamson, Prime filed four related 

motions seeking to amend, reconsider, or vacate the court’s judgment. Prime also moved 

to amend its pleadings. The district court denied these motions. Williamson v. Prime 

Sports Mktg., LLC, No. 1:19-cv-593, 2021 WL 4193343, at *9 (M.D.N.C. Sept. 15, 2021). 

Following discovery, the parties filed cross motions for summary judgment on 

Prime’s counterclaims. The district court granted Williamson’s motion and denied 

Prime’s, holding that Prime’s violations of the Act barred its contract claims. Williamson 

v. Prime Sports Mktg., LLC, No. 1:19-cv-593, 2022 WL 2802611, at *3–4, *12 (M.D.N.C. 

July 18, 2022). It also held that Williamson was entitled to summary judgment on Prime’s 

fraud, misappropriation of trade secrets, and related claims because Prime failed to 

establish essential elements of those claims. Id. at *4–9. Williamson voluntarily dismissed 

his UDTPA and fraudulent inducement claims, and the court entered final judgment. 

Prime now appeals (1) the grant of Williamson’s motion for judgment on the 

pleadings; (2) the denial of its motion for leave to amend; and (3) the grant of summary 

judgment for Williamson on its counterclaims. 

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II.

A.

We begin with Prime’s appeal of the district court’s grant of judgment on the 

pleadings, which we review de novo. Burbach Broad. Co. of Del. v. Elkins Radio Corp., 

278 F.3d 401, 405–06 (4th Cir. 2002). We take all reasonable factual inferences in favor 

of Prime, as the non-moving party. Id.

Prime’s appeal centers on one question: Who is a student-athlete subject to the Act? 

Because North Carolina law is silent on this question, we must anticipate how the Supreme 

Court of North Carolina would rule. Stahle v. CTS Corp., 817 F.3d 96, 100 (4th Cir. 2016). 

And to do that, we must interpret the statute as North Carolina’s high court would, using 

its tools of statutory construction. Whitmire v. S. Farm Bureau Life Ins. Co., 52 F.4th 153, 

158 (4th Cir. 2022).

“Under North Carolina law, ‘the goal of statutory interpretation is to determine the 

meaning that the legislature intended upon the statute’s enactment.’” Id. (quoting State v. 

Rankin, 821 S.E.2d 787, 792 (N.C. 2018)). We start by examining the plain language of 

the statute. Rankin, 821 S.E.2d at 792. “When the language of a statute is clear and without 

ambiguity,” we must “give effect to the [statute’s] plain meaning.” Diaz v. Div. of Soc. 

Servs., 628 S.E.2d 1, 3 (N.C. 2006) (cleaned up). And we must consider the text “within 

the context of the statute, rather than in isolation.” Farm Lab. Org. Comm. v. Stein, 56 

F.4th 339, 346 (4th Cir. 2022) (cleaned up). 

Generally, once we determine the plain meaning of a statute’s clear text, our inquiry 

ends. Id. But if the plain language is ambiguous, or seems to contravene legislative intent, 

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we may then examine “the legislative history, the spirit of the act[,] and what the act seeks 

to accomplish.” Rankin, 821 S.E.2d at 792 (cleaned up). 

1. 

We first consider whether Williamson is a “student-athlete” based on the plain 

language of the Act. The Act defines “student-athlete” as:

An individual who engages in, is eligible to engage in, or may be eligible to 

engage in any intercollegiate sport. If an individual is permanently ineligible 

to participate in a particular intercollegiate sport, the individual is not a 

student-athlete for the purposes of that sport.

N.C. Gen. Stat. § 78C-86(11). 

In Prime’s view, Williamson wasn’t a “student-athlete” because he was 

“permanently ineligible,” even though he was “engage[d] in” an intercollegiate sport. In 

other words, it reads the second sentence of the Act’s definition as creating an exception 

to the first. 

But according to Williamson, “the second sentence is not an exception at all.” 

Appellee’s Br. at 27. Instead, the second sentences broadens the statute to include athletes 

engaged in two sports, which he was not. Williamson reasons that if a student isn’t engaged 

in (or eligible to engage in, or potentially eligible to engage in) a “particular intercollegiate 

sport,” then he isn’t a student-athlete for purposes of that sport, but will still be a studentathlete for other sports for which he’s eligible. At the very least, Willamson argues, 

someone who is “permanently ineligible,” by definition, doesn’t “engage in”; isn’t “eligible 

to engage in”; and won’t ever be eligible to engage in an intercollegiate sport. 

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We agree with Williamson. If a student is engaged in an intercollegiate sport when 

he signs an agency contract, he is a student-athlete subject to the Act. The permanent 

ineligibility clause doesn’t apply to Williamson, who was engaged in a single sport. 

In our view, the legislature included the Act’s second definitional sentence of 

“student-athlete” to protect two-sport athletes, and Prime’s interpretation runs contrary to 

that purpose. While the second sentence might suggest that a student-athlete who violates 

NCAA rules can’t benefit from the Act’s protections, that construction works only if we 

ignore the first sentence. As was decidedly not the case with Williamson, an athlete who 

is “permanently ineligible” to compete is, by definition, not “engage[d] in, eligible to 

engage in, or potentially eligible to engage in an intercollegiate sport.” 

To the extent that the statutory language is ambiguous, a principle of statutory 

construction—the presumption against superfluity—lends support for our reading. When 

statutory language is ambiguous and one plausible reading would render another word, 

phrase, or section of the statute unnecessary, the presumption against superfluity tells us to 

adopt the interpretation that does not create any. See State v. Coffey, 444 S.E.2d 431, 417–

18 (N.C. 1994) (stating that a statute should not be interpreted in a manner that would 

render any of its words superfluous). 

Treating the Act’s second sentence as an exception makes it unnecessary because 

the first sentence already encompasses athletes who are permanently ineligible. Put 

differently, if an individual is not engaging in, eligible to engage in, or potentially eligible 

to engage in an intercollegiate sport, then he is permanently ineligible. Prime’s 

interpretation would strip the second sentence of its independent force. 

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We find additional support in the commentary to the Uniform Law Commission’s 

model Athlete Agents Act, on which the North Carolina statute is based. The commentary 

explains: “The definition of ‘student-athlete’ applies to a two-sport athlete who has 

eligibility remaining in one sport. For example, an individual who has signed a contract to 

play professional basketball is not a student-athlete in basketball, but is a student-athlete in 

baseball.” Unif. Athlete Agents Act § 2 & cmt. 

The commentary closely tracks the language of the North Carolina statute, which 

specifies that if a person is ineligible for a “particular intercollegiate sport,” he is not a 

student-athlete in “that sport.” N.C. Gen. Stat. § 78C-86(11) (emphasis added). Had the 

legislature intended to adopt Prime’s meaning, it could have written: “An individual who 

may be ineligible to play an intercollegiate sport is not a student-athlete.” But it didn’t. So 

long as a student-athlete is “engage[d] in” a particular intercollegiate sport (as Williamson 

was), he is a student-athlete under the Act for purposes of that sport.

2. 

Next, Prime argues that a court may analyze the NCAA rules to determine that 

Williamson’s rule violations made him permanently ineligible to compete, even while he 

was engaged an intercollegiate sport. We disagree. 

Williamson and Prime both accept that “permanently ineligible” refers to 

ineligibility under the relevant NCAA regulations. The Act defines “intercollegiate sport” 

as a sport played at the collegiate level, whose “eligibility requirements for participation 

by a student-athlete are established by a national association for the promotion or 

regulation of collegiate athletics.” N.C. Gen. Stat. § 78C-86(6) (emphasis added). So we 

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should look to the eligibility requirements that the relevant national association—here, the

NCAA—has set out to determine whether a student-athlete is “permanently ineligible” to 

compete. 

To participate in an intercollegiate sport, a student-athlete must comply with the 

NCAA’s amateurism rules. Bowen v. Adidas Am. Inc., 84 F.4th 166, 171 (4th Cir. 2023) 

(citing NCAA Bylaw § 12.01.1). Two of those rules are relevant here. 

First, the rules forbid student-athletes and their families from accepting payments 

of any form in exchange for student-athletes’ playing or agreeing to play a sport, with 

limited exceptions. NCAA Bylaw § 12.1.2(a). The rules also forbid a student-athlete from 

entering into an agreement with an unauthorized agent. NCAA Bylaw § 12.1.2(g).4 If a 

student-athlete violates an amateurism rule, the NCAA or a member institution may declare 

him ineligible to play. See NCAA Bylaw § 12.1.2; Bowen, 84 F.4th at 171–72; see 

generally Arlosoroff v. Nat’l Collegiate Athletic Ass’n, 746 F.2d 1019, 1020 (4th Cir. 

1984). 

Prime alleges that Williamson violated both amateurism rules, which made him 

permanently ineligible to compete. But Prime ignores that the NCAA eligibility 

requirements are discretionary. See United States v. Gatto, 986 F.3d 104, 120–21 (2d Cir. 

2021) (recognizing that the NCAA may choose to deem a student-athlete only temporarily 

ineligible). 

4 The rules authorize certain student-athletes to be represented by “NCAA-certified 

agent[s],” though no one claims this exception would apply to Williamson. See NCAA 

Bylaw § 12.3.1.2. 

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Here again, the model Act’s commentary is informative. It explains that “violation 

of eligibility rules adopted by an educational institution or a national association is not 

automatic and does not occur until a determination has been made by the educational 

institution or national association.” Unif. Athlete Agents Act § 10 & cmt. No such 

determination was made here. And without such a determination, a court can’t hypothesize 

that the NCAA would have elected, in its discretion, to declare Williamson permanently 

ineligible because of his alleged rule violations.

In response, Prime points to the Act’s warning language, that an athlete “shall” lose 

his ability to compete if he signs the contract. But that language serves only to trigger 

awareness and emphasize the gravity of the contract. Indeed, the model code and every 

other state that has enacted a similar statute require that the contract state only that an 

athlete “may” or will “likely” lose her ability to compete. 5 Prime’s contrary reading runs 

5 See Unif. Athlete Agents Act § 10; see generally Ala. Code § 8-26B-10(c); Ariz. 

Rev. Stat. Ann. § 15-1770(C); Ark. Code Ann. § 17-16-110(c); Cal. Bus. & Prof. Code § 

18897.73(a); Colo. Rev. Stat. § 23-16-209(c); Del. Code Ann, tit. 24, § 5409(c); D.C. Code 

§ 47-2887.09(c); Fla. Stat. § 468.454(3); Ga. Code Ann. § 43-4A-15(c); Haw. Rev. Stat. § 

481Z-10(c); Idaho Code Ann. § 54-4810(3); Ind. Code § 25-5.2-2-8(c); Iowa Code § 

9A.110(3); Kan. Stat. Ann. § 44-1525(c); Ky. Rev. Stat. Ann. § 164.6917(3); La. Rev. Stat. 

Ann. § 4:423(B)(1)(b); Md. Code Ann., Bus. Reg § 4-409(c); Minn. Stat. § 81A.31(3); 

Miss. Code Ann. § 73-42-19(3); Mo. Rev. Stat. § 436.242(3); Neb. Rev. Stat. § 48-2610(3); 

Nev. Rev. Stat. § 398A.350(3); N.M. Stat. Ann. § 61-14F-10(C); N.Y. Gen. Bus. Law § 

899-h(3); N.D. Cent. Code § 9-15.2-09(3); Ohio Rev. Code Ann. § 4771.02(A)(3); Okla. 

Stat. tit. 70, § 820.10(C); Or. Rev. Stat. § 702.047(3); 5 Pa. Cons. Stat. Ann. § 3510(c); 

R.I. Gen. Laws § 5-74.1-10(c); S.C. Code Ann. § 59-102-100(C); S.D. Codified Laws § 

59-10-10(c); Tenn. Code Ann. § 49-7-2110(c); Tex. Occ. Code Ann. § 2051.204(a)(4); 

Utah Code Ann. § 58-87-301(3); Va. Code Ann. § 54.1-534(C); Wash. Rev. Code § 

19.225.060(3); W. Va. Code § 30-39-10(c); Wis. Stat. § 440.994(3); Wyo. Stat. Ann. § 33-

44-107(c).

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headlong into the Act’s uniformity clause, which instructs courts to give consideration “to 

the need to promote uniformity of the law with respect to its subject matter among states 

that enact it” when “applying and construing” the Act. N.C. Gen. Stat. § 78C-102.

Prime next says that the fact that schools withdraw students from competition while 

they investigate NCAA rule violations is evidence that a student becomes ineligible the 

moment he violates the rules. Otherwise, Prime says, a school would have no incentive to 

do so. Not so. 

For background, if the NCAA determines that a student violated NCAA rules but 

still competed, the NCAA may penalize the school. See, e.g., NCAA Bylaw 19.12. So, to 

avoid that potential liability, a member school may (reasonably) choose to withdraw that

student from competition during its investigation. In that instance, the Act gives a school 

a right of action against a former student-athlete who violates the Act to recover damages 

caused by the school’s “reasonable self-imposed disciplinary action taken to mitigate 

sanctions likely to be imposed by an athletic organization.” N.C. Gen. Stat. § 78C-100(a)–

(b). 

Prime says that this part of the Act requires a court to determine whether the school’s 

self-imposed disciplinary action was “reasonable,” which necessarily requires the court to 

review the applicable NCAA rules. But that isn’t relevant to whether the student-athlete 

was permanently ineligible, the question Prime asks us to resolve today. Nor would it 

require a court to conclusively determine whether the student-athlete had, in fact, violated 

NCAA rules, just whether the school’s response was “reasonable.”

 

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3.

Prime advances several additional arguments as to why Williamson was ineligible, 

none of which persuade. First, Prime analogizes to other cases that refuse to defer to the 

findings of certain governmental bodies. Appellants’ Br. at 31–33 (collecting cases). But 

those cases are inapt. The Act explicitly contemplates that the NCAA is to set “eligibility 

requirements,” N.C. Gen. Stat. § 78C-86(6), and thus be the final arbiter of a studentathlete’s eligibility while he’s in school. 

And unlike the governmental bodies at issue in the cases Prime points to, the NCAA 

is a voluntary, private association. Under North Carolina law, “courts will not interfere 

with the internal affairs of voluntary associations.” McAdoo v. Univ. of N.C. at Chapel 

Hill, 736 S.E.2d 811, 825 (N.C. Ct. App. 2013) (cleaned up). We don’t know of any case 

in which a court has analyzed the NCAA bylaws to determine whether the NCAA 

hypothetically could have, under its own bylaws, elected to deem a student “permanently 

ineligible” to compete.

We also find Prime’s reliance on United States v. Gatto misplaced. In Gatto, the 

defendants organized a scheme to make improper payments to basketball recruits, in 

violation of NCAA rules. 986 F.3d at 111. Prime highlights several statements in the 

district court’s and Second Circuit’s opinions, where the courts reference that the payments 

made the recruits “ineligible to compete.” See id. at 112, 126; United States v. Gatto, 295 

F. Supp. 3d 336, 339 (S.D.N.Y. 2018) (“Student-athletes who are recruited in violation of 

NCAA rules are ineligible to play.”). 

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But neither court considered whether the athletes were “permanently ineligible” to 

compete under the Act. Indeed, the Second Circuit acknowledged that student-athletes 

may be deemed ineligible “temporarily,” and may even be reinstated after serving 

suspensions. See Gatto, 986 F.3d at 120–21. That statement supports Williamson, not 

Prime. 

Prime curiously points to two state court decisions enforcing penalties against 

agents who failed to register under other states’ versions of the Act. Neither helps Prime.

In Howard v. Mississippi Secretary of State, an agent argued that Mississippi’s 

version of the Act didn’t apply to the student, since the student had purportedly exhausted 

his eligibility to play college basketball (and thus wasn’t a “student-athlete”). 184 So.3d 

295, 300 (Miss. Ct. App. 2015). But the court didn’t consider this argument because the 

agent didn’t make it during the state administrative proceedings. Id. 

Likewise, in Sloane v. Tennessee Department of State, an unregistered agent argued 

that the student wasn’t a “student-athlete” under Tennessee’s version of the Act. No. 

M2019-00126-COA-R3-CV, 2019 WL 4891262, at *6 (Tenn. Ct. App. Oct. 3, 2019). 

Because the agent admitted that he violated the Act before the ALJ, the court rejected his 

defense as “completely without merit.” Id. 

According to Prime, both cases suggest that an agent may raise a student-athlete’s 

“permanent ineligibility” as an affirmative defense. But because both courts found that the 

agent didn’t raise this argument in prior proceedings, neither reached the question of

whether the agent had sufficiently alleged that the student-athlete was “permanently 

ineligible” to compete. 

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We agree with the district court that neither case is relevant or persuasive, since 

neither answers the question Prime asks here: whether a district court may make an initial 

retroactive decision that the NCAA would have, in its discretion, declared a student-athlete

permanently ineligible to compete, while he remained engaged in an intercollegiate sport. 

Considering the statute’s text and history, the answer is “no.”6 

B. 

Now that we’ve determined that the Act applies to the Prime contract, we must 

decide whether the statute voids the contract. It does. 

Prime concedes that Ford wasn’t registered as an agent in North Carolina, and under 

the Act, any agency contract between a student-athlete and an agent who fails to register 

in North Carolina is automatically void. N.C. Gen. Stat. § 78C-88(d). Likewise, it’s 

undisputed that the Prime contract didn’t contain the requisite warnings. So even if the 

contract weren’t already void, Williamson was free to void it, see N.C. Gen. Stat. § 78C94(d), which he did both via email and through counsel. 

Because the contract was void, the district court correctly granted Williamson’s 

motion for judgment on the pleadings. And since we can’t make a retroactive 

6 Our reading also comports with the Act’s purpose. As amicus National Basketball 

Players Association explains, the Act was created to protect student-athletes and 

institutions from unscrupulous agents’ misconduct. See Prefatory Note, Unif. Athlete 

Agents Act (2000) (citing agents’ unethical practices when recruiting students-athletes and 

recognizing the “serious problems for student-athletes and educational institutions” such 

conduct poses); 15 U.S.C. § 7807 (stating that it is the “sense of Congress” that states 

should enact the Act “to protect student athletes and the integrity of amateur sports from 

unscrupulous sports agents”). And the Act applies to all student-athletes, even those who 

intend to leave intercollegiate sports after a single season, like Williamson. See generally 

N.C. Gen. Stat. § 78C-86(11) (defining “student-athlete”). 

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determination about Williamson’s permanent ineligibility to compete, we agree with the 

district court that any motion to amend Prime’s complaint with other evidence of 

Williamson’s rule violations would be futile. See Johnson v. Oroweat Foods Co., 785 F.2d 

503, 509 (4th Cir. 1986) (explaining that while a district court should liberally allow a party 

to amend its pleadings, the court should deny the motion if “the amendment would be 

futile”). 

Finally, since the Prime contract was void, the district court properly granted 

summary judgment to Williamson on Prime’s breach of contract and related contract 

claims. See McDonald v. Bank of N.Y. Mellon Trust Co., Nat’l Ass’n, 816 S.E.2d 861, 

864–85 (N.C. Ct. App. 2018) (recognizing that the “existence of a valid contract” is 

necessary for breach of contract and good faith and fair dealing claims (cleaned up)). 

 

III. 

Prime contends that even if the contract is void, it may still recover in tort for fraud 

and misappropriation of trade secrets. The district court granted summary judgment to 

Williamson on both claims, and we affirm.

A. 

We’ll begin with Prime’s fraud claim. To state a claim for fraud under North

Carolina law, a plaintiff must show “(1) false representation or concealment of material 

fact, (2) reasonably calculated to deceive, (3) made with the intent to deceive, (4) which

does in fact deceive, and (5) result[s] in damage to the injured party.” Harrold v. Dowd,

561 S.E.2d 914, 918 (N.C. Ct. App. 2002) (citing Ragsdale v. Kennedy, 209 S.E.2d 494, 

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500 (N.C. 1974)). A fraud claim may be based on an “affirmative misrepresentation of a 

material fact, or a failure to disclose a material fact relating to a transaction which the 

parties had a duty to disclose.” Harton v. Harton, 344 S.E.2d 117, 119 (N.C. Ct. App. 

1986) (cleaned up). 

Prime alleges that Williamson concealed facts that would have been material to its 

partnership with him, by not disclosing that he planned to send copies of Prime’s marketing 

strategy to CAA. The district court held that Prime didn’t raise the false omission theory 

in its counterclaim, and that it couldn’t “pivot” to a new legal theory at the summary 

judgment stage. We disagree. 

Prime’s counterclaim alleges that Williamson had a “duty to speak” and 

“intentionally concealed the material fact” that he planned to provide Prime’s marketing 

materials to CAA. J.A. 154. So, we may consider this theory on appeal. 

But Prime’s fraud claim is viable only if Williamson had a duty to speak. See 

Harton, 344 S.E.2d at 119. Specifically, Prime must show that (1) there was a fiduciary 

relationship between it and Williamson; (2) Williamson took affirmative steps to conceal 

material facts from Prime; or (3) Williamson “ha[d] knowledge of a latent defect in the 

subject matter of the negotiations about which [Prime was] both ignorant and unable to 

discover through reasonable diligence.” Id. (cleaned up). 

Prime claims that Williamson’s duty to disclose his outside negotiations to Prime 

arose from their fiduciary relationship. As Prime argues, in North Carolina, the principalagent relationship is a fiduciary one, and Williamson and Prime had a principal-agent 

relationship. See Honeycutt v. Farmers & Merchants Bank, 487 S.E.2d 166, 168 (N.C. Ct. 

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App. 1997) (“An agent is a fiduciary with respect to matters within the scope of his 

agency.”). The problem for Prime is that its failure to comply with the Act made any 

principal-agent relationship void, and thus didn’t create a fiduciary duty.

Prime argues that even if no fiduciary duty existed between them, Williamson still 

had a duty to disclose because he took “affirmative steps to conceal material facts from the 

other.” See Godfrey v. Res-Care, Inc., 598 S.E.2d 396, 402 (N.C. Ct. App. 2004). Prime 

says that it’s “undisputed” that Williamson took such steps to conceal his intent to 

terminate Prime and provide its marketing plan to CAA, but it doesn’t elaborate further. 

Appellants’ Br. at 54. 

We aren’t persuaded. Though parties negotiating at arm’s length may have a duty 

to disclose some things, a party has no duty to disclose that he’s negotiating with a third 

party in a commercial transaction. See Comput. Decisions, Inc. v. Rouse Off. Mgmt. of

N.C., Inc., 477 S.E.2d 262, 266 (N.C. Ct. App. 1996). And we decline to enforce any duty 

to disclose, even in an arm’s length negotiation, when the underlying relationship between 

the parties is illegal. 

We thus affirm the district court’s grant of summary judgment on Prime’s fraud 

claim. 

B.

We come now to Prime’s final claim, that Williamson misappropriated its trade 

secrets. The district court held that Prime’s marketing materials weren’t trade secrets. We

agree.

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North Carolina law defines a trade secret as: 

[B]usiness or technical information, including but not limited to a formula, 

pattern, program, device, compilation of information, method, technique, or 

process that:

(a) derives independent actual or potential commercial value from not being 

generally known or readily ascertainable through independent 

development or reverse engineering by persons who can obtain economic 

value from its disclosure or use; and 

(b) is the subject of efforts that are reasonable under the circumstances to 

maintain its secrecy.

N.C. Gen. Stat. § 66-152(3). A plaintiff must specify a trade secret with sufficient 

particularity; simply making “general allegations in sweeping and conclusory statements” 

won’t do. Washburn v. Yadkin Valley Bank & Tr. Co., 660 S.E.2d 577, 585 (N.C. Ct. App. 

2008).

Prime claims that its “marketing materials,” including “a compilation of 

endorsement offers that [Ford] obtained from various brands” were trade secrets. 

Appellants’ Br. at 56. But a trade secret must be more than “a nebulous, potential business 

opportunity, not yet realized, that is being offered by a third-party individual.” RLM 

Commc’ns v. Tuschen, 66 F. Supp. 3d 681, 700 (E.D.N.C. 2014), aff’d, 831 F.3d 190 (4th 

Cir. 2016). 

We think that Prime’s “compilation of endorsement offers,” is too nebulous to 

qualify for trade secret protection. Most of the endorsement offers contain minimal 

information, and many lack concrete offer amounts. A few of the endorsement offers do 

contain offer amounts, commitments, and other contract terms that Prime purportedly 

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negotiated. But looking at the compilation of offers collectively, as Prime does, we can’t 

say that it represents anything more than unrealized invitations to negotiate.

And even if the offers were concrete, Prime’s misappropriation claim fails because 

the offers were “readily ascertainable through independent development.” N.C. Gen. Stat. 

§ 66-152(3). It didn’t matter that Williamson had forwarded the partnership summaries to 

CAA, since the companies described in the summaries independently initiated deals with 

CAA. 

The district court correctly dismissed Prime’s misappropriation of trade secrets 

claim. 

* * *

For these reasons, we affirm the district court’s judgment.

AFFIRMED

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