The rise of Name, Image, and Likeness (NIL) rights has opened new doors for college athletes to profit from their personal brand. However, with these opportunities come legal complexities that can be difficult to navigate without expert guidance. This is where a legal advisor can be invaluable.
NIL Agreements
A skilled legal advisor helps college athletes understand the terms and conditions of NIL agreements, ensuring they are fair and protect their long-term interests. From negotiating endorsement deals to drafting contracts, a legal advisor ensures that athletes are not taken advantage of and that their rights are fully protected. They can also help with tax implications and compliance with NCAA and state regulations, ensuring college athletes stay on the right side of the law.
Deal Points
NIL deals typically involve the following:
Compensation: details the financial terms (e.g., upfront payments, ongoing royalties, performance bonuses, and/or commission-based earnings), how and when payments will be made (e.g., lump sum, installment payments, or tied to milestones) and additional bonus/incentive compensation tied to performance goals or specific campaign outcomes (e.g., social media engagement, sales, etc.).
Scope: how and where the athlete’s name, image, and likeness will be used for the type of license (e.g., advertising, merchandise, digital content), the geographical territory (local, national, or international), the platforms and media allowed (social media, TV ads, merchandise, print, etc.) and the duration any given license will be in force.
Content Creation and Deliverables: specifications on whether the athlete will create content or if the brand will create content using the athlete, the number of posts, mentions or interactions the athlete is expected to make, whether the athlete will make in-person appearances and the level of control the athlete has over the final content or messaging.
Exclusivity: whether the athlete can work with other competing brands or if the deal is exclusive to a particular brand or category and the duration of any exclusivity.
Compliance with NCAA (or Other Governing Body) Rules: If the athlete is a college athlete, the deal must comply with NCAA NIL rules. There are also possible state-specific NIL laws or tax requirements that could impact how the deal is structured.
Brand Affiliation & Messaging: outlines any restrictions on the type of brands or products the athlete can endorse (e.g., no alcohol or gambling-related brands), as well as aligning with the brand’s image and values (e.g., no political endorsements, no controversial behaviors), and who has the final say on messaging or campaign narratives.
Post-Termination Use: clarifies whether the brand can continue using any content featuring the athlete's NIL after the agreement ends (e.g., existing ads, promotions).
Termination Clauses: Specifies conditions under which either party can terminate the deal, such as breach of contract or violation of terms (e.g., negative publicity, failure to meet performance standards).
Role of a Legal Advisor in NIL Rights
In a rapidly evolving NIL landscape, having a legal expert by your side is essential for making informed, financially beneficial decisions while avoiding common pitfalls. Each NIL deal is unique and depends heavily on the athlete's brand value, the industry involved, and specific deal objectives. For athletes looking to maximize their earning potential without compromising their future, a legal advisor is a crucial partner.
Spiller Law is an advisor to startup businesses, entertainment and media companies, and artists. Feel free to schedule a free consultation.
Spiller Law is a San Francisco business, entertainment, and estate planning law firm. We serve clients in the San Francisco Bay Area, Silicon Valley, Los Angeles, and California. Feel free to arrange a free consultation using the Schedule Appointment link on our website. For other questions, call our offices at 415-991-7298.
The information provided in this article is for general informational purposes only and should not be construed as legal advice or opinion. Readers are advised to consult with their legal counsel for specific advice.
Comments