What Parents and Athletes Need to Know Before Signing an NIL Contract

NIL has changed everything for college athletes. What has not changed is how unprepared most athletes and their families are when it comes time to sign a contract.

But here is what concerns me: most athletes and their families are signing contracts without fully understanding what they are agreeing to, what they are giving up, or how to protect themselves. And by the time they realize what they agreed to, it is often too late to fix it.

I represent student-athletes nationwide on NIL matters. Here is what I want every athlete and parent to know before they sign anything.

The First Question I Ask Every Athlete

When a student-athlete comes to me with an NIL contract, the first thing I say is: let us pretend for a second that you are going to be here for all four years.

I know that is not what most athletes want to hear. Everyone is thinking about going pro or transferring to a bigger program or a program that better recognizes their marketability (i.e. more $$). But athletes get hurt. Teams move someone else into your spot. Things change.

Before we even look at the deal, I want to understand: if you stay at this school for the full ride, what do we need to set up so you are taken care of no matter what happens?

And if you do not plan to stay, be honest about it. Because then we plan differently. We look at short-term maximization and make sure whatever endorsement you have can follow you to the next school.

Either way, you need a plan. Not just a contract.

NIL Is Not Just About Getting Paid

The biggest misconception I see is that NIL is just about collecting a check. It is not. If you are earning money from your name, you are running a business. And a business needs a foundation.

That means entity formation. Most athletes earning NIL income should have an LLC. It separates your personal assets from your business activity, provides liability protection and a structure for managing income and expenses properly.

It also means trademark protection. Your name, your logo, your brand identity. These are assets. If you do not protect them now, someone else can claim them later. I have seen it happen.

And it means understanding the contracts you are signing. What rights are you giving up? For how long? What happens if you transfer? What happens if you get injured? These are the questions most athletes never think to ask.

What Parents Should Be Asking

Parents play a critical role in NIL, especially for younger athletes. Here is what I tell every parent who comes to me:

First, read the contract before your child signs it. I know that sounds obvious, but you would be surprised how many families skip this step because the deal feels exciting and the money looks good.

Second, ask about exclusivity. Some NIL deals restrict the athlete from working with other brands in the same category. That might not matter today, but if a bigger opportunity comes along, your child could be locked out.

Third, ask about the term. How long does this deal last? Does it extend beyond the athlete's time at the school? What are the termination conditions?

Fourth, ask about intellectual property. Who owns the content created during the deal? If your child films a commercial or creates social media content for a brand, who has the rights to that content after the deal ends?

These are not complicated questions. But they are questions that protect your child's future, not just their present.

The Real Money Is Not Where You Think

Some schools are offering automatic NIL packages that can reach hundreds of thousands of dollars per year. That sounds incredible. And it is. But those packages come with expectations, competition, and no guarantee of longevity.

The real money for most athletes is in their personal endorsements and private deals. Local businesses, personal brand partnerships, social media content. These are the deals that follow you whether you transfer, graduate, or go pro.

My advice to every athlete: build something that lasts. The school deal is the starting point. What you build on top of it is what creates long-term value.

Get Legal Guidance Before You Sign

NIL is still new, and the rules are still evolving. The House v. NCAA settlement is changing the landscape for how schools compensate athletes directly. That means the contracts athletes are signing today may look very different a year from now.

Having an attorney review your NIL contracts is not an expense. It is protection. A single conversation can help you understand what you are agreeing to, identify red flags, and make sure the deal is structured in your favor.

If you are a student-athlete or a parent navigating NIL, I would encourage you to talk to someone before you sign anything. Not after.