NIL Deals for NCAA Athletes: Daniel Ain Discusses Safeguarding Student-Athletes’ Interests with “On SI”

As the college football transfer portal opened up last week, RPJ’s Daniel Ain spoke with On SI (Sports Illustrated) about legal issues athletes should consider as they pursue potentially more lucrative NIL deals via transferring, particularly when it comes to signing name, image, and likeness (“NIL”) contracts.

Mr. Ain was asked about the implications of the impending settlement of the House v. NCAA lawsuit, which would allow schools to pay athletes directly via revenue sharing. Mr. Ain highlighted risks schools may face depending on how they choose to structure these contracts, noting that “[d]epending on the degree of control exercised by schools over athletes, whether through contractual provisions or in practice, institutions may be exposed to claims that they function as the athletes’ employers . . . Provisions in the contracts requiring the athlete to pay a buyout fee if the athlete transfers schools (e.g., via the transfer portal) or that require the athlete to remain on a team’s roster could be problematic.”

Mr. Ain also cautioned athletes to thoroughly consider the terms of any NIL deal before entering into an agreement.  For example, Mr. Ain noted that “[a]thletes should always consider the services that they are required to provide and the specific NIL rights they are granting to third parties. What is the term of the NIL license? Can the athlete make deals with competitors, or are they granting exclusive rights?” Mr. Ain emphasized the importance of athletes receiving sound guidance from legal professionals, agents or other representatives to help them negotiate for optimal terms in their contracts.

Read the full On SI Article here: Expert Highlights Top NIL Considerations in College Football Transfer Portal Frenzy