Top 5 Red Flags to Watch for in NIL Deals

In today’s NIL world, deals can be exciting — but not all NIL contracts are created equal. Whether you're a parent or a student-athlete, knowing what to watch out for can save you from legal headaches, eligibility issues, and lost money.

Here are the top 5 red flags to look for in any NIL agreement:

1. No Clear Payment Terms

If the contract doesn’t spell out exactly how much you’re paid, when, and how — stop. Vague language or delayed payment terms can lead to confusion or missed income.

2. Overly Long Contract Lengths

Some brands try to lock athletes into multi-year deals, even into college. That could limit future opportunities. Look for short-term, flexible agreements, especially early in your NIL journey.

3. No Exit Clause or Termination Terms

Every contract should say what happens if either party wants to walk away. If there's no clear way out, you could be stuck in a deal that no longer works for you.

4. Giving Up Too Many Rights

If a contract gives a company full rights to your name, image, and likeness forever (or for free), walk away. Your NIL is your personal brand — protect it.

5. No Legal Review or Professional Input

If the brand discourages you from showing the contract to a lawyer or trusted adult, that’s a huge red flag. A legit deal welcomes transparency.

Want to Review Deals with Confidence?

Our NIL Contract Confidence Guide teaches athletes and families how to:

• Spot red flags before it’s too late

• Know when to bring in legal support

• Feel confident saying “yes” — or “no”

Download our guides to help you navigate your NIL journey. Because smart athletes don’t just sign — they understand.