What Is a College Athlete NIL Agreement?

Name, image, and likeness (“NIL”) contracts are agreements between a student-athlete and a business or organization that permit an athlete to monetize their celebrity status. The basic exchange is money or things of value to the athlete and the right granted to the business/organization, from the athlete, to use the athlete’s name, image, and/or likeness in advertising and promotions. The NIL agreement will set out the obligations of the parties, including the payment, the specific rights granted, obligations of the athlete, obligations of the company/organization, what happens if the agreement is breached, etc.

Note that, for student-athletes, NIL agreements are nested in overlapping and reinforcing rules and regulations from governments, conferences, and colleges/universities. That is, many States have enacted laws that regulate, limit and place requirements on such NIL agreements. Also, every college and university that sponsors teams has established policies and procedures related to NIL agreements. It is also arguably true that certain federal statutes apply such as the advertising and business practices rules promulgated by the Federal Trade Commission under the FTC Act. As can be seen, NIL agreements are not simple or straightforward. This is one reason that student-athletes should hire an experienced NIL Rights attorney before they sign any NIL agreement.

A NIL agreement is also a binding legal document. That is, if there is a dispute with regard to the agreement, a lawsuit can be filed in the appropriate court asking the judge to enforce the agreement. And, an NIL agreement is enforceable. Of course, there may be valid differences of opinion about what an agreement requires, but the agreement will still be enforced based on the judge’s interpretation.

Aside from the foregoing, an NIL agreement has some common provisions which include:

Length of time for the NIL agreement — even if the agreement is technically only one advertising campaign — like one commercial, one photo shoot, etc. — there must be a time limit; otherwise, the business/organization can use the commercial or photos forever
Obligations of the student athlete — this is usually a very long part of an NIL agreement since the specific endorsement activities are set out, but also other requirements like remaining a member in good standing with the relevant team; see this ESPN article for some interesting ways in which student-athletes agreed to provide their endorsements
Obligations of the business/company seeking the NIL rights — the main obligation is, of course, payment, timing of payment, etc.; but other obligations must be set forth like an obligation to obey rules and regulations determined by State laws and college/university policies; these provisions are often under-appreciated and under-negotiated
Ranking of obligations — it is important to state, in the agreement, that the athlete must comply with State and federal laws first, then the policies of his or her college/university, and THEN the obligations in the NIL agreement
What happens if there is a breach of the agreement? — these are called “default” provisions and can be thought of as “punishment” provisions; for example, if the athlete fails to show for a personal promotional event, what is the “punishment” under the agreement?
And more

Contact the NIL Attorneys at Revision Legal

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

State NIL Laws and How They Shape NIL Agreements

NIL agreements for college athletes do not exist in a legal vacuum. They operate within a multi-layered framework of state law, NCAA policies, conference rules, and individual school regulations. Understanding how these layers interact — and which layer governs when they conflict — is essential for any athlete or advisor reviewing an NIL agreement.

The State Law Framework

Prior to 2021, NCAA rules prohibited college athletes from receiving compensation for their NIL. The legal landscape changed with the Supreme Court’s unanimous decision in NCAA v. Alston, 594 U.S. 69 (2021), which held that certain NCAA compensation restrictions violated federal antitrust law. Following Alston, the NCAA suspended its NIL prohibitions, and states began enacting their own NIL statutes to govern how the new market would operate within their borders.

As of 2025, the majority of states have NIL-specific statutes on the books, though they vary significantly in their requirements. Common provisions across state NIL laws include: prohibitions on schools or conferences discouraging athletes from seeking NIL compensation; requirements that schools provide athletes with resources to understand their NIL rights; limitations on the types of businesses for which athletes can endorse (alcohol, tobacco, gambling, and adult content are commonly restricted); and provisions permitting athletes to hire agents and attorneys.

NIL Collectives: What They Are and What to Watch For

Most major NIL deals at Division I schools are now structured through NIL collectives — fan-funded organizations affiliated with (but technically separate from) the university that pool resources to pay athletes for NIL activities. Collectives have become the dominant mechanism for “school” NIL deals, allowing universities to remain at arm’s length from direct compensation while connecting athletes with funding sources.

From a contract law standpoint, dealing with a collective rather than a corporate sponsor creates different risks. Collectives vary widely in their financial sophistication, organizational structure, and long-term stability. Before signing an NIL agreement with a collective, athletes should investigate: (1) the collective’s legal structure (is it an LLC, a 501(c)(3), or an informal association?); (2) the source of its funding (donor pledges, merchandise revenue, or other?); (3) its history of timely payment to other athletes; and (4) whether the payment obligations are guaranteed or contingent on continued donor funding.

Payment defaults by NIL collectives are a growing problem. An athlete who signs a $500,000 NIL deal with a collective that is dependent on donations from a small number of major donors is exposed if those donors reduce or withdraw their contributions mid-season. Contracts with collectives should include payment security provisions — escrow arrangements, personal guarantees from the collective’s principals, or other mechanisms that protect the athlete if the collective’s funding is disrupted.

FTC Endorsement Rules and NIL Compliance

NIL deals that involve social media promotion, online endorsements, or any public-facing commercial activity must comply with the FTC’s endorsement and testimonial guidelines. Under the FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising, athletes who receive compensation for promoting a product or service must clearly and conspicuously disclose that material connection. This applies to Instagram posts, TikTok videos, Twitter/X endorsements, and any other social media platform.

The disclosure must be in the same medium as the endorsement — a disclosure buried in a post’s hashtag pile or hidden in a link does not satisfy the FTC standard. For video content, verbal disclosure is required in addition to any written on-screen disclosure. College athletes who are new to commercial endorsements often overlook these obligations. The NIL agreement itself should include FTC compliance provisions, and the athlete’s counsel should ensure the athlete understands what the rules require in practice.

Protecting the Athlete’s Brand Long-Term

One underappreciated aspect of NIL representation is helping athletes build a durable personal brand that extends beyond their college career. A student-athlete who registers their name or gamer tag as a trademark during college creates an asset that continues to generate value after graduation — or after a professional career ends. Similarly, an athlete who structures their NIL activities through a properly formed LLC establishes business and financial discipline early, learns to manage contractor relationships, and builds a credit and tax history that will serve them well regardless of how their athletic career unfolds.

The NIL attorneys at Revision Legal work with college athletes, high school prospects, parents, and NIL collectives on agreement drafting, negotiation, and compliance. Whether you are reviewing your first NIL offer or building a multi-year endorsement portfolio, contact Revision Legal to ensure your interests are protected at every stage.