Just like signing your NLI (national letter of intent), signing an NIL agreement can make a huge impact on your life as an athlete. Before you sign any contract, have a few questions prepared, a step that can help save you a lot of time and energy down the run.
11 Questions Athletes Must Ask Before Signing an NIL Contract
- What does the company’s mission statement, value or culture look like? Does it match with your values?
- What does the contract look like? How long is the term (or the longevity of the contract). Will signing this contract come with an exclusivity cause, preventing you from partnering with other brands?
- How does the company intend to use your NIL? Will you be able to control the type of content you create and have influence on how you are portrayed? *Side note- if you’ve trademarked your NIL, you’ll officially own in. Trademarking can protect people or companies from using your name or logo for profit without your permission.
- What does the time commitment look like? Will you be expected to create content weekly, make appearances on behalf of the company, or other tasks? One of my busiest times in life was when I was a student athlete, having to balance school work, training, competitions and more. Make sure you fully understand the time commitment that is expected of you as an NIL earner.
- How will you get paid? How much money will you earn from this NIL deal and what are the payment terms? Will you be paid in cash, in-kind services, affiliate money, products, etc.?
- Will the company or brand provide any incentives? For example, if you exceed a goal or a performance target, will you receive a bonus or additional compensation?
- Will signing this deal affect my financial aid? If you are at risk of loosing your scholarship or financial aid money with a really great NIL deal, you’ll want to make sure your NIL earnings can cover the cost of your education… and some.
- Have you considered taxes? If you make a solid amount of NIL money, be prepared to pay taxes. Athletes who understand how taxes work and are prepared will prevent having to scramble during tax season.
- What does a companies track record look like? Can they give you examples of work they’ve done with other athletes to show you how those partnerships went?
- Are there any negatives or risks associated with this NIL partnership? Long term, could your personal or professional brand be affected if the partnership doesn’t work out?