Protecting Your Name, Image, and Likeness: Avoiding Long-Term Sacrifices for Short-Term Gains
An athlete's Name, Image, and Likeness (NIL) is one of their most valuable assets. As one of my mentors once said, “Athletics is the greatest form of live entertainment,” and its popularity is only growing. With this rise in visibility, athletes must be cautious about how they leverage their NIL rights, ensuring they’re not sacrificing long-term potential for short-term financial gain.
The Danger of Signing Away NIL Rights Too Broadly
One of the biggest mistakes athletes make is agreeing to contracts that give away their NIL rights in perpetuity—meaning forever. While an upfront payout might seem enticing, signing over broad rights to a third party can significantly limit future opportunities.
Imagine a scenario where an athlete becomes more famous or their brand grows exponentially. If their NIL rights have been signed away indefinitely, they lose the ability to renegotiate terms or capitalize on their increased value. This kind of oversight can lead to significant frustration and missed opportunities down the line.
The Importance of Flexibility in Contracts
Athletes must prioritize flexibility when signing NIL agreements. Contracts should:
Be Time-Limited: Ensure that any use of NIL rights has a clear expiration date.
Include Scope Limitations: Specify exactly how the NIL can be used to avoid overreach.
Allow for Renegotiation: Retain the ability to revisit terms if circumstances change.
Without these safeguards, athletes risk being locked into unfavorable deals that don’t reflect their evolving value.
Why Professional Review is Critical
The worst-case scenario for an athlete is signing an NIL contract without proper legal or professional oversight. A contract may look straightforward, but its long-term implications can be far-reaching. A Jacobs Counsel attorney can:
Identify vague or overly broad language that could harm the athlete’s interests.
Negotiate terms that protect the athlete’s ability to capitalize on future opportunities.
Ensure that contracts align with the athlete’s goals and values.
Thinking Beyond the Present
Athletes, especially young ones, may focus on the immediate benefits of NIL deals without considering their long-term impact. However, the landscape of sports and entertainment is constantly changing. What seems like a good deal now may not serve the athlete’s best interests in the future.
For example, if an athlete signs away their NIL rights early in their career, they might find themselves unable to renegotiate when their popularity increases or if better opportunities arise. This is why it’s crucial to think ahead and plan for flexibility.
The Long-Term Perspective
While short-term gains can be tempting, athletes should prioritize their long-term success. Protecting NIL rights isn’t just about today’s contracts—it’s about ensuring the freedom to adapt and grow in an ever-changing industry.
Final Thoughts
Your NIL is a cornerstone of your personal brand, and safeguarding it requires thoughtful planning and professional guidance. Before signing any agreement, ensure that the terms protect your interests and allow you to capitalize on future opportunities.
At Jacobs Counsel, we have experience in reviewing and negotiating NIL contracts to protect athletes from pitfalls and maximize their long-term success. Contact us today to learn how we can help you navigate this critical aspect of your career.