What Disclosure Requirements Do I Have Around NIL Deals?

What Disclosure Requirements Do I Have Around NIL Deals?

College athletics are entering a new era where student-athletes can benefit financially from endorsements and partnerships. However, complex NCAA rules around disclosure and eligibility still prevail. This guide breaks down key considerations for navigating Name, Image, and Likeness (NIL) deals as a student-athlete. It is important to contact an nil attorney before signing any type of contract.

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.

The Rise of the Student-Athlete Entrepreneur

Lucrative opportunities abound for talented student-athletes to profit from their own personal brand. Social followings in the hundreds of thousands and high-profile team roles position select collegiate stars to land six and seven-figure promotion agreements.

However, the undergraduate years serve another key purpose beyond business dealings – securing an education. Balancing brand building with academics and NCAA obligations takes shrewd judgment. Understanding disclosure rules that allow you to capture earning potential while maintaining eligibility is essential.

Demystifying Disclosure: A Checklist

Treat transparency as the default, not the exception.

Run through this compliance checklist with any new partnership:

• Thoroughly review the NCAA NIL disclosure policy and your athletic conference rules. Seek clarity from compliance staff on ambiguities.

• Understand your institution’s specific disclosure process and procedures. This may involve intake forms to submit, data to provide, or permissions to request.

• Disclose material terms to your athletic department before engaging the brand. This includes compensation, contract length, use of trademarks, and more.

• Submit ongoing disclosures as you reach milestones or amendments with the partner. Continual transparency builds trust.

Without attentiveness to disclosure procedures, you risk jeopardizing playing privileges, athletic scholarships or seriously damaging collegiate eligibility or reputation. Tread carefully.

Pitfalls to Avoid in Disclosure and Reporting

Even slight oversights or administrative remiss in disclosing deals can spiral. Heed caution towards these common missteps:

• Believing verbal notice or handshake agreements suffice with brands. Formal contracts prove critical.

• Assuming your coach or staff will handle informing the athletic department. The burden ultimately lies with you.

• Failing to disclose deals in the required timeframes, or providing inadequate documentation.

• Not disseminating amendments as obligations evolve or expand with the partner. Static reporting causes issues.

• Entering non-compliant deals banned expressly by the NCAA, such as gambling, alcohol, tobacco and erotic content. These remain prohibited.

While NCAA enforcement mechanisms continue developing, safeguard eligibility by keeping your disclosures earnest and comprehensive. The athletic and academic dreams you’ve invested years in achieving depend on it.

Best Practices for Maintaining Compliance

Beyond mandatory disclosing of deals, several proven tactics promote staying credibility and conflict-free:

• Seek binding contracts with brands, even for nominal compensation like free products. Defined terms prevent misunderstanding.

• Conduct regular audit checks that your NIL duties align neatly with NCAA emerging guidelines, as they continue evolving.

• Develop contingency plans if injuries or eligibility issues suddenly impact ability to deliver on agreements. Be prepared for uncertainty.

• Maintain clear segregation between collegiate obligations like classwork or competition and any branding duties. Separate calendars, point people and priorities for each.

• Set boundaries on marketing campaigns where brands seek excessive ownership of your voice or likeness. Don’t surrender full identity.

Disciplined personal management lends itself to making the most of NIL opportunities now and into a future playing professionally. Commit to staying above-board throughout.

Evaluating Your Risk Tolerance

As the volume of six and seven-figure deals grows, some worry a “buying players” wild west could unfold where brands and booster circles attempt influencing recruits. Contending voices also argue universities benefit substantially from athlete performance without adequate compensation.

If money alone motivates deal selection, undoubtedly ethical lines get blurred. Regularly evaluating you and your family’s risk tolerance developing deals provokes important reflection:

• What specific dollar amounts or compensation models feel excessive or raise integrity concerns? Set firm limits.

• Which brands authentically align with your values versus chasing dollars without meaning? Seek purpose-driven partnerships.

• Might certain partners expect you to subtly influence games, teammates or recruits? Uncover hidden motivations early.

• Could any affiliations negatively impact team culture or chemistry? Weigh with trusted advisors how deals might unsettle team dynamics.

By identifying red flags early and your personal thresholds, far less temptation exists later to jeopardize principles if flashy deals arise. Know explicitly what turns you’re unwilling to make for any payout.

Securing an NIL Lawyer

Holon Law can provide dedicated legal advice on NIL contracts. Our sport lawyers assist in negotiating agreements, interpreting disclosure rules, resolving disputes and ensuring you avoid compliance landmines. We help identify and create deals that align with your brand positioning. Please reach out if you wish to discuss current or prospective arrangements requiring counsel.

Frequently Asked Questions

1. Do NIL earnings affect NCAA athletic scholarship eligibility?

Typically no, as long as disclosure obligations are fulfilled. However, schools or conferences may elect to reduce or not renew aid for poor performance or conduct violations unrelated to NIL activities.

2. I already signed an NIL deal last month but haven’t disclosed it yet. What’s my best path forward?

Immediately notify your athletic compliance office, providing all relevant terms, compensation details and documentation. Express remorse for late reporting and commit to staying complaint moving forward. Request guidance specific to late disclosure in your case.

3. Can my university refuse to let me enter deals or force me to end existing ones they don’t approve of?

Likely no – you possess NIL rights independently. However, certain agreements could still jeopardize NCAA eligibility if problematic. Carefully vet all partners rather than moving hastily. Discuss concerns with counsel.

4. My NIL contract requires making promotional appearances during team activities or missing classes. Is this allowable?

No – NIL duties cannot interfere with academic schedules or athletic availability like practices, training and competition. Renegotiate terms or walk away from such agreements putting core collegiate responsibilities at risk.

5. If I sign a 4-year NIL deal but lose playing time or leave college early, could I face a lawsuit?

Potentially, if contract terms don’t account for these scenarios. Seek “out clauses” for loss of playing time, or early exit options for going pro or transferring schools. The firm can help negotiate favorable contingencies.

What to Remember When Hiring an NIL Attorney

NIL attorneys pave exciting new ground where being both a student and an entrepreneur co-exist proudly. With attention to sound judgment, transparency and wisdom balancing priorities, tremendous possibility awaits. Here’s to embracing the opportunities ahead wisely.

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.