When considering entering into any Esports contractual agreement, one legal issue that should be carefully reviewed and negotiated concerns name, image, and likeness (“NIL”) rights. Often, the contract templates that are offered to esports athletes include “breezy” language stating that the promoter will be allowed to “use” the event photographs, video, statements, etc. However, caution is required. These vaguely stated provisions are legally binding words that grant to the promoter certain of your NIL rights. Your name, image, and likeness are valuable commodities that should be sold and licensed for money, as well as other valuable considerations INDEPENDENTLY and SEPARATELY from the money and consideration that you obtain for your services as an athlete. Note that payment for services is not allowed for NCAA athletes; payment is only for NIL rights. That is not generally true for esports athletes.

Of course, in practice, payment for service and NIL rights are almost always combined. Nevertheless, the contract should be negotiated to address each separately. Here are four issues to focus on.

Term/length of NIL license

When you are granting/licensing your NIL rights, a key matter is the term/length of the grant/license being given. For example, if you are attending and playing a tournament, you can allow use of your NIL for any period of time, including during just the tournament itself, for a month afterward, or for a year after, etc. However, do you want to grant your NIL rights for ten years, 20 forever? Probably not.

Note that the longer your term/length, the longer an esports athlete is bound by other terms in the contract, such as the morals provision.

Exclusivity

In theory, you can grant your NIL rights to everyone and every business who is willing to pay for them. So, be cautious when agreeing to any sort of exclusive NIL deal. Not that the answer should always be “no,” but it must be carefully considered.

Note that there is a logical linkage between negotiating the term/length and the exclusivity. If the promoter wants exclusivity, the term/length should be very short (or the price should be very high).

Dividing NIL rights and defining what is being granted/licensed

Generally, NIL grants/licenses can be subdivided geographically, via market channels, and via usage. For example, geographically, the NIL rights could be given for just the event venue, the city hosting the event, or the State, nation, continent, globally, etc. Likewise, the marketing channels include one specific website, a type of website (game-related), the internet only, the internet and print media, television, film, all media, creation and physical placement of cardboard cutouts, etc. Usage could be subdivided into advertising and marketing for just this event, company, website, game, or for all uses, including other games, companies, etc. In general, the broader the NIL grant/license, the more money an esports athlete should be paid.

NIL use on, with, as, or in salable merchandise

Most NIL rights are used for marketing/advertising, but a sizable amount of NIL rights involve the separate issue of use on, with, as, or in salable merchandise. On the one hand, it might be “fun” to have a promoter make a bobblehead doll in your likeness. On the other hand, you should get paid a percentage of all the sales proceeds.

Contact the NIL Rights and Esports Attorneys at Revision Legal

For more information, contact the experienced NIL and Esports Lawyers at Revision Legal. You can contact us through the form on this page or call (855) 473-8474.

Why Esports NIL Contracts Demand More Scrutiny Than Sports NIL Deals

Esports NIL contracts operate in a different regulatory environment than NCAA sports NIL deals. For NCAA athletes, the rules governing what NIL compensation is permissible are set by the NCAA and by state statutes that have progressively eliminated prohibitions on athlete compensation for NIL rights. For esports athletes, no single governing body sets uniform rules, which means the parties are largely free to negotiate whatever terms they can agree on — but also means there is no institutional framework to prevent overreaching contract provisions from being enforced.

Esports promoters and team organizations often present form contracts drafted by their legal counsel. These contracts are designed to extract maximum value from the athlete while minimizing the promoter’s obligations. An esports athlete who signs a form contract without legal review is not signing a balanced agreement — they are signing an agreement that their counterparty’s lawyers optimized for the promoter’s benefit. That is not a criticism; it is how contract negotiation works. The lesson is that unrepresented athletes are at a systematic disadvantage.

Morality Clauses and Why They Attach to NIL Grants

Most esports and gaming contracts include a morality clause — sometimes called a “morals clause” or “conduct clause” — that permits the promoter to terminate the contract or claw back NIL payments if the athlete engages in conduct that the promoter deems harmful to its brand. These clauses are notoriously vague. A morality clause that allows termination for “behavior inconsistent with the promoter’s values” or “reputational harm to the brand” gives the promoter enormous discretion to terminate for conduct that the athlete would not have anticipated.

Morality clauses are particularly dangerous in long-term, exclusive NIL deals. If an athlete grants exclusive NIL rights to a promoter for three years, with a morality clause giving the promoter the right to terminate “for cause” upon 30 days’ notice, the athlete is locked out of competing NIL deals for the duration of the contract but has no assurance that the promoter will not terminate at its convenience by invoking the morality clause. Negotiating limits on morality clauses — specific, enumerated conduct that triggers the clause rather than open-ended standards — is essential legal work in any significant NIL deal.

Revenue Sharing on Merchandise: Getting the Math Right

When an esports athlete’s NIL rights are used in connection with salable merchandise — team jerseys, licensed game skins, collectible figurines, signed photographs — the NIL grant should specify a royalty structure that the athlete can actually verify. Key terms include:

• Definition of “net revenue” or “gross revenue” — royalties calculated on gross revenue are significantly more valuable than royalties calculated on net revenue after the promoter deducts marketing expenses, platform fees, and overhead allocations
• Reporting frequency — the athlete should receive quarterly revenue reports with unit sales data for any merchandise line that incorporates their NIL
• Audit rights — the contract should give the athlete the right to audit the promoter’s revenue records on reasonable notice, typically not more than once per calendar year
• Minimum guarantees — for merchandise lines that are expected to generate meaningful revenue, the athlete should negotiate a minimum guarantee regardless of actual sales, paid whether or not the merchandise meets sales projections

Streams, Clips, and the Ongoing Value of Competitive Footage

One of the most frequently overlooked aspects of esports NIL deals is the grant of rights to tournament and event footage. Most competitive gaming events are streamed live and archived on platforms like Twitch, YouTube, and the promoter’s own channels. When an esports contract grants the promoter the right to use the athlete’s NIL “in connection with event materials,” that language is broad enough to include every clip, highlight reel, and archival stream featuring the athlete for the duration of the NIL license.

For a professional gamer who builds their public profile through gameplay streams and highlight reels, granting a promoter perpetual, exclusive rights to competitive footage is a significant sacrifice. That footage is the raw material from which sponsorship deals, streaming revenue, and fan-driven merchandise sales are built. Esports contracts should distinguish between the promoter’s right to use footage for promotional purposes during the event and a permanent, exclusive license to all competitive footage featuring the athlete.

Practical Negotiation Points for Esports Athletes

• Treat any NIL provision in a promoter’s form contract as a starting point for negotiation, not a take-it-or-leave-it term
• Negotiate a defined term — three years or less for any exclusive NIL deal — with a clear renewal process that requires the athlete’s affirmative consent
• Push back on perpetual licenses for competitive footage; grant a license for a defined post-event promotional window (e.g., two years after the event) rather than a permanent grant
• Require specific, enumerated conduct to trigger the morality clause rather than open-ended discretionary standards
• Negotiate separately for each NIL use category: marketing and advertising, merchandise, footage licensing, and endorsement
• Confirm that any restrictions on the athlete’s ability to stream independently or enter competing NIL deals are specifically limited in scope and duration

NIL rights are valuable, and that value compounds as an esports athlete builds a following. Giving away broad, long-term NIL rights in early contracts can structurally limit the value available in future deals when the athlete’s market power is greatest. Before signing any esports contract that includes NIL provisions, consult with an attorney. Contact the NIL rights and esports attorneys at Revision Legal through the form on this page or call (855) 473-8474.