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NIL Watchouts: Negotiating Favorable Terms with Your University
A Playbook for Success

Recent news reports of student-athletes being sued when they transfer colleges underscore how important it is to understand and effectively negotiate their rights regarding name, image, and likeness (NIL) agreements between universities and collectives.
As NIL deals between student-athletes and universities evolve, the best agreements are the ones that protect your brand, keep you eligible, pay you fairly for real deliverables, and protect you when you leave. Here’s a concise playbook of favorable terms to think about when a school presents a student with an NIL or revenue-sharing agreement.
Examples of Key Terms to Prioritize (This List is Not Exhaustive)
- Clear, direct compensation
- Specify what you’re paid for (appearances, content, ads, events) and when payments are due.
- Tie compensation to deliverables—not athletic performance, playing time, or roster status.
- Include late-payment and audit rights to verify amounts.
- Fair market value and rate protections
- State that compensation reflects fair market value.
- Add a “most-favored nation” clause so you’re not paid less than similarly situated teammates for the same deliverables, where appropriate.
- Narrow scope of rights
- Limit what NIL uses you’re granting (e.g., team media, in-venue, school social channels).
- Prohibit “all media now known or hereafter devised” unless fairly compensated.
- Reasonable term and survival
- Keep the term short (e.g., season or academic year) with no automatic renewals beyond enrollment.
- Avoid perpetual rights; if the school needs archival use, make it noncommercial and limited.
- Approval and control
- Require your prior written approval for any third-party licensing or materially new use.
- Reserve the right to reject uses that conflict with your personal brand or existing deals.
- No broad exclusivity
- If any exclusivity is necessary, keep it narrow (limited category, limited channel, limited time).
- Carve out your ability to do independent deals that don’t use school IP.
- Sublicensing and royalties
- If the school can sublicense your NIL (e.g., merchandise, broadcasts, video games), require:
- Your approval rights,
- Disclosed partners, and
- Additional compensation or royalties with clear reporting.
- School IP and co-branding
- Clarify when you may use school marks, uniforms, or facilities in content.
- If co-branding is allowed, set approvals, brand guidelines, and any license fees upfront.
- Category and conflict rules
- List prohibited categories (e.g., gambling, adult content) and define “conflict” narrowly.
- Add a process and timeline for school conflict checks so deals aren’t stalled indefinitely.
Red Flags to Avoid
- Perpetual, worldwide, royalty-free rights to your NIL.
- Compensation contingent on wins, stats, awards, roster status, or enrollment decisions.
- Uncapped exclusivity that blocks third-party deals or future pro endorsements.
- Sublicensing without approval or additional compensation.
- One-sided termination or vague “sole discretion” clauses.
- Broad morality clauses untethered to objective standards.
Quick Checklist Before You Sign
- Are compensation, deliverables, and payment timelines specific and in writing?
- Are rights limited to defined uses, with a clear end date tied to enrollment?
- Do you retain approval rights over sublicensing and sensitive uses?
- Are exclusivity and category restrictions narrow and clearly defined?
- Do you have audit rights, dispute steps, and a cure period for alleged breaches?
- Does the agreement preserve your ability to do third-party NIL deals?
This post provides general information and is not legal advice. Consider having a qualified attorney review the agreement. The right terms help protect your eligibility today and your brand value tomorrow.

