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By Michael Hughes
Attorney

The Name, Image, and Likeness (NIL) era has opened exciting opportunities for college athletes in Oregon, Nebraska, and across the country. Sponsorships, endorsements, and social media partnerships now provide student-athletes with the opportunity to earn a real income while pursuing their education and athletic careers.

But with opportunity comes risk. Many NIL contracts are drafted to protect the brand or agency, rather than the athlete. If you don’t know what to look for, you could end up locked into a deal that hurts your financial future or even jeopardizes your eligibility.

At The Hughes Companies, we guide college athletes, families, and even agents through the NIL contract process. Here are the top five red flags you should watch for before signing on the dotted line.

1. Unclear or Vague Compensation Terms

An NIL deal should clearly explain:

  • How much you’re getting paid
  • When you’ll receive payment
  • What triggers payment (a social post, an appearance, or sales of merchandise)

Vague language, such as “athlete will be compensated as determined by the brand,” is a major red flag. In both Oregon and Nebraska, transparency is essential so you know exactly what you’re earning and when.

2. Exclusivity Clauses That Block Future Deals

Some contracts contain exclusivity clauses, which prevent athletes from working with other sponsors. While exclusivity can sometimes make sense, such as a shoe brand asking you not to promote competitors, broad exclusivity terms can limit future earning opportunities.

For example:

  • A beverage company may try to block you from working with any food or drink sponsor.
  • A local sponsor might bar you from working with any other company in the same industry, even if it’s a better fit.

An NIL attorney can help narrow these clauses so you don’t lose future income.

3. Overreaching Usage Rights

Many NIL contracts include rights for the brand to use your:

The problem? Some agreements grant these rights “in perpetuity” (forever). That means a brand could legally use your likeness long after the contract ends—or even after you turn professional.

In both Oregon and Nebraska, protecting your intellectual property is critical. Usage rights should always be limited in scope and duration.

4. Conflicts with School or Team Agreements

Every school has its own NIL rules, and some schools in Oregon and Nebraska also have exclusive agreements with sponsors. Signing the wrong deal could put you in conflict with your athletic department and jeopardize your eligibility.

Examples include:

  • A personal apparel deal that conflicts with your school’s Nike or Adidas contract.
  • A gambling-related endorsement that violates NCAA or state restrictions.

Before signing, an NIL attorney will review your school’s policies to ensure your deal doesn’t put your scholarship or playing time at risk.

5. No Termination Clause or a One-Sided Exit Process

Every NIL contract should include a clear termination clause. Without one, you could be stuck in an unfair deal for years with no way out.

Look for:

  • Mutual termination rights (not just the brand’s).
  • Reasonable notice periods.
  • No excessive penalties for exiting.

If you don’t see these protections, that’s a serious red flag.

Why NIL Attorneys Are Essential in Oregon and Nebraska

NIL deals are exciting, but they’re also legally binding contracts. Unlike professional athletes, college athletes lack collective bargaining power and union representation. That means every deal is negotiated individually, and you need someone equally skilled on your side.

At The Hughes Companies, we:

Whether you’re competing in Eugene, Portland, Lincoln, or Omaha, we know the NIL landscape in your state—and how to protect your future.

Protect Your NIL Future Today

Don’t let one-sided NIL contracts limit your earning potential or jeopardize your eligibility. If you’re a college athlete, or the parent of one, in Oregon or Nebraska, make sure you have an experienced NIL attorney on your side.

Contact The Hughes Companies today to schedule a contract review and safeguard your future in sports and beyond.

About the Author
Attorney Michael Hughes has been practicing law since 1999. He has dedicated his practice to helping people navigate complex legal issues and fighting for their rights. His practice areas include NIL law, criminal defense, business law, and agricultural law.