It is not a secret that NIL has a direct role in the success of a college football program in the modern era. The money that used to exchange hands under the table is now out in the open. Numbers are inflated.
Teams with a greater backing in terms of NIL funds are able to pay more money to top talent. An ability to acquire top talent ultimately drives on-field results. It’s common sense.
While most high-level programs are taking an NFL-like approach to roster management and recruiting, with help of collectives, there are a lot of shady deals being made that reflect a false reality. They serve as a strong warning to high school athletes anyone who is set to put a pen to paper in the NIL space.
NIL is business.
SIGN AN AGENT! HIRE REPRESENTATION!
Darren Heitner, founder of Heitner Legal, is considered one of the top experts in the Name, Image and Likeness space. He recently reviewed a contract that was offered by a collective to an athlete.
It reflects a scary reality in how some of the NIL collectives are choosing to operate.
Just reviewed an #NIL agreement that allows the collective to terminate for any reason, or no reason, by providing Athlete with at least ten (10) days’ advance notice.
Upon termination, collective doesn’t have to pay out any more $ to Athlete.
Compensation is spread out over 11 months.
Sets up a situation where Athlete, without an understanding of the terms, may think he is getting X to commit, signs with the school, and then has the rug pulled.
— @DarrenHeitner on X, formerly known as Twitter
The athlete was offered an NIL deal that would essentially cease to exist 10 days after the collective decided that it was over. That could come at any time.
A college football recruit could be set to receive $1.5 million one day and $0 less than two weeks later— without explanation. Boom. Gone.
Now, it should be mentioned that the athlete was granted the same right to termination in the contract. However, that is far less detrimental than the other way around.
Collectives are pulling the rug on athletes who don’t know any better. Many of them are trying to go through the negotiating process on their own. That shouldn’t be the case.
Heed Heitner’s warning.
Hire an agent. Have a lawyer review the contract. Know what you’re signing!