Signing your first Name, Image, and Likeness (NIL) deal is an exciting milestone, but the contract you sign can have a lasting impact on your career. Before you put pen to paper, it’s essential to understand the key components to ensure you are protecting your interests. While every contract is different, here are three critical areas every athlete should scrutinize.
First, understand the scope of work. The contract must clearly define exactly what you are expected to do. How many social media posts are required? Are there in-person appearances? Be wary of vague language like “promotional activities as needed.” Every deliverable should be explicitly listed to avoid future disputes and ensure you are being fairly compensated for your time.
Second, pay close attention to exclusivity clauses. Many brands will want to be the only company in their category that you can work with (e.g., the only sports drink). This is standard, but you need to ensure the category is narrowly defined. A broad “beverages” clause could prevent you from working with a coffee or protein shake brand, limiting your future earning potential.
Finally, review the term and termination clauses. How long does the agreement last? More importantly, what are the conditions under which you or the brand can end the partnership early? Look for a “morality clause,” which allows a brand to terminate the contract based on your conduct. Ensure the terms are reasonable and protect you from being dropped for unfair reasons.
Navigating contracts can be complex. Partnering with an experienced agent or advisor is the best way to ensure your rights are protected and your deals are structured for long-term success.