Do Athletes Need a Lawyer for NIL Deals?
The short answer is, not always, but if real money or long-term opportunities are involved then having a lawyer can be the difference between a great deal and a costly mistake.
Name, Image, and Likeness (NIL) opportunities have opened the door for college athletes to capitalize on opportunities that were not available to previous generations of athletes. From local sponsorships and social media endorsements to national brand deals and equity partnerships, athletes now operate in a space that looks a lot like a small business. Like any business, contracts matter.
That said, it’s difficult to know when an athlete likely needs a lawyer for NIL deals and when they might be able to handle things themselves.
What Is an NIL Deal, Legally Speaking?
An NIL deal is a contract that allows an athlete to receive compensation for the use of their:
Name
Image
Likeness
Personal brand
Social media presence
Appearances or endorsements
These agreements can range from simple one-time social media posts to complex, multi-year brand partnerships involving exclusivity, licensing rights, revenue sharing, or maybe even equity.
At its core, an NIL deal is a business contract, and business contracts create legal obligations that can last well beyond a single season. It’s very important that athletes understand what they are signing before they are signing!
When a Lawyer Is Strongly Recommended…
1. The Deal Is Worth Real Money
If an NIL agreement involves more than a few hundred dollars, it is usually worth having a lawyer review it.
Why? Because the financial terms are only one part of the deal. NIL agreements often include:
Exclusivity provisions
Usage rights for your image
Payment timing and conditions
Termination clauses
Morality clauses
Athlete obligations
A lawyer will look at the compensation terms, for sure, but will also closely review non-monetary provisions to ensure the athlete actually gets paid, does not give away rights they were not intending to give away, can perform the services they are obligating themselves to perform, and the NIL agreement appropriately limits the scope of the other party’s rights to the athlete’s NIL. Even better is finding an attorney with a background in NCAA compliance who can ensure the NIL agreement’s terms are not going to create any NCAA compliance issues!
2. The Contract Includes Exclusivity
Many NIL contracts restrict an athlete from working with competing brands. These clauses can quietly limit future earning potential if they are too broad or too long. If the athlete doesn’t understand these clauses, they may unintentionally enter into other NIL agreements that could get them sued.
A lawyer can provide counsel on these terms to ensure the athlete understands what they are agreeing to and when appropriate, narrow these clauses so they protect the brand without unnecessarily restricting the athlete’s future opportunities.
3. The Deal Grants Long-Term Usage Rights
One of the most overlooked issues in NIL contracts is how long a company can use the athlete’s image and content.
I have seen NIL agreements that would have allowed a company to use the athlete’s photos or videos indefinitely, including the right to repurpose content for future marketing campaigns, even after the athlete’s relationship with the company ends.
Athletes should be compensated appropriately for long-term or perpetual usage rights. A lawyer can ensure the contract reflects that value, or can tailor the company’s usage rights in a way that’s more in line with the compensation received by the athlete.
4. The Deal Involves Equity or Revenue Sharing
Some NIL deals offer athletes:
Equity in a startup
Revenue-sharing arrangements
Ambassador roles with long-term upside
It’s VERY important to hire an attorney to review these arrangements. These deals can be incredibly valuable, or incredibly deceptive, depending on how they are structured. These types of agreements can also trigger more complex regulatory rules that all parties will need to keep in mind to ensure compliance.
Equity and revenue-based deals require legal review to confirm:
What the athlete actually owns (and when, if vesting is involved)
When and how they get paid
Whether the equity is real and transferable
Whether any securities laws are implicated and what compliance measures need to be taken
What happens if the company is sold
If equity is involved, legal review is essential.
Situations Where a Lawyer May Not Be Necessary
Not every NIL deal requires legal review. Some examples of when a lawyer may not be necessary include:
A one-time local appearance for modest pay
A free product exchange for a social media post
A simple short-form agreement with no exclusivity
In these situations, the cost of legal review may exceed the value of the deal so hiring a lawyer doesn’t make sense. However, athletes should still read agreements carefully and watch for non-monetary terms that may still create issues.
The Bottom Line is that NIL Deals Are Business Deals
Athletes who take advantage of NIL opportunities are entrepreneurs! Their personal brand has real value and every NIL agreement is a business transaction that affects that value.
Not every deal requires a lawyer, but it is important to recognize when the athlete does need a lawyer’s counsel. Just like a business will seek legal counsel in certain circumstances to protect its interests, a short contract review on the front end can prevent some expensive problems that could pop up later. A good business attorney should help the athlete protect and build their business and not giving opportunities away.
A short contract review on the front end can prevent expensive problems on the back end and ensure that athletes are building opportunities, not giving them away.
If the Athlete Has an Agent or Manager, is an Attorney Still Necessary?
Even if an athlete has an agent, a lawyer plays a different role. Agents typically focus on finding opportunities, negotiating business terms, and managing relationships. On the other hand, lawyers are more focused on contract language, legal risk, compliance with NCAA and state laws, and long-term rights and obligations.
Many successful athletes have both. The agent helps secure the deal while the lawyer ensures the contract protects the athlete.
Final Thoughts
The NIL era has created incredible opportunities for athletes. With the right guidance, these opportunities can extend well beyond college and help build lasting personal brands and businesses.
Before signing any significant NIL agreement, athletes should ask a simple question:
“Do I fully understand what I’m agreeing to and what I might be giving up?”
If the answer is no, it may be time to talk to a lawyer. If you would like to talk, please contact me to set up a time to discuss your opportunity and your goals!
This blog post is provided for informational purposes only and does not constitute legal advice. The information contained in this blog post does not constitute legal advice, should not be relied on as a substitute for legal advice, and is not tailored to your specific situation. Reading this post does not create an attorney-client relationship between you and Bonfire Legal. Laws and regulations vary by jurisdiction and change over time, so you should consult with a qualified attorney regarding your particular circumstances before making any legal or business decisions.
