New Year, New NIL Contracts

For many athletes (and parents) the new year in college sports brings new opportunities from universities and collectives. It also brings something else: new NIL contracts for the 2026 season. If it is the first agreement you have ever seen for more money than you have ever seen before, it is hard not to want to sign immediately.

The university or collective usually has more leverage, and most NIL agreements are drafted to protect their interests first. That does not mean the deal is bad. It just means you should understand what you are signing before you commit your name, your brand, and your future earning power.

A NIL contract is not only about how much you will be paid. It is also about:

what you are required to do,
what you are not allowed to do,
how payments can be withheld or terminated, and
whether the contract includes a “claw back” that demands money back after you have already earned it.

Red Flag #1: Unlimited “services” at the collective’s choosing

I have seen contracts that state the collective will pay an athlete “X” dollars and, in return, the collective can require the athlete to participate in any NIL activity the collective chooses.

It is reasonable that you will not be able to choose every appearance or deliverable. But the agreement should still include reasonable limits, especially when an activity could conflict with your core values, interfere with academics/athletics, or damage your reputation long-term.

Red Flag #2: Claw backs that require repayment of earned money

I have also seen provisions requiring the athlete to pay back all earned income if they transfer, get injured, get suspended, “fail to meet expectations,” or do something the university or collective “disagrees with.”

Yes, if an athlete is suspended or simply does not perform the contracted services, the collective should be able to pause future payments or terminate the deal. But if you have performed the work required under the contract, you should be protected in keeping what you have already earned.

Other issues to watch for

Other red flag clauses often include:

Indemnification (shifting legal risk onto the athlete if something goes wrong)
Exclusivity (blocking you from other NIL deals—even ones unrelated to the university or collective)
Automatic renewals (locking you in and preventing you from getting paid more in your later years of college athletics)
Assignment without consent (your contract can be transferred to another party you never agreed to work with)
Confidentiality provisions (which can open you up to a breach of contract just by providing information to friends and family)
Unrealistic deliverables (requirements that ignore a student-athlete’s schedule and travel demands)

Bottom line

In today’s NIL landscape, many deals may still be worth signing, even if the terms are not perfect, if the opportunity is significant enough. But even when you feel pressure to sign quickly, you should know exactly what you must do to get paid and what could cause you to lose money (or owe money back).

A two-hour review by an attorney could save you thousands, hundreds of thousands, or even millions of dollars.