5 Red Flags in NIL Contracts Athletes Should Know Before Signing

NIL deals move fast. A brand reaches out, sends over a contract, and wants a signature by the end of the week. Most athletes — and their families — don't have a lawyer on call. So they sign, hope for the best, and find out later what they agreed to. Some NIL contracts are straightforward and fair. Others contain provisions that create real problems down the road. Here are five things to look for in every NIL agreement.

1. Broad Exclusivity Clauses

Exclusivity is common in NIL deals, but the scope matters enormously. A contract that says you can't work with any other brand in a "related category" could block you from deals you haven't even been offered yet. I've seen exclusivity clauses drafted so broadly that an athlete couldn't accept any endorsement deal in their sport — not just with a direct competitor. Before you sign, make sure you understand exactly what you're agreeing not to do, for how long, and whether the compensation justifies that restriction.

2. Vague Deliverable Requirements

Some contracts list deliverables like "social media posts as requested" or "appearances at brand events." Without specifics — how many posts, what platforms, what format, how much notice for appearances — you're agreeing to an open-ended obligation. Brands can use vague language to demand more than you expected, and you'll have little leverage to push back once you've signed. Good contracts define deliverables clearly: number of posts, platforms, content approval process, and timeline.

3. IP Ownership Language

Many NIL contracts include provisions that assign intellectual property rights to the brand — including your name, image, likeness, and sometimes content you create. Some of these provisions are standard. Others are drafted so broadly that the brand ends up with rights to use your image indefinitely, in any context, even after the deal ends. Pay attention to what rights you're granting, how long they last, and whether you retain any approval rights over how your image is used.

4. Payment Timing and Conditions

A contract that says you'll be paid "$5,000" doesn't tell you when, or under what conditions. Some contracts tie payment to deliverables in ways that make it easy for a brand to dispute whether you've performed. Others include payment schedules that stretch out over months with no clear enforcement mechanism if a payment is missed. Make sure the contract specifies payment dates, what triggers payment, and what happens if the brand doesn't pay on time.

5. Eligibility Compliance (or the Lack of It)

Most properly structured NIL deals don't affect eligibility. But certain arrangements can — particularly those that look like pay-for-play or that are tied to enrollment decisions. If a contract doesn't address NCAA and conference rule compliance, or if the structure of the deal raises eligibility questions, that needs to be resolved before you sign. An attorney who works on NIL matters should review any deal that involves unusual payment structures, collective arrangements, or anything that feels like it's tied to your decision to attend or stay at a particular school.

The Bottom Line

The Deal Review service ($595) is designed exactly for this situation — you have a contract in hand, you want to know what you're agreeing to, and you want clear feedback before you sign. It's a straightforward, flat-fee service with a fast turnaround.