The Legal Edge: NIL
Issue Date: October 3, 2025 | Issue #15
A Quick Welcome from the Founder
Welcome to Issue #15: The Team, The Trust, The Money! The NIL era has brought amazing opportunities, but deciding who to trust is the biggest choice you'll make. This is your guide to understanding the various agents and advisors you'll encounter, how to confidently vet their experience, and what their compensation models truly mean for your bottom line. Let's make sure the team you build is the right foundation for your long-term success!
Stay informed, stay empowered!
Sincerely,
Rebekah Ballard
This Week’s Strategic Insight
Who's on Your Bench? The 4 Must-Have Roles in Your NIL Team
NIL is opening doors to opportunities that didn't exist just a few years ago. But with these opportunities comes a critical question: who do you trust to help navigate this new terrain?
Whether you're an athlete fielding your first brand deal or a parent helping an athlete make informed decisions, understanding the role of agents and advisors is essential. The right team can amplify your success.
Building Your Team: Define the Roles
In the NIL world, no single person handles everything. You'll build a team of professionals, each with a specialized role:
NIL Agents/Representatives secure endorsement deals, negotiate contracts, and manage brand partnerships.
Financial Advisors guide you on managing NIL income, tax planning, and investment strategies for long-term financial health.
Marketing Professionals build your personal brand, manage your social media presence, and create content to attract sponsors.
Attorneys review contracts, negotiate terms, and ensure compliance with NCAA and state regulations.
Be wary of anyone claiming to be a "one-stop shop" who lacks proper credentials in all these distinct areas.
The Trust Factor: What to Look For
Trust goes deeper than a good vibe; it’s built on competence, transparency, and a focus on your best interest.
Experience: Ask about their specific history in NIL. How many athletes do they represent, and can they provide client references?
Transparency: A good professional educates their client. They should explain compensation and contract terms clearly, without relying on confusing language.
Fiduciary Standards: For financial advice, understand if the advisor is held to a fiduciary standard, meaning they are legally required to put your financial interests first, even above their own pay.
Conflicts of Interest: Ask upfront if they receive any kickbacks or commissions from brands or products they recommend. You deserve to know how their pay might influence their advice.
The Money: Understanding Compensation Models
How your team gets paid directly shapes the advice you receive, so understanding the fee structure is crucial.
Commission-Based: Most NIL agents take a percentage (typically 10-20%) of the deals they negotiate. This motivates them to maximize your earnings but may sometimes encourage short-term deals over long-term fit.
Flat Fees/Retainers: Some professionals charge a set monthly or annual fee, which allows them to offer more objective advice since their pay is not tied to the size of a specific deal. However, if this is the fee structure for your agent, this has its own draw backs as well as you would be responsible or the fee even if do not get a deal.
Hourly Rates: Attorneys typically bill hourly for contract review and legal services. Some will also use retainers and subtract their hourly rate from the retainer as they go.
Hybrid Models: These combine elements, such as a small retainer plus a reduced commission. Some will use retainers and subtract their hourly rate from the retainer as they go with the client being responsible for making sure their “account” has enough money to pay the attorney.
Always get the entire fee structure in writing. Remember: the lowest cost doesn't guarantee the best value, but transparency is non-negotiable.
Watch out for:
Pressure to sign quickly without time to review
Promises that sound too good to be true
Reluctance to put terms in writing
Requests for money upfront before delivering results
Anyone discouraging you from seeking second opinions
Look for:
Licensed professionals in their respective fields
Willingness to work with your existing team (family, school compliance, other advisors)
Clear, written agreements outlining services and fees
Proactive communication and regular updates
References you can actually check
Why This Matters?
The decisions you make about agents and advisors today can impact your finances, reputation, and opportunities for years to come. Getting it right now sets the foundation for success both during and after your athletic career.
A team is not a group of people who work together. A team is a group of people who trust each other.
The Athlete Playbook
What You Can Do Today
Audit Your Current Needs - Write down what type of support you actually need right now. Are you managing multiple deals that require professional representation, or are you just starting out with one local partnership? Match your team to your actual situation, not what you think you should have.
Schedule Compliance Check-Ins - Before hiring anyone, meet with your school's compliance office. Understand what regulations apply to your specific sport, conference, and state. Keep their contact information handy—you'll need it when reviewing opportunities.
Create Your Interview Questions - Develop a standard list of questions to ask every potential agent or advisor: their experience with NIL deals, fee structure, references, conflicts of interest, and how they'll communicate with you. Consistency helps you compare candidates objectively.
Request Everything in Writing - Start a habit today: every agreement, fee structure, and service promise should be documented. Create a dedicated folder (digital or physical) for all contracts, correspondence, and financial records related to your NIL activities.
Build Your Advisory Circle - Identify three trusted people outside of paid professionals—perhaps a parent, mentor, coach, or family friend with business experience—who can serve as a sounding board before you make major decisions. Sometimes the best advice is free.
NIL Quick Hits
Senate Bill Aims to Create National NIL Framework
The Story: U.S. Senators recently proposed a federal bill to create uniform NIL rights and protections across all states, bypassing the current inconsistent patchwork of state-level laws.
The Impact: The goal is to standardize federal NIL rights, protections, and enforcement, bringing national clarity on transparency and compliance. SAFE Act introduced.
New Compliance Mandate for Clearer Contracts
The Story: Recent CSC guidance clarifies that contracts must be clear and transparent regarding compensation terms, contract length, and explicit links to services provided (not athletic performance).
The Impact: Schools, collectives, and athletes must adhere to new reporting and documentation standards to avoid penalties.
Collectives Under Scrutiny Over NIL Compliance
The Story: Reports suggest several NIL collectives have reportedly bypassed compliance rules, paying players before approval of their deals.
The Risk: This has triggered NCAA investigations and legal actions in late 2025, highlighting the need for strict adherence to school policies.
Broadcast Royalties Spark New Legal Fights
The Story: College Sports Litigation Tracker highlights high-profile litigation and settlements targeting both the future of broadcast rights and specific aspects like broadcast royalties and licensing, precluding compensation elsewhere.
The Impact: This highlights the need for precise language in all NIL contracts concerning usage rights and compensation procedures.
The Breakdown
Sarah's NIL Journey
Sarah, a sophomore volleyball player at a mid-sized university, landed her first significant NIL opportunity, a $15,000 deal with a regional athletic apparel company. Excited but overwhelmed, she reached out to an agent who had been messaging her on social media for months.
The agent promised to "handle everything" for a 25% commission and pressured Sarah to sign immediately, claiming other athletes were competing for the same deal. He sent a multi-page contract via text and said she needed to respond by end of day. Sarah felt uneasy but didn't want to lose the opportunity.
The Legal Edge’s Take
Sarah's instincts were spot on. When someone pressures you to make a major decision without time to think, consult advisors, or review terms carefully, that's a red flag. Legitimate opportunities don't evaporate in 24 hours, and professional agents understand that athletes need time for due diligence.
The discomfort Sarah felt wasn't nervousness about a big opportunity; it was her intuition recognizing manipulative tactics. Before signing anything, she should:
Pause;
Involve her compliance office/family;
Compare this agent's terms to industry standards; and
Remember that walking away from a bad deal is always better than being locked into one.
Trust your gut, and never let fear of missing out override your need to make informed decisions.
Legal Lingo Explained
What is a ‘Fiduciary Duty’?
A fiduciary duty is a legal obligation that requires someone to put your interests ahead of their own. If your advisor is a fiduciary, they must recommend what's best for you, even if it means they make less money.
Why Does This Matters for NIL?
Not all agents and advisors operate under a fiduciary duty. Some work under a "suitability" standard, which only requires them to recommend options that are generally appropriate, not necessarily the best available.
Example: You're choosing between two endorsement deals. Deal A pays you $20,000 with a 15% agent commission. Deal B pays you $18,000 with a 20% agent commission. A fiduciary must recommend Deal A because it's better for you. An advisor under suitability standards could recommend Deal B because it's "suitable," even though their higher commission influences the choice.
How to Find Out
Ask directly: "Do you have a fiduciary duty to me?" Legitimate professionals will answer clearly.
Get it in writing: Request that their fiduciary obligation be stated in your contract.
Check credentials: Registered Investment Advisors are held to fiduciary standards by law; broker-dealers typically aren't.
Watch for disclosure: Fiduciaries must disclose all conflicts of interest. Vagueness is a red flag.
Understanding fiduciary duty gives you leverage to separate professionals who are truly in your corner from those who aren't.
Your Toolkit
Athlete Pro Tip
Before signing any contract, make sure the team you hire operates under a fiduciary standard, legally committing them to putting your financial interests above their own.
Mailbag Room
Q: What is the primary legal threat to an international student-athlete's F-1 visa status when they sign an NIL deal, as highlighted in the recent lawsuit by LSU’s Last-Tear Poa?
A: The major threat is the federal government’s broad definition of “employment.” F-1 visas prohibit non-authorized, off-campus work. The lawsuit by former LSU guard Last-Tear Poa highlights that compensation for active NIL services (like promotions or appearances) is often considered unauthorized employment by USCIS, which could lead to visa revocation and deportation, even though NIL is not classified as "pay-for-play."
What’s Next?
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Next week, we are covering: The New Audit Risk: Decoding 'Fair Market Value' and NIL-Go
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Disclaimer: This newsletter provides educational insights and general information related to the legal side of Name, Image, and Likeness (NIL). It does not constitute legal, financial, or professional advice, and should not be relied upon as such. This content is for informational purposes only, and you should always consult with a qualified professionals for advice tailored to your specific situation.
NIL laws are constantly evolving, and the information provided might not be the most current at all times.