NIL glossary

What is an offset clause in revenue sharing?

An offset clause is a term in a school's revenue-sharing agreement that lets the school renegotiate or reduce its payment to an athlete based on a third-party NIL deal the athlete receives.

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

In detail

The College Sports Commission allows offsets in institutional revenue-share agreements, but an offset may not reduce the school's original obligation toward its cap. Athletes should understand how an outside deal could change what their school pays them before signing either agreement.

Frequently asked questions

Can my school pay me less because I got an outside NIL deal?

Only if your revenue-sharing agreement includes an offset clause allowing it, and the cap accounting does not change.

Sources

  1. Rules and Policies — College Sports Commission

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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