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NIL Knowledge Hub

NIL contracts: what to look for before you sign

A good NIL contract spells out exactly what you will do, when and how you will be paid, how long the deal lasts, what the business may do with your name and content, and how either side can end it. Before signing, also check that the deal fits your state, school and association rules, can be reported where required (such as NIL Go for Division I deals of $600 or more), and has a parent's signature if you are under 18.

Last reviewed Checked against official sources

Key facts

  • Put every NIL deal in writing, even small ones; several high school associations require a written agreement, and Division I athletes must submit deal terms to NIL Go.
  • If NIL Go does not clear a deal, the College Sports Commission's options include canceling it and refunding money already received, so a contract should say what happens then.
  • Many state laws bar NIL contracts that conflict with your team contract or your school's sponsorship deals, and some require you to disclose the contract to your school before signing.
  • Texas bars contracts that run past an athlete's participation in the college program; Florida's high school rule bars contracts that run past high school graduation.
  • In Louisiana, high school athletes under 18 need a parent's or guardian's written consent; elsewhere businesses usually require it anyway.
  • Paid posts must be disclosed under the Federal Trade Commission's Endorsement Guides, so expect a disclosure requirement in the contract.
On this page
  1. The basic terms every NIL contract should have
  2. Red flags
  3. Clauses that matter for college athletes
  4. Clauses that matter for high school athletes
  5. Agents and lawyers
  6. Frequently asked questions
  7. Sources

The basic terms every NIL contract should have

  • Parties: who is paying you (the deal sponsor) and, if different, who sends the money (an agency or facilitator).
  • Deliverables: exactly what you will do, such as three Instagram posts, one appearance, or an autograph session, with dates and approval steps.
  • Compensation: the amount, the form (cash, product, services), when it is paid, and any bonuses, royalties or commissions.
  • Term: when the deal starts and ends.
  • Rights granted: what the business may do with your name, image, likeness and the content you create, for how long, and where.
  • Termination: how either side can end the deal, and what is owed if it ends early.
  • Disclosure: who is responsible for labeling paid posts and reporting the deal.

Red flags

  • Rights that last forever (perpetual) or cover any use in any media without limits.
  • Broad exclusivity that blocks you from other deals in a whole category, for a long time, for little pay.
  • Payment tied to how you perform in games, to joining a team, or to enrolling at or staying at a school. That is pay for play and can cost you eligibility.
  • Use of your school's name, logo or uniform without the school's written permission.
  • Pay that is far above or below what similar athletes earn, or a deal with no real work attached (warehousing), which NIL Go may not clear.
  • Automatic renewals, large penalties for ending the deal, or a requirement that you pay the business.
  • Categories your state, school or association bans, such as alcohol, tobacco, cannabis, gambling or weapons.

Clauses that matter for college athletes

  • NIL Go clearance: say the deal is conditioned on being cleared, who submits it, and what happens if it is not cleared (renegotiate, cancel and refund, or arbitration).
  • School conflicts: many state laws bar contracts that conflict with your team contract or the school's sponsorships, and some require you to disclose the contract to the school first.
  • Revenue-sharing offsets: if your school's revenue-sharing agreement includes an offset for third-party deals, understand how this deal affects it.
  • Transfers: what happens to the deal if you change schools.
  • Length: some states, like Texas, bar NIL contracts that run past your participation in the college program.

Clauses that matter for high school athletes

  • A parent or guardian should review and sign. Louisiana requires written parental consent for athletes under 18, and contracts with minors can be hard to enforce without one.
  • No school name, logos, uniforms or facilities, and nothing during team activities.
  • Notice to the school or association within the required time, such as seven days in Georgia and Michigan, 72 hours in Pennsylvania and Virginia, or 14 days in Ohio.
  • No end date past high school graduation in states like Florida.

Agents and lawyers

You may use an agent or attorney for NIL. Many states require athlete agents to register or be licensed, and an agent agreement should state the fee, which deals it covers and how to end it. South Carolina caps agent commissions at 30%; the Senate-passed federal bill would cap them at 5% if it became law. A short review by a licensed attorney is often worth it for any deal with long-term rights or exclusivity.

Frequently asked questions

Do NIL deals need a written contract?

They should. Several high school associations require a written agreement, Division I athletes must submit deal terms to NIL Go, and a written contract protects both sides.

What should be in an NIL contract?

The parties, deliverables and deadlines, pay and payment schedule, length of the deal, the rights the business gets to your name and content, how either side can end it, and who handles disclosure and reporting.

Can a parent sign an NIL contract for a high school athlete?

Businesses usually require a parent or guardian to sign for an athlete under 18, and Louisiana requires written parental consent by law.

What happens if NIL Go does not clear my deal?

You can revise and resubmit, cancel the deal and refund any money, or go to neutral arbitration within 14 days. Your contract should say how each of those affects payment.

Next steps

Free templates and checklistsFrom the free resource library.Find a deal in the marketplaceBrands and opportunities in one place.Join free as an athleteKeep contracts, deliverables and payments together.

Sources

  1. Student-Athlete NIL Deals (if a deal is not cleared) — College Sports Commission
  2. Rules and Policies (offsets, documentation) — College Sports Commission
  3. H.B. 126, 89th Legislature (Texas), enrolled — Texas Legislature
  4. Résumé Digest, Act 810 (HB 513), 2026 — Louisiana State Legislature
  5. Policy 5.801: Name, Image, and Likeness (FHSAA Bylaw 9.9) — Sarasota County Schools
  6. 16 CFR Part 255, Guides Concerning the Use of Endorsements and Testimonials in Advertising — Electronic Code of Federal Regulations
  7. South Carolina's new NIL law and what it means for collegiate athletes — Womble Bond Dickinson

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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