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    How to Negotiate NIL Deals Like a Pro: Tips for Athletes - Athletes legal advice from Jacobs Counsel Law
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    How to Negotiate NIL Deals Like a Pro: Tips for Athletes

    April 14, 2024
    11 min read

    Key Takeaways

    • Know your value—research comparable deals before negotiating
    • Exclusivity costs money—if they want exclusive rights, price accordingly
    • Deliverables should be specific—vague terms lead to disputes
    • Get it in writing—verbal agreements aren't enforceable

    💰 NIL Deal Components to Negotiate

    ComponentWhat to Ask ForRed Flag
    Base PaymentGuaranteed minimum100% performance-based
    ExclusivityCategory-specific onlyIndustry-wide lockout
    Term Length1 year with renewal optionMulti-year with no exit
    Usage RightsTime-limited, defined scopePerpetual, unlimited use
    Approval RightsFinal say on contentNo approval required

    The opportunity to profit from your Name, Image, and Likeness (NIL) has transformed what it means to be a college athlete. It's a chance to build your brand, earn significant income, and set yourself up for future success. But with great opportunity comes great responsibility. An NIL deal is not just a handshake and a photo op—it's a business transaction governed by a legally binding contract.

    Many athletes, excited by their first big offer, rush to sign without fully understanding the terms. Don't make that mistake. This guide walks you through how to negotiate NIL deals like a professional.

    The Negotiation Mindset

    Before you even look at a contract, understand this: everything is negotiable. The first offer is rarely the best offer. Brands expect negotiation—and they respect athletes who advocate for themselves professionally.

    🎯 Negotiation Power Factors

    Your LeverageHow It HelpsHow to Demonstrate It
    Multiple OffersCreates competitive pressure"I'm evaluating several opportunities in this space"
    Engaged AudienceProves marketing valueShare engagement metrics, not just follower count
    Past PerformanceReduces brand riskPortfolio of previous successful partnerships
    Unique PositionDifferentiates youHighlight what makes your personal brand special
    Timeline FlexibilityShows you're not desperate"I need time to review this with my team"

    Key Terms to Negotiate

    Every NIL contract contains several negotiable elements. Here's where to focus your attention:

    💰 What to Negotiate (and How Much)

    Contract TermStarting PointWhat to Push For
    CompensationTheir initial offer20–50% higher, or add performance bonuses
    ExclusivityBroad category exclusivityNarrow to specific competitors only
    Usage RightsPerpetual rights to contentLimited to contract term + 6 months max
    DeliverablesVague expectationsSpecific numbers with revision limits
    Approval RightsBrand has final sayMutual approval on content featuring you
    TerminationHard to exit30-day notice with clear exit terms

    Red Flags in NIL Contracts

    🚨 Walk Away If You See These

    • Perpetual usage rights: They can use your likeness forever, even after you're no longer associated with them
    • Broad exclusivity: "Sports" exclusivity means you can't work with ANY sports brand
    • No termination clause: You're locked in with no way out
    • Morals clause without specifics: Vague language lets them exit for any reason
    • Assignment rights: They can transfer your contract to anyone
    • Guaranteed minimums without caps: "At least 5 posts per month" with no maximum
    • Verbal promises: "We'll definitely add that later" means nothing if it's not in writing

    The Negotiation Conversation

    Here's how to professionally push back on terms you don't like:

    💬 Scripts for Common Negotiations

    SituationWhat to Say
    Low initial offer"I appreciate the offer. Based on my engagement rates and the scope of work, I was expecting something closer to [X]. Is there flexibility here?"
    Broad exclusivity"I'm happy to agree to exclusivity with [specific competitor]. Could we narrow the exclusivity clause to direct competitors only?"
    Perpetual usage"I'd prefer to limit usage rights to the contract term plus 6 months. Happy to discuss an extension if we renew."
    Vague deliverables"Could we specify the exact number of posts, stories, and appearances? I want to make sure we're aligned on expectations."

    Your Pre-Signing Checklist

    ✅ Before You Sign Any NIL Deal

    • ☐ Read the entire contract (yes, all of it)
    • ☐ Have an attorney review the terms
    • ☐ Confirm exclusivity is narrowly defined
    • ☐ Verify usage rights expire with the contract
    • ☐ Check that deliverables are specific and capped
    • ☐ Ensure you have content approval rights
    • ☐ Understand the termination process
    • ☐ Get everything in writing (no verbal side deals)
    • ☐ Clear the deal with your school's compliance office
    • ☐ Keep a signed copy for your records

    Negotiating like a pro doesn't mean being aggressive—it means being informed, prepared, and professional. The best deals are ones where both sides feel they got value.

    Contact Jacobs Counsel to have an attorney review your next NIL contract.

    🏆

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