Attorney
A single poorly worded clause in an NIL contract can cost your young athlete thousands of dollars—or their eligibility. As NIL opportunities reach high school players and college freshmen under 18, families are being asked to evaluate complex agreements without knowing what to look for. Contracts with minors raise questions about enforceability, parental consent, and long-term obligations that most standard NIL deals don’t address. Before your student-athlete signs anything, an Oregon or Nebraska NIL attorney can identify red flags, negotiate better terms, and protect their future on and off the field.
Why Minor Contracts Require Special Attention
Under contract law in Oregon, Nebraska, and most other states, minors generally cannot enter into binding agreements on their own. This legal protection exists to shield young people from exploitation—but it creates complications on both sides of an NIL deal.
A minor can typically disaffirm (walk away from) a contract before turning 18 or within a reasonable time after. For brands, this makes contracts with unaccompanied minors risky and often unenforceable. For young student-athletes, it means a company may hesitate to honor payment terms or long-term commitments when the contract could be voided at any time.
The most common solution is to require a parent or guardian to co-sign. This makes the agreement enforceable—but it also makes you legally responsible for everything in that contract. If your child misses a deliverable, violates an exclusivity clause, or breaches any term of the agreement, the company can pursue you for damages. Before you sign alongside your student-athlete, make sure you understand exactly what obligations you’re guaranteeing and what happens if something goes wrong.
Common Pitfalls in Minor NIL Contracts
Even legitimate NIL offers can contain terms that hurt your student-athlete down the road. These are the provisions families overlook most often—and regret later.
Exclusivity Clauses That Outlast the Opportunity
A local sports drink brand offers your 16-year-old $2,000 and free product. Sounds great—until you realize the three-year exclusivity clause blocks them from signing with Gatorade or Body Armor when a Division I scholarship puts them on the national radar. Exclusivity provisions aren’t inherently bad, but the duration should match the value of the deal. A modest payout shouldn’t lock your student-athlete out of major opportunities for years.
Intellectual Property Grabs
The two-sentence IP clause buried on page four might grant a company the right to use your child’s name, image, and likeness forever, anywhere, for any purpose. Some agreements allow brands to alter photos, use footage in contexts the athlete never anticipated, or sublicense rights to third parties. Before signing, know exactly how long these rights last, where the content can appear, and whether your student-athlete can approve (or reject) specific uses.
Vague or Back-Loaded Compensation
“Exposure” isn’t payment. Neither is a box of merchandise or a promise of “future compensation based on performance metrics.” Legitimate NIL contracts state exactly what the student-athlete will be paid, when payment is due, and what conditions (if any) must be met. If the compensation section requires a law degree to decode—or relies heavily on undefined bonuses—that’s a red flag. Your child is providing real value; the contract should provide real, clearly defined compensation in return.
State-Specific Protections in Oregon and Nebraska
Both Oregon and Nebraska have enacted laws to protect student-athletes participating in NIL activities—but understanding which rules apply to your child depends on whether they’re in high school or college.
College Student-Athletes: State Law Applies
Oregon law (ORS 702) allows student-athletes to receive education about their NIL rights and prohibits schools from penalizing athletes for compliant NIL activities. Nebraska (Neb. Rev. Stat. § 48-3603) provides similar protections. Both states mandate contract transparency, helping ensure student-athletes understand what they’re signing before they commit. These laws apply specifically to post-secondary education settings, and both states continue updating their statutes as the NIL landscape evolves.
High School Student-Athletes: Different Rules Entirely
If your child is still in high school, the state NIL statutes don’t govern their situation. Instead, high school student-athletes fall under the authority of the Oregon School Activities Association (OSAA) or the Nebraska School Activities Association (NSAA). These organizations have their own NIL rules—separate from state law—that families must follow to protect eligibility.
The NCAA Wildcard
Here’s where it gets complicated. NCAA rules apply to any student-athlete who may eventually compete at the college level—even if they haven’t enrolled yet. An NIL contract signed at 16 that complies with OSAA or NSAA rules could still violate NCAA guidelines and jeopardize your child’s future college eligibility.
The catch: the NCAA doesn’t enforce its rules against high school student-athletes directly. Your child won’t receive a warning letter at 17. Instead, the problem surfaces years later when they’re trying to suit up for a college program and discover that a deal they signed as a minor created a compliance issue.
This is precisely why professional legal review is essential for any minor considering an NIL deal. The rules are layered, the stakes are high, and the consequences may not appear until it’s too late to fix them.
Protecting Your Young Athlete
An NIL opportunity can launch your child’s personal brand—or saddle them with obligations they’ll regret for years. Before anyone signs anything, take these steps to protect your student-athlete’s future.
Get Legal Review Before You Sign—Not After
A contract that looks straightforward often isn’t. Problematic terms hide in dense paragraphs: overly broad IP assignments, exclusivity clauses that outlast the deal’s value, or performance requirements your child can’t realistically meet. By the time you spot the issue, you’ve already co-signed and assumed liability.
An experienced NIL attorney can identify these red flags, explain what each provision actually means, and negotiate better terms before you’re locked in. The cost of a contract review is a fraction of what a bad deal could cost your family down the road.
Think Beyond This Deal
The offer in front of you today may look completely different against your student-athlete’s trajectory in two or three years. A regional brand partnership that seems exciting now could block a national sponsorship once your child reaches a bigger stage.
Whenever possible, favor short-term agreements with renewal options over long-term commitments. This gives your student-athlete flexibility to renegotiate as their profile—and market value—grows. If a company insists on a multi-year term, make sure the compensation reflects that commitment.
Establish Financial Habits Early
NIL income is taxable income—even for minors. Your student-athlete may owe federal and state taxes on earnings, and the IRS doesn’t care that they’re 16. Keep detailed records of every payment, product received, and expense related to NIL activities.
Beyond tax compliance, early earnings are an opportunity to build financial literacy. Helping your child understand where their money goes, how to save, and what obligations come with income sets them up for long-term success—whether or not athletics remains their primary career.
Work With The Hughes Companies for Peace of Mind
Attorney Michael R. Hughes understands the unique challenges families face when their young athletes receive NIL offers. As a licensed sports agent and attorney in both Oregon and Nebraska, he can review contracts, negotiate terms, and ensure compliance with all applicable rules. Contact The Hughes Companies for a free consultation to protect your student-athlete’s interests.