What Should Be in an NIL Contract? Key Clauses Every Athlete Needs to Understand
If you're a student-athlete entering the world of NIL (Name, Image, and Likeness) deals, you're not just an athlete anymore—you're a brand.
That means contracts matter. A lot.
And while it’s tempting to focus on the money or the free gear, the fine print is where your rights—and risks—really live. Here's what every athlete (and parent) should look for before signing an NIL agreement.
📌 1. Scope of Rights
What exactly are you giving them permission to use?
This clause should clearly state:
Whether the brand can use your name, image, or likeness (or all three)
How they can use it (social media? advertising? merch?)
Where (local? national? global?)
For how long
⚠️ Red flag: Anything labeled “perpetual” or “in perpetuity.” That means forever.
💼 2. Compensation Terms
This should go beyond the dollar amount. You need:
Payment schedule (lump sum or installments?)
Method of payment (check, direct deposit, etc.)
Non-cash compensation (gift cards, merch, travel)
Bonus opportunities or performance incentives
✅ Make sure it's crystal clear when and how you’ll be paid.
🚫 3. Exclusivity Clauses
Some brands will want you to agree that you won’t work with their competitors. That’s not necessarily bad—but you should know:
How long the exclusivity lasts
What categories it applies to (all clothing brands? Just shoes?)
Whether it limits future opportunities
⚠️ Don’t give away your flexibility unless the deal makes it worth it.
✂️ 4. Termination Clauses
Can you walk away if the brand crosses a line—or if your priorities change? Look for:
Conditions under which you can cancel the deal
What happens to the content you’ve already made
Whether there are penalties or clawbacks
If the only way out is legal action… 🚩
🧠 5. Intellectual Property Ownership
If you post content, sign gear, or appear in videos—who owns that material?
Make sure it’s clear:
Who controls the content you create
Whether you can repost or repurpose it
If the brand can keep using your name or face even after the deal ends
👀 6. Approval Rights
Do you get to approve the content before it's published? What about using your image next to other products?
Tip: Protect yourself from being associated with anything you wouldn’t publicly support. You want the right to say, “Nope.”
⚖️ 7. Dispute Resolution
This clause outlines what happens if things go wrong. Will disputes go to court or arbitration? Where? Who pays legal fees?
It’s boring—but important. You don’t want to travel across the country just to argue over a bad sponsorship deal.
✅ Final Thoughts from Newburg Law
An NIL deal is a business contract, and you are the business.
Don’t let excitement (or pressure) lead you into signing something you don’t understand.
Before you put pen to paper:
Read it carefully
Ask questions
Talk to a lawyer
Protect your future
We’ve helped athletes just like you navigate NIL contracts, identify red flags, and keep control of their brand.
📲 Have a deal on the table? Let’s take a look—before it takes advantage of you.
🛡️ Your Family. Your Future. Your Foundation.