Sports law attorney looks at six areas to consider before sealing the deal
July 2026 marked five years since the NCAA announced its initial Name, Image, and Likeness (NIL) policy, allowing college athletes to monetize their personal brand without jeopardizing their collegiate eligibility. Despite the millions of dollars in potential sponsorships, though, college athletes may be leaving money on the table if they don’t scrutinize the fine print in their sponsorship contracts, according to Deb Schneider, a sports law attorney and former professional auto racing executive who teaches sports law and leads the sports law practice at intellectual property specialty law firm Fishman Stewart PLLC.
“The dollars in these NIL deals are often so huge that there is a rush to sign off on what seems to be a sweetheart deal,” Schneider said. “But there are myriad legal considerations that must be taken into account before signing a contract with confidence. In almost all college athlete situations, these young men and women athletes are in their late teens, with zero experience with any type of legal contract, much less one that guards their precious name, image and likeness. And while their parents may be guiding them, their familiarity with legal contracts would rarely extend to corporate sponsorships.”
Congratulations, you have a NIL deal! Here are six key considerations before signing.
1. Term & Exclusivity
How long is the athlete locked in, and does this deal quietly block them from working with other brands in the same space? A one-year deal with a soda company might also rule out a sports drink deal.
2. Compensation & Payment Timing
Is the money a flat fee or tied to performance, such as appearances or social media numbers? And just as important, when do you actually get paid? Obtain the payment schedule and all financial figures in writing.
3. Deliverables
Regarding deliverables, what exactly is owed to the sponsor? Five posts a month? An appearance? Look for specific numbers and wording. Vague language will always favor the brand, not the athlete.
4. Rights & Usage
Is the athlete handing over their name, image, and likeness forever, or just for the life of the deal? Make sure there's an end date on how the sponsor can use content (print, online, audio and video) provided by the athlete during the course of the contract.
5. Termination & Morality Clauses
Termination and morality clauses cannot be overlooked, especially considering the youthful age of the athletes, and the realities of young adult judgement. Equally important, what happens when the athlete gets injured or transfers schools - or the brand decides to walk away? Athletes should know their exit parameters, and that of their sponsors.
6. Compliance
Compliance is not just for accounting and finance departments! NIL contracts must follow the state’s NIL law first and also be reviewed by the school’s compliance officer. NIL rules are different everywhere and not knowing them isn't a defense.
“Five years in, NIL guidelines within the NCAA are still evolving,” Schneider said. “When presented with an NIL contract, it should be read multiple times, including by legal counsel. Then ask questions – lots of them. Handing over one’s name image and likeness, even for a handsome sum, is not an arrangement that should be entered into lightly.”
“The dollars in these NIL deals are often so huge that there is a rush to sign off on what seems to be a sweetheart deal,” Schneider said. “But there are myriad legal considerations that must be taken into account before signing a contract with confidence. In almost all college athlete situations, these young men and women athletes are in their late teens, with zero experience with any type of legal contract, much less one that guards their precious name, image and likeness. And while their parents may be guiding them, their familiarity with legal contracts would rarely extend to corporate sponsorships.”
Congratulations, you have a NIL deal! Here are six key considerations before signing.
1. Term & Exclusivity
How long is the athlete locked in, and does this deal quietly block them from working with other brands in the same space? A one-year deal with a soda company might also rule out a sports drink deal.
2. Compensation & Payment Timing
Is the money a flat fee or tied to performance, such as appearances or social media numbers? And just as important, when do you actually get paid? Obtain the payment schedule and all financial figures in writing.
3. Deliverables
Regarding deliverables, what exactly is owed to the sponsor? Five posts a month? An appearance? Look for specific numbers and wording. Vague language will always favor the brand, not the athlete.
4. Rights & Usage
Is the athlete handing over their name, image, and likeness forever, or just for the life of the deal? Make sure there's an end date on how the sponsor can use content (print, online, audio and video) provided by the athlete during the course of the contract.
5. Termination & Morality Clauses
Termination and morality clauses cannot be overlooked, especially considering the youthful age of the athletes, and the realities of young adult judgement. Equally important, what happens when the athlete gets injured or transfers schools - or the brand decides to walk away? Athletes should know their exit parameters, and that of their sponsors.
6. Compliance
Compliance is not just for accounting and finance departments! NIL contracts must follow the state’s NIL law first and also be reviewed by the school’s compliance officer. NIL rules are different everywhere and not knowing them isn't a defense.
“Five years in, NIL guidelines within the NCAA are still evolving,” Schneider said. “When presented with an NIL contract, it should be read multiple times, including by legal counsel. Then ask questions – lots of them. Handing over one’s name image and likeness, even for a handsome sum, is not an arrangement that should be entered into lightly.”
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