Authored by: Joshua P. Astin
Name, Image, and Likeness (NIL) contracts have become a significant part of the college sports landscape. While these deals offer exciting opportunities, it’s crucial for student-athletes to understand the potential complexities before signing on the dotted line. A poorly negotiated contract can have significant consequences, impacting both immediate and future earnings potential.
This guide highlights key areas student-athletes should carefully consider when reviewing an NIL contract:
- Compliance with School and State Regulations:
First and foremost, ensure the contract aligns with your institution’s NIL policy and any applicable state laws. Regulations vary, with some states prohibiting endorsements related to certain industries like cannabis, mobile gaming, or gambling. Your school may also have restrictions, such as prohibitions on partnerships with competitors of their official sponsors. Ignoring these rules could jeopardize your eligibility.
- Pay-for-Play Prohibition:
The NCAA strictly prohibits pay-for-play agreements. While seemingly straightforward, some contracts may contain cleverly disguised clauses that violate this rule. For instance, performance-based incentives tied directly to athletic achievements could be considered pay-for-play. Be wary of any agreement structuring compensation around on-field performance.
- Protecting Your Right of Publicity:
Your right of publicity grants you control over the commercial use of your NIL and the ability to sign multiple deals with non-competitive businesses. Be extremely cautious of contracts that assign this right to a business. Such agreements can severely limit your future earning potential by granting the business control over your endorsements and likeness. Negotiate to retain this right or consider walking away from deals that demand its transfer.
- Seeking Legal Counsel:
Every NIL contract is unique. The best way to protect yourself is to consult with an attorney specializing in NIL agreements. Don’t hesitate to seek expert advice; it’s an investment in your future.
Navigating the complexities of NIL contracts requires expert guidance. Woodard, Emhardt, Henry, Reeves, and Wagner LLP, with a history spanning over a century, offers a dedicated NIL practice group to assist student-athletes in making informed decisions. Our deep expertise in intellectual property law, including protecting brand rights and navigating the intricacies of licensing agreements, makes us uniquely positioned to help you secure favorable NIL deals while safeguarding your long-term interests. Contact our NIL team today for a consultation and ensure you’re maximizing your opportunities while protecting your NIL rights.