Attorney
Since the NCAA allowed college athletes to make money for themselves through name, image, and likeness (NIL) deals, many students have pursued these financial opportunities. However, while NIL deals offer a long-awaited chance for NCAA athletes to earn money for their labor, some students have been burned by exaggerated promises from boosters and other unscrupulous parties. Any athlete considering an NIL deal needs to think carefully and review the offer with an attorney before signing it.
As an experienced NIL lawyer and sports agent, Attorney Michael R. Hughes of The Hughes Companies can provide the skilled representation NCAA athletes and their families need to handle the intricacies of these legal agreements.
Legal Issues to NCAA Athletes Must Consider Before Signing a NIL Deal
Some potential legal issues college athletes should watch for when considering an NIL deal include:
- Conflicts with NCAA Eligibility Rules: Before signing any deal, confirm that the agreement complies with NCAA regulations and your school’s policies. Violating these rules could jeopardize your eligibility to play college sports, putting your athletic career at risk.
- Compensation Limits and Restrictions: Some NIL deals may restrict how you can earn money or require you to perform specific duties. Make sure you understand the compensation structure and any limitations so you aren’t locked into a deal that undervalues your brand.
- Tax Implications: Any money you earn through an NIL deal is taxable income under IRS rules. If you don’t plan for taxes, you might owe the IRS a lot of money, which could come as an unpleasant surprise during tax season.
- Exclusivity Clauses: Some NIL contracts include exclusivity clauses that prohibit you from working with competing brands during the contract term. Be wary of deals that limit your future opportunities or lock you into long-term commitments.
- Intellectual Property Rights: Make sure you retain control of your name, image, and likeness. Some deals may try to claim ownership or unlimited rights over your intellectual property, which could restrict how you use your brand in the future.
- Contract Duration and Termination: Pay attention to the length of the deal and how you can terminate it. You don’t want to be stuck in a long-term deal that isn’t benefiting you or that you can’t exit if things go wrong.
- Representation and Legal Advice: Before you sign the contract, hire an attorney to review it. Professional guidance can help you avoid legal pitfalls, and your lawyer can negotiate on your behalf for a fair deal.
How an Experienced NIL Lawyer Can Protect Your Brand and Finances
As a licensed attorney and certified sports agent in Oregon and Nebraska, Attorney Michael R. Hughes is uniquely positioned to help college athletes address the challenges of NIL deals. With his extensive legal knowledge and experience, Attorney Hughes can carefully review contracts to make sure they are fair, transparent, and comply with NCAA regulations. By spotting problematic clauses, such as exclusivity agreements or intellectual property rights issues, Attorney Hughes helps athletes avoid signing deals that could limit their future opportunities or exploit their name, image, and likeness.
Furthermore, he frequently negotiates on behalf of athletes to secure more favorable terms. This legal guidance is crucial to making sure an athlete’s compensation reflects their brand’s true value.
Attorney Hughes also advises athletes on the tax implications of NIL deals, helping them plan for the income they’ll generate so they won’t face unexpected tax burdens.
Contact an Oregon and Nebraska NIL Lawyer Now
In an industry where young athletes are often vulnerable to exploitation by boosters or other dishonest parties, Attorney Michael Hughes’ role as an attorney and sports agent allows him to protect student-athletes from unfair deals and safeguard their financial futures. Call The Hughes Companies today or reach out online for a free consultation.