Power, Paychecks, and Pressure

The amateur era is over. With the NCAA’s $2.8 billion
settlement now approved, student-athletes are no longer playing
only for scholarships. Real money is on the table, and so are real
legal consequences.

This shift isn’t just about opportunity. It’s about
risk. Athletes are signing contracts that look more like
professional agreements than college paperwork. These deals control
payment, performance, image rights, and mobility. Without legal
support, what looks like a win today could quietly lock down your
future.

Shifting the Landscape

Starting in the 2025–26 season, schools in the Power Five
conferences can pay athletes up to $20.5 million per year. This
revenue sharing is capped at 22% of a school’s average athletic
income. By 2034, that number rises to $33 million.

The deal also includes back pay, but only for those who claim
it. Athletes who played between 2016 and 2024 must file a valid
eligibility form to receive their share. The process isn’t
automatic. Legal help can ensure claims are filed correctly and on
time.

To manage all of this, a new College Sports Commission has been
created. It’s responsible for enforcing NIL rules, overseeing
compliance, and reviewing third-party deals. That includes
evaluating fairness and market value, possibly using AI.

Meanwhile, big questions remain. Some experts argue that
athletes should now be considered employees under labor law. Others
warn that unequal pay structures could trigger Title IX lawsuits if
gender equity isn’t addressed. As the legal structure evolves,
athletes must stay alert to how these debates may impact their
rights.

Clauses Redefining the Game

NIL agreements are changing fast, and the fine print is getting
heavier. For many athletes, these contracts now mirror employment
deals more than simple endorsement paperwork. The language used by
schools and collectives can affect how and whether you get paid,
who you can work with, and how much control you have over your
name, image, and movement.

Each clause matters. Understanding the key terms can protect
your value on and off the field.

Performance-Based Triggers

As compensation is no longer guaranteed, many NIL contracts tie
payment directly to playing time, starting status, or medical
eligibility. If you’re benched, redshirted without approval, or
held out by staff, even for non-performance reasons, your pay may
stop. These terms are often buried deep in the agreement.

Sponsorship Limitations

Some contracts limit your ability to work with brands that
compete with school sponsors. That could mean passing on major
opportunities. Even if a brand aligns with your values or audience,
you might be forced to turn it down if the school already has a
deal in place. These clauses can stay in effect year-round, even
off-season.

Conduct Requirements

Many agreements now include morality or conduct clauses. These
sections restrict the types of products you can promote, such as
alcohol, gambling, or political causes, and may even limit what you
say online. If the school believes your content hurts its
reputation, you could face financial penalties or removal from the
program.

Control of Identity and Persona

Athletes are being asked to license more than just their names.
Some contracts include rights to your tattoos, nickname, voice, or
even digital likeness. In some cases, these rights extend well
beyond graduation. Without clear limits, you may lose control over
how your image is used—and who profits from it.

Transfer Barriers

Schools are now using buyout clauses and payment termination
provisions to discourage transfers. You might be required to repay
a portion of your NIL earnings if you enter the transfer portal or
accept an offer from another program. In some cases, payments stop
the moment transfer discussions begin.

NIL contracts aren’t just legal documents; they shape
careers, brands, and life after college. In this short segment, CBS
highlights how one college athlete turned her NIL deal into a
strategic business opportunity and why guidance matters more than
ever.

Leverage Lost Without Legal Review

Most NIL contracts are drafted by institutions with one goal in
mind: protecting their interests. Athletes who sign without review
often take on all the risk without realizing it. These deals may
seem standard, but the details can create long-term traps,
especially if you plan to transfer, build a brand, or keep control
of your image.

This indicates that a legal review isn’t just helpful, but
very essential.

Buyouts and Liquidated Damages

Some NIL deals include steep financial penalties for
transferring. These buyout clauses can require athletes to repay up
to 50% of what they’ve earned, or more. In some cases, the
repayment kicks in even if you’re forced to leave due to
injury, coaching changes, or limited playing time. Without clear
terms, one decision could cost thousands.

Indefinite Licensing of NIL Rights

Contracts may grant schools the right to use your image, voice,
name, or tattoos forever. This isn’t just about promotional
posters. It can include merchandise, digital content, and
AI-generated likenesses. If the contract doesn’t set clear
limits, you may lose control of your identity long after you’ve
left campus.

Termination Power Imbalances

Schools often build in broad rights to cancel NIL agreements
“for cause” but keep athletes locked in on their side.
This means they can end the deal if they think you’ve violated
a vague rule, while you may be stuck with no exit path. Some
contracts even allow payment to stop immediately after a minor
dispute.

Automated Gatekeeping

All third-party NIL deals over $600 now go through a system
called NIL Go. This clearinghouse checks if the deal is
“legitimate” and meets market value standards. Behind the
scenes, AI could flag or block deals unfairly. If your offer is
delayed or denied due to flawed data or hidden bias, there may be
little recourse unless you know how to challenge it.

Roles That Protect or Overpromise

Having support in your corner is critical, but not all support
offers the same protection. NIL deals are legally binding, and
trusting the wrong person can lead to long-term consequences.
Athletes often rely on agents for guidance, but legal protection
requires a licensed attorney. The difference matters.

Agents

Agents help athletes grow their brand and secure deals. They
often manage endorsements, public image, and sponsorship
negotiations. But unless they’re also licensed attorneys,
agents can’t offer legal advice. That means they can’t
interpret contract clauses, spot hidden risks, or represent you in
disputes.

Some agents act like they handle everything, but reviewing legal
terms isn’t part of their job. If they overstep, you may be the
one left exposed.

Lawyers

Sports lawyers are trained to do what agents can’t. They
review, revise, and negotiate contracts. They know how to structure
deals to protect your rights, limit school control, and ensure you
stay compliant with NCAA, state, and federal regulations.
They’re also the only ones who can defend you in arbitration or
legal proceedings if things go wrong.

A lawyer won’t replace your agent. But without one, your NIL
team isn’t complete.

Agreement Pitfalls

Some collectives and booster organizations are offering NIL
representation agreements with vague language and restrictive
terms. These documents may lock you into long-term commitments or
give away rights you didn’t mean to surrender. Even worse, some
promise guaranteed payments that come with strings attached in fine
print.

Always have an attorney review any representation contract
before you sign, no matter how friendly or “standard” it
seems.

Securing More Than Just a Deal

The NIL era has transformed what it means to be a college
athlete. You’re no longer just competing; you’re
contracting. And every term you sign carries weight far beyond your
playing days.

This moment is powerful, but also personal. It’s about your
name, your voice, and your freedom to grow. Contracts that look
like opportunities today can become liabilities tomorrow. You must
ask the right questions, get every term in writing, and push back
on vague morality clauses, aggressive buyout penalties, or
open-ended rights to your image.

Before signing anything, make sure you’ve had the contract
reviewed by a qualified attorney. Understand who controls your NIL,
what happens if you transfer, and whether the agreement limits your
ability to build your brand beyond school walls. Verbal promises
won’t protect you; clear, written terms will.

Every athlete deserves more than a seat at the table. You
deserve leverage, protection, and a deal that works for your
present and the future. Traverse Legal helps athletes take control
of their contracts and protect what matters most.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.