NBC News reviewed a dozen NIL offers to high schoolers described by legal experts as predatory. Some included 40% commissions and contracts packed with legal traps. Here are the 10 red flags that appear most often — and what good language looks like instead.
The brand gets permanent, worldwide rights to use your kid's name, face, and likeness forever — even after the deal ends. No additional payment. No expiration.
Your athlete fires the agent, but the agent keeps taking 10-20% of their NIL earnings forever. Good agents earn from the deals they bring. If termination doesn't end payments, walk away.
"This offer expires in 24 hours." Real professionals give families time to review. Artificial urgency usually means hidden problems in the fine print.
"Athlete will be compensated as determined by the brand." No fixed amount. No payment date. No conditions. It's not a real offer — it's a trap.
The contract blocks your athlete from ALL deals in a category (like "all athletic footwear" or "all beverages"). This can cost them far more than the deal is worth.
The brand can cancel anytime for any reason. Your athlete is locked in. Some contracts give brands 8+ exit routes while giving the athlete zero. Mutual terms only.
Contracts that let the brand cancel based on a family member's behavior. Your mom's Facebook post shouldn't void your kid's NIL deal.
"Must reach 50K followers by season end." Compensation tied to speculative growth. Your kid gets paid only if they hit targets that may be unrealistic.
The contract doesn't say how either party can exit. No termination clause means you could be locked in indefinitely, even if the brand breaches the agreement.
Fees buried in small print: "5% processing fee," "3% platform fee," "agent cut." By the time you get paid, 30% has evaporated.
Not just big deals. Every deal. A one-hour consultation with a sports attorney costs $200–$500 and can save you tens of thousands and years of your child's earning potential. This is not optional. This is insurance. A bad contract can haunt your athlete for years.
Company retains perpetual and irrevocable rights to use Athlete's likeness worldwide in any media format including advertising, marketing, and merchandise without additional compensation.
Company may use Athlete's likeness in promotional materials for this campaign only. Rights expire 90 days after final payment. All rights revert to Athlete thereafter.
This agreement continues indefinitely until Company elects to terminate in writing. Athlete has no right to terminate except for cause.
Either party may terminate with 30 days' written notice if the other party materially breaches and does not cure the breach within 14 days of notice.
Athlete will receive compensation commensurate with performance and at Company's sole discretion, subject to approval of deliverables.
Company will pay Athlete $5,000 via bank transfer within 30 days of Athlete's completion of three Instagram posts totaling 100,000 impressions.
1. "What exactly am I agreeing to?" If the answer is vague or takes 30 minutes to explain, it's probably not a good deal.
2. "What happens if the brand stops paying?" Does your kid have a right to exit? Can they sue for payment?
3. "How long does the brand own the rights to my likeness?" If it's "forever," that's a predatory deal.
4. "What are all the fees?" Get a written breakdown of every fee and commission.
5. "Can I terminate this agreement?" If the answer is "no," it's one-sided.
6. "What if my circumstances change?" Can you exit if you're injured, move states, or the brand violates the agreement?
7. "Who approves content?" Does your kid have creative control, or does the brand have final say?
8. "What happens if the brand goes bankrupt?" Is payment guaranteed even if the company fails?
Who to hire: A sports law attorney or entertainment attorney with specific NIL contract experience. Look for lawyers who have advised student-athletes, not just professional athletes.
Where to find them: Ask your state bar association, check referrals from sports agencies, or search "NIL attorney [your state]." Many will do a free 15-minute consultation.
Cost: $200–$500 per hour. One hour of review typically costs less than 10% of most NIL deals. It's always worth it.
What to ask: "Have you reviewed NIL contracts before? Can you tell me if this language is predatory?" A good attorney will spot red flags immediately.
Answers to common questions about NIL contract terms and protections.