Attorney
The deal is signed, and the social media post goes live. But three months later, a student-athlete learns the brand is still using their image in campaigns they never agreed to, and the contract’s termination clause gives them no clean way out. By then, the damage is done. Earning potential is locked up, compliance questions are mounting, and the agent who brokered the deal cannot offer legal advice to fix it.
These are the patterns a NIL contract attorney at The Hughes Companies sees regularly. When NIL contracts are negotiated without legal review, student-athletes often give up more than they gain. Attorney Michael Hughes, who is both a licensed attorney and registered sports agent, helps student-athletes and their families identify these contract problems and build agreements that protect their rights and their future.
Why Agent-Negotiated NIL Contracts Often Fall Short
Agents play a valuable role in the NIL ecosystem. They connect student-athletes with brands, negotiate deal terms, and help build visibility. But negotiating a deal and drafting a legally sound contract are two very different skills. Agents and lawyers serve different, albeit equally important, roles in the NIL process. Agents can help negotiate deals and connect athletes with brands, but they are not licensed to interpret legal language or provide legal advice.
That gap creates real risk. Without a thorough understanding of contract negotiation, financial management, brand strategy, and more, NIL agents may lock athletes into exploitative contracts, mismanage funds, or even damage the student-athlete’s brand through poor representation choices. Unlike professional sports, where player unions certify agents and standardize contracts, NIL agents and the athletes signing with them have no standard representation agreement. As a byproduct, representation agreements can vary greatly. Some agents even begin working with student-athletes without a written agreement at all.
This is not about replacing agents. It is about making sure a trained legal eye reviews every agreement before a student-athlete puts pen to paper.
The Most Common Contract Problems Lawyers Catch
When NIL contracts go through legal review for the first time, certain issues come up again and again. Here are the patterns that create the most risk for student-athletes:
Vague or Missing Termination Rights
Many contracts lack clear exit provisions, leaving student-athletes locked into deals even when a brand fails to deliver on its promises. A well-drafted agreement defines specific grounds for termination, notice periods, and what happens to existing content after the deal ends.
Overbroad Exclusivity Clauses
An athlete may unknowingly sign an exclusivity clause preventing them from accepting other sports-related endorsements, even those more lucrative. Exclusivity should be limited by scope, geography, and time.
Unclear Payment Terms and Timelines
A college basketball star signed a deal with unclear payout terms. Payments were delayed, and expected bonuses were never delivered due to vague contract language. Contracts must define how much, when, and under what conditions you’re paid.
Unlimited or Undefined Use of the Athlete’s Likeness
Contracts granting “use of name” without specifying media formats or durations often lead to disputes over unlimited content usage. Without defined boundaries, brands may continue using an athlete’s image indefinitely, even after the agreement expires.
Missing Compliance Language
NIL contracts must align with both NCAA rules and state law. Contracts that include performance bonuses tied to wins or playing time can cross into pay-for-play territory, which remains prohibited. An attorney ensures each deal includes proper compliance guardrails.
These are not obscure edge cases. They are structural problems that arise when contracts are built to close a deal rather than protect the person signing it.
The Compliance Landscape Is Getting More Complex
The regulatory environment around NIL has shifted dramatically, and the stakes for noncompliance are rising. On June 6, 2025, Judge Claudia Wilken of the U.S. District Court for the Northern District of California approved the landmark settlement in House v. NCAA. The House settlement will fundamentally shift the economics of college athletics, allowing schools to pay Division I players directly and ending the long-standing amateurism model.
As part of the settlement, the College Sports Commission (CSC) is an independent body established in 2025 to oversee and enforce compliance with rules governing student-athlete compensation in college sports, including institutional revenue sharing and third-party NIL agreements. All third-party NIL deals valued at $600 or more must now be reported through the NIL Go platform for review. Student-athletes who fail to report deals within 5 business days (or 14 days for transfers/prospects) via NIL Go risk ineligibility.
At the federal level, the FTC is seeking information from 20 universities about whether sports agents who work with student-athletes have complied with requirements of SPARTA, which requires specific disclosures to student-athletes and notice to schools. Agents must provide a student-athlete with a required disclosure, including specific language requirements, before entering into a contract. The stakes are high for sports agents with up to $53,088 in civil penalties for each violation of SPARTA.
Meanwhile, states enforce their own rules. It is a Class A misdemeanor for any person to conduct business as an athlete agent in the State of Oregon unless the person has a valid certificate of registration. The Oregon Department of Education may assess a civil penalty against an athlete agent not to exceed $25,000 for a violation. An agent who misses a registration requirement or disclosure deadline does not just put themselves at risk. They put the student-athlete’s eligibility on the line.
How Attorneys and Agents Can Work Together
The best outcomes happen when agents and attorneys collaborate. Agents bring market knowledge, brand relationships, and negotiation instincts. Attorneys bring legal analysis, contract drafting precision, and compliance expertise. The two skill sets are not in competition; they are complementary.
An attorney’s involvement does not slow down a deal. It strengthens it. When a lawyer reviews an NIL contract, they look for risks that are invisible to someone without legal training: enforceability gaps, intellectual property exposure, conflicts with existing team or university agreements, and language that could jeopardize a student-athlete’s eligibility. Only attorneys can ensure that a contract complies with state and federal laws, advise on enforceability, and represent athletes in disputes.
At The Hughes Companies, Attorney Michael Hughes operates as both a licensed attorney and a registered sports agent in Oregon and Nebraska. That dual perspective means student-athletes and their families get someone who understands both sides of the NIL process, from sourcing deals to ensuring every clause holds up under legal scrutiny.
Protect the Deal Before You Sign It
If you are a student-athlete, a parent, or an agent who wants to make sure an NIL contract is built to last, The Hughes Companies is here to help. We work alongside agents to strengthen deals, not replace them. Contact us today to schedule a consultation and make sure your next NIL agreement works for you, not against you.