An NIL contract is a deal in which a business pays an athlete, in money, products or services, for the use of their name, image or likeness. This checklist covers twelve parts to read before anyone signs: who the parties are, how long it runs, what the athlete must deliver, how and when payment arrives, what rights the business gets and for how long, and how the deal can end. For NCAA Division I athletes, the terms also matter for eligibility, because deals worth $600 or more must be reported to the College Sports Commission's NIL Go platform within five business days.
This is general education, not a reading of any particular contract.
What is an NIL contract?
NIL stands for name, image and likeness. The College Sports Commission defines it broadly, from a person's name and picture to their voice, signature and biographical details. An NIL contract licenses some of those to a business in exchange for money, products or services, often with work attached, such as posts or appearances.
The right to control commercial use of a person's name or likeness is called the right of publicity. It comes mainly from state law, and protection differs from state to state.
What rules apply to an NIL contract?
It depends on level and state. NIL Go applies to NCAA Division I athletes.
NCAA Division I and NIL Go. Since June 7, 2025, NCAA Division I athletes have been required to report third-party NIL deals worth $600 or more in total, including deals that could reach $600 through royalties or bonuses, within five business days of signing or agreeing to payment terms. Non-cash benefits count, and deals with the same business, or businesses with common owners, are added together. This applies even at schools that have not opted into revenue sharing.
NIL Go reviews each reported deal against three tests:
- Associated status: whether the business or person behind the deal has ties to the athlete's school, such as a group that exists in significant part to support the school's athletes, or a donor who has given more than $50,000 over their lifetime to the school or such a group.
- Valid business purpose: whether the deal uses the athlete's NIL to promote or endorse goods or services sold to the public for profit.
- Range of compensation: whether the pay is in line with what similarly situated people with comparable NIL value earn.
If a deal is not cleared, the athlete can renegotiate and resubmit, cancel the deal and refund money already received, or appeal to neutral arbitration within 14 days. Continuing with a deal that was not cleared or not reported can lead to enforcement, which could include loss of eligibility.
State law and school policy. A September 2026 count by a state-policy tracker found 35 states with NIL policies by statute or executive order, and they take different approaches to disclosure, agent registration and high-school NIL. Schools set their own policies too. Some bar deals that conflict with the school's sponsorship agreements and ask for notice at least seven days before the athlete commits; Occidental College's policy is one example. The school's compliance office can say which rules apply.
High school. Each state's high-school athletic association sets its own NIL rules. In Ohio, for example, a student and family have 14 days to report an NIL agreement to the state association, and the student and a parent complete a notarized affirmation. High-school deals can matter later, too: athletes who enroll at a Division I school report third-party deals of $600 or more made after July 1, 2025 or after the start of their junior year, whichever is later.
What should families check in an NIL contract?
The table covers twelve parts, starting with the five our NIL page names: parties, term, rights, deliverables and payment.
| Clause | What it covers | Questions to consider |
|---|---|---|
| Parties | Who is agreeing: the athlete, a parent, an LLC, the brand, and any agency that arranges or pays the deal. | Is the athlete, a parent or a business named? Does the athlete sign too? Who sends the money? |
| Term and renewal | Start and end dates, automatic renewals and options to extend. | Does it renew on its own? What happens after a transfer, an injury or the end of a season? |
| Deliverables and approvals | The posts, appearances or other work, the deadlines, and who signs off on content. | How many posts or appearances, and by when? Who approves content? What if a deadline is missed? |
| Payment | Amount, schedule, method, and any products, bonuses or royalties. | When does money arrive, and in what form? Is any pay tied to performance? Will the payer ask for a Form W-9? |
| Rights granted | Which parts of the athlete's NIL the business may use, in which media, where and for how long. | Is the right exclusive or non-exclusive? Can the business pass the rights to someone else or edit the content? Is the use described specifically? |
| Use after the deal ends | Whether posts stay up and whether photos or video can be reused after the term. | Do posts come down at the end? Can the business keep using content, and for how long? |
| Exclusivity and category conflicts | Limits on working with competing brands during, and sometimes after, the deal. | Does it block one competitor or a whole category? Does it clash with a school or team sponsor? |
| Conduct ("morals") clause | Terms that let the business pause or end the deal over conduct, as the contract defines it. | What conduct counts, and who decides? Is there notice or a chance to respond? Is any money repaid? |
| Termination and clawbacks | How either side can end the deal early, and what happens to money already paid. | Can the athlete end it, and on what notice? What happens if NIL Go does not clear the deal? |
| Reporting and disclosure | Who reports the deal to NIL Go, the school or a state association, and whether confidentiality terms allow it. | Can the athlete share the full contract with the school and NIL Go? Who files, and by when? |
| Agents, agencies and collectives | Any third party that arranges the deal, handles payment or takes a fee. | What fee does the agent take, and from which payments? Is the agent registered where state law requires it? Is a collective involved? |
| Disputes and governing law | Whether disputes go to arbitration or court, where, and which state's law applies. | Where would a dispute be heard? Which state's law applies? Who pays the costs? |
Why do families look closely at these clauses?
Payment. The IRS says NIL income is generally taxable, including products and services, and must be reported even if no Form 1099 arrives. The IRS also tells athletes to accurately complete Form W-9, or Form W-4 if paid as an employee, and give it to the payer. For payments made after December 31, 2025, a business generally files Form 1099-NEC for nonemployee pay of $2,000 or more in a year. Our guide to Form W-9 explains what the form asks for.
Rights granted and vague deals. When a deal is with a collective or another associated business, the CSC says it must actually use the athlete's NIL in a clear and specific way. Buying rights for unspecified future use, which the CSC calls "warehousing," may not satisfy the Commission's rules. The NCAA lists pay with no required deliverables and vague future-use agreements among things that are not allowed. More on licensing: our business guide to intellectual property.
Who pays. The CSC calls the business that benefits from the athlete's NIL, and funds the deal, the "deal sponsor." An agency that handles payment for it is a "deal facilitator." Raising money to persuade athletes to attend a school is not a valid business purpose.
School agreements. Revenue-sharing agreements with a Division I school are separate contracts. The CSC allows a school's revenue-share agreement to include a term that lets the school renegotiate or reduce the payment based on an outside NIL deal.
Disputes. Arbitration is a way to settle disputes outside court, and arbitration decisions are generally binding. A forum selection clause names the court and location for disputes. Both are separate from NIL Go arbitration, which reviews CSC decisions on whether a deal clears.
What if an LLC is named in an NIL contract?
Some contracts name the athlete personally and some name a business, such as an LLC. The name and likeness being licensed belong to the athlete, so who signs, and in what capacity, is a question for the contract and an attorney. An LLC does not replace NIL Go reporting, association disclosure or school rules. Whether an LLC fits at all depends on facts each family has; the NIL LLC guide for families covers when one can help and when it can wait.
What changes when the athlete is a minor?
Contracts signed by minors are generally voidable, on the theory that a minor lacks full capacity to contract. How that applies to an NIL deal, and what a parent who co-signs takes on, depends on state law and the contract's terms. Who signs for a minor also varies by state, and some high-school associations require a parent's involvement, such as Ohio's notarized affirmation from the student and a parent. A licensed attorney in your state can review the agreement before anyone signs.
Who can review an NIL contract?
A licensed attorney can review an NIL contract before anyone signs.
Agents are a separate role. NCAA rules let athletes use agent representation for NIL activities, and each athlete may designate one representative to enter deals into NIL Go for them. Many states regulate athlete agents, often through versions of the Uniform Law Commission's athlete agents act, which provides for agent registration. In Ohio, high-school member schools approved NIL language allowing agents for marketing purposes in May 2026.
Frequently asked questions
Division I athletes report third-party deals worth $600 or more in total to NIL Go within five business days. NIL Go checks associated status, valid business purpose and range of compensation; a deal that is not cleared can be renegotiated, cancelled with a refund, or appealed.
Contracts signed by minors are generally voidable, but how that applies to an NIL deal, and what a co-signing parent takes on, depends on state law and the contract's terms. A licensed attorney in your state can review the agreement before anyone signs.
Under College Sports Commission rules, yes, if the deal is for a valid business purpose and the pay is in line with comparable NIL value, and, for deals of $600 or more, the deal is reported to NIL Go and cleared. A group that exists in significant part to support a school's athletes, or to create NIL opportunities only for them, is an "associated entity" under the CSC definition. Schools cannot promise an athlete a third-party NIL deal, verbally or in writing.
It can. Athletes who enroll at a Division I school report qualifying earlier deals within 14 days of enrolling or before their first Division I game, whichever comes first. High-school NIL rules are set by each state's athletic association.
No. This checklist lists questions to ask, not contract language. The rules a deal must fit come from several places: the NCAA and CSC for Division I, state law, state associations and each school's own policy.
Educational information, not legal or tax advice. LLCAttorney.com is not a law firm.
Sources
- College Sports Commission, FAQ (NIL Go reporting, review standards, not-cleared options, warehousing, cap). https://www.collegesportscommission.org/faq/ (page data dateModified 2026-10-07; retrieved 2026-10-19)
- College Sports Commission, Student-Athlete NIL Deals (NIL Go, one designated representative, range-of-compensation threshold "as of July 2026", outcomes). https://www.collegesportscommission.org/nil/ (retrieved 2026-10-19)
- College Sports Commission, Rules and Policies (NCAA Bylaws 12.02.8, 22.1.3, 22.2.2, 22.2.2.5.1, 22.2.2.5.3, 22.3.2; revenue-share offset interpretation). https://www.collegesportscommission.org/rules-and-policies/ (retrieved 2026-10-19)
- College Sports Commission, Glossary (NIL, deal sponsor, deal facilitator). https://www.collegesportscommission.org/glossary/ (retrieved 2026-10-19)
- NCAA, Name, Image and Likeness. https://www.ncaa.org/student-athletes/name-image-likeness/ (no page date; retrieved 2026-10-19)
- IRS, Name, image and likeness income. https://www.irs.gov/businesses/small-businesses-self-employed/name-image-and-likeness-income (last reviewed 2026-08-14)
- IRS, Form 1099-NEC and independent contractors (FAQ). https://www.irs.gov/faqs/small-business-self-employed-other-business/form-1099-nec-independent-contractors/form-1099-nec-independent-contractors (last reviewed 2026-10-16)
- Cornell Legal Information Institute, Wex: infancy. https://www.law.cornell.edu/wex/infancy (last reviewed June 2023)
- Cornell Legal Information Institute, Wex: publicity (right of publicity). https://www.law.cornell.edu/wex/publicity (retrieved 2026-10-19)
- Cornell Legal Information Institute, Wex: arbitration. https://www.law.cornell.edu/wex/arbitration (last reviewed March 2025)
- Cornell Legal Information Institute, Wex: forum selection clause. https://www.law.cornell.edu/wex/forum_selection_clause (retrieved 2026-10-19)
- Ohio High School Athletic Association, NIL Resource Center. https://www.ohsaa.org/Eligibility/NIL-Resource-Center (dates on page: Nov 2025 referendum, May 2026 agent update; retrieved 2026-10-19)
- Occidental College Athletics, NIL Policy. https://oxyathletics.com/sports/2026/3/20/nil-policy.aspx (retrieved 2026-10-19)
- Illinois College Athletics, NIL Policy. https://illinoiscollegeathletics.com/sports/2022/4/20/nil-policy.aspx (retrieved 2026-10-19)
- MultiState, "The New Economics of College Athletics (An Update on Name, Image, and Likeness Laws)," Sept. 29, 2026. https://www.multistate.us/insider/2026/9/29/the-new-economics-of-college-athletics-an-update-on-name-image-and-likeness-laws (policy tracker; already cited on /nil-llc)
- Uniform Law Commission, "ABA Approves Six New Uniform Acts" (Revised Uniform Athlete Agents Act; 2000 act enacted in 42 states), posted Apr. 25, 2016. https://www.uniformlaws.org/committees/community-home/digestviewer/viewthread?GroupId=7&MID=17&CommunityKey=d4b8f588-4c2f-4db1-90e9-48b1184ca39a
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