3 Biggest Risks of Signing an NIL Contract Without Legal Advice
Signing an NIL Contract Without Legal Advice
Many college and high school athletes now have the opportunity to profit from their name, image, and likeness (NIL) through endorsement deals and sponsorships. While this new freedom presents exciting possibilities, there are risks to signing an NIL contract without proper legal advice. Let’s examine the 3 biggest risks athletes should consider before signing an NIL deal on their own.
Holon Law Partners has 100+ years of experience combined guiding clients through complex cases and legal intricacies. Our approach is empathetic, customized, and client-centered with a focus on you and your unique business needs. To schedule a consultation with us, call our team at (866) 372-0726 or email us at: info@holonlaw.com.
1. You May Leave Money on the Table: Consult an NIL Lawyer
Without an experienced NIL lawyer negotiating your contract, athletes risk accepting a deal that doesn’t pay them what they are truly worth.
A good NIL attorney knows the market value for brand endorsements in your sport. They can leverage that knowledge in negotiations to get you the maximum compensation allowed under NCAA rules. Going into talks without consulting an experienced NIL lawyer means you have no frame of reference for what a fair offer looks like.
Don’t sell yourself short. With the right help, you may be able to land a more lucrative contract.
2. You Could Sign Away Certain Rights
NIL contracts grant companies the right to use your name, image and likeness for promotional purposes. However, some deals may try to grab other rights that limit your earning potential.
For example, a contract could include an exclusivity clause restricting you from endorsing competitors’ brands. This ties your hands for potential deals down the road. Your nil lawyer can spot excessive restrictions and push to get them removed from the agreement.
Without that legal scrutiny, you risk signing away rights you didn’t intend to. This forfeits opportunities that otherwise would have been available to you.
3. You Lack Protection in Case of Disputes
Even with the best intentions on both sides, disputes can happen once the contract is signed. For example, the company might use your NIL in prohibited ways or withhold payments owed to you.
These types of breaches may open the door for lawsuits. Having an attorney gives you an advocate who can take swift legal action if the contract terms aren’t followed. Enforcing a contract on your own can be tricky especially against the teams of corporate lawyers major brands will deploy.
You need someone in your corner who knows NIL litigation and can fiercely defend your interests should trouble arise. Avoid potential exploitation by letting a legal professional review the fine print upfront.
Know Your Worth
Over 1 million college athletes can now profit from NIL deals under the new NCAA rules.
The brands have all the leverage without proper representation on the athletes’ side. Don’t let companies steamroll you into accepting less than you deserve. An NIL lawyer levels the playing field in negotiations and ensures you get maximum value.
Protect Your Brand Too
Your reputation means everything. Aligning with the wrong brands or giving up certain rights could damage your marketability in the future.
A good intellectual property lawyer vets potential partners thoroughly and negotiates contract terms that don’t limit your ability to take on more profitable deals down the road. They have your best interests in mind as both an athlete and a brand.
Know What You’re Signing
The legal jargon in NIL contracts can be confusing for non-lawyers. It’s easy to skim provisions without fully grasping the implications. An inadvertent oversight could cost you big time.
Run every contract by a legal pro before signing. They will explain in plain terms how each clause affects you. This prevents misunderstandings that could hamper your earning power.
Be Ready to Negotiate
Corporate lawyers aim to craft deals favoring the company. Don’t accept a lowball offer just because it’s on the table. A good NIL attorney counters with higher compensation and better protections for your interests.
Come to the table armed with an aggressive negotiator who knows how to leverage your value. This puts you in the best position to maximize your NIL opportunities.
Protect Yourself from Liability
Endorsement contracts come with legal risks too. For example, if a supplement you endorse ends up containing banned substances that gets you suspended, the brand could sue for breach of contract. Understand these potential legal risks before signing a deal.
A lawyer reviews all obligations thoroughly to limit liability concerns. They also negotiate clauses to shield you from possible damages in cases beyond your control. Avoid the headaches and ensure you have safeguards.
Selecting an NIL Lawyer to Support Your NCAA Contract
The NCAA’s policy change on NIL contracts is a game-changer for college athletes. But realize the risks of proceeding without proper legal guidance. Don’t leave money on the table or sign away your rights unwittingly. Protect yourself with experienced counsel to navigate NIL deals successfully. Doing so will help you maximize this exciting new opportunity to its full potential.
Holon Law Partners has 100+ years of experience combined guiding clients through complex cases and legal intricacies. Our approach is empathetic, customized, and client-centered with a focus on you and your unique business needs. To schedule a consultation with us, call our team at (866) 372-0726 or email us at: info@holonlaw.com.
This is informational in nature only and no attorney client relationship is created by reading this post. You should consult an attorney before relying on the information provided, here.
