College athletics has entered a new era. Thanks to Name, Image, and Likeness (NIL) opportunities, student-athletes can now earn income from endorsement deals, sponsorships, social media partnerships, appearances, merchandise, and licensing agreements. For many athletes, NIL represents a life-changing opportunity to build a personal brand while still competing at the collegiate level.
While lucrative and exciting, these opportunities come with legal risk. Many NIL contracts are drafted to protect the interests of brands, agencies, collectives, or sponsors, not necessarily the athlete. Signing the wrong agreement could limit future earnings, create tax liabilities, surrender valuable intellectual property rights, or even affect NCAA and school compliance.
Before signing any NIL agreement, college athletes should understand exactly what they’re agreeing to and have an experienced attorney review the contract.
An NIL contract is a legally binding agreement that allows a college athlete to receive compensation for the commercial use of their name, image, and likeness. Every NIL agreement establishes rights and obligations for both parties, making it critical that athletes understand every provision before signing. These agreements can involve:
The most obvious provision is how and when you get paid. Some NIL agreements pay a flat fee, while others compensate athletes based on sales, affiliate commissions, appearances, or social media engagement. Understanding exactly how compensation works helps prevent unpleasant surprises later. Some questions every athlete should ask include:
One of the most restrictive provisions in many NIL contracts is exclusivity. For example, signing with one athletic apparel company could prevent an athlete from promoting competing brands for months or years. Athletes should understand:
An overly broad exclusivity clause could prevent future opportunities that are substantially more valuable.
Many NIL contracts address ownership of intellectual property including photos, videos, promotional materials, logos, digital content, social media posts, and merchandise designs. Athletes should understand who owns content created during the partnership. This is where experienced intellectual property attorneys provide tremendous value. Without careful review, athletes may unintentionally give away valuable intellectual property rights.
An athlete’s NIL has real commercial value. One of the most important questions is exactly what rights you are licensing. A contract should clearly define:
The broader the license, the more valuable your rights become and the more carefully they should be negotiated.
As AI technology continues to evolve, NIL agreements increasingly address digital rights. Athletes should pay close attention to language allowing companies to:
These provisions may have long-term consequences that extend well beyond the initial sponsorship. As AI law continues to evolve, carefully reviewing these clauses has become increasingly important.
Unfortunately, not every sponsorship works out. Knowing how to exit an agreement can be just as important as entering one. Athletes should understand:
Although NCAA rules surrounding NIL have evolved significantly, student-athletes must still comply with applicable NCAA guidance, conference rules, state laws, and institutional policies. Schools often have disclosure requirements, conflict-of-interest policies, brand restrictions, reporting deadlines, and team sponsorship limitations. Violating these policies can create eligibility issues or contractual disputes.
Many athletes are signing their first significant legal agreement. It is important to remember that contracts are negotiable, and many companies expect revisions during the negotiation process. Some common mistakes include:
An NIL agreement isn’t just about one sponsorship. Every contract affects your long-term personal brand. Successful athletes often build portfolios of endorsement relationships over several years. A poorly drafted agreement today may interfere with opportunities tomorrow. As your public profile grows, your name, image, and likeness become increasingly valuable intellectual property assets.
Protecting those rights should be viewed as a long-term investment, not simply a one-time transaction. Investing in legal guidance before signing can often save significant time, money, and legal complications later. A legal review can help:
At Lomnitzer Law, we understand that NIL agreements involve much more than marketing. They often include complex intellectual property, licensing, contract, branding, and commercial rights that deserve careful legal review. Whether you’re signing your first endorsement deal or negotiating multiple sponsorship opportunities, our experienced attorneys can help you understand your rights, identify potential risks, and negotiate agreements that better protect your future.
Every athlete’s career is unique, and every NIL contract should be evaluated with both today’s opportunity and tomorrow’s success in mind. If you’re considering an NIL opportunity, contact Lomnitzer Law before signing to ensure your interests and your intellectual property are protected.
