NIL glossary

What is an exclusivity clause in an NIL contract?

An exclusivity clause is a contract term that bars an athlete from working with competing brands, usually in a product category, for a set period.

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On this page
  1. In detail
  2. Frequently asked questions
  3. Sources

In detail

Exclusivity can be reasonable when it is narrow (one category, such as sports drinks), time-limited and paid for. Very broad exclusivity, such as all food and drink for several years, can block other deals. Exclusivity can also collide with a school's own sponsors: several state laws bar NIL contracts that conflict with the school's existing agreements. See NIL contracts.

Frequently asked questions

Should I sign an exclusive NIL deal?

Only if the category and time are narrow and the pay reflects what you give up. Have a lawyer or trusted advisor review it.

Sources

  1. New York Education Law § 6438-C — The New York State Senate
  2. Code of Virginia § 23.1-408.1 — Virginia General Assembly

This is general information, not legal advice. NIL rules differ by state, school, association and sport, and they change often. Check the official sources linked on this page and talk with your school's compliance office, your state association or a licensed attorney before you sign anything.

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