The NIL Edge – May 23, 2025

This week’s edition of the NIL Edge highlights dozens of Red Flags that athletes and parents need to focus on when thinking about NIL and other endorsement deals.

NIL Red Flags: 32 Traps Every Athlete and Parent Needs to Avoid

The Name, Image, and Likeness era has opened doors for college and high school athletes like never before. With new opportunities, though, come new risks, and navigating this complex world without the right guidance can lead to costly mistakes.

From vague contracts and tax traps to sketchy agents and brand misalignment, there are countless ways for athletes to get burned. This post outlines 32 key red flags you need to watch for when considering or negotiating an NIL deal.

⚖️ LEGAL RED FLAGS

1. No Written Agreement

   Verbal promises don’t protect you. If it’s not in writing, it doesn’t count.

2. One-Sided Contracts

   If the agreement heavily favors the brand or collective with little protection for you, proceed with caution.

3. No Clear Scope or Duration

   If it’s unclear what’s required of you or how long the deal lasts, you’re walking into a trap.

4. No Right to Terminate

   You should never be locked into a deal where the other party can walk away but you can’t.

5. Unlimited Rights to Your Likeness

   Watch for terms like “in perpetuity” or “all media formats.” You may be giving away your image forever.

6. No IP Ownership Language

   Who owns the content you create? If it’s not clear, assume it’s not you.

7. Exclusivity with No Upside

   Exclusivity may limit your future opportunities—so make sure it comes with real value.

8. Foreign or Unfair Jurisdiction

   Beware contracts governed by legal systems you don’t understand or that are biased against you.

💰 FINANCIAL RED FLAGS

1. Too-Good-To-Be-True Compensation

   Big promises with little detail usually signal bad intentions.

2. No Payment Schedule

   If the deal doesn’t spell out when or how you get paid, you may never see the money.

3. Crypto or Equity-Only Deals

   These can be speculative and hard to value, especially if you need reliable income.

🏫 COMPLIANCE RED FLAGS

1. Violates NCAA, State, or School Rules

   Non-compliance can threaten your eligibility. Always ensure deals align with regulations.

2. No School Disclosure

   Some schools or states require NIL disclosure. Skipping this step can backfire fast.

💻 REPUTATION & BRAND RISK RED FLAGS

1. Controversial Brands

   Think twice and check applicable regs and laws before aligning with alcohol, gambling, or other potentially harmful industries.

2. Off-Brand Content

   A quick check for a few bucks might hurt your long-term credibility.

3. Unprofessional Brand Partners

   If their pitch looks like spam or their communication is sloppy, it’s likely not worth your time.

4. No Research on Who You’re Working With

   You’re a target for scammers. Google them. Ask around. Protect your reputation.

💸 REPRESENTATION RED FLAGS

1. No Transparency Around Fees

   You should know exactly what a representative charges and when.

2. Bundled Services With Conflicts

   Avoid firms that push services that benefit them more than they benefit you.

3. Friends or Family Acting as Agents Without Experience

   Good intentions don’t equal good representation. NIL is serious business—treat it that way.

4. Reasonable Fees

   Stories of agents charging astronomical fees are legendary. Agree only to reasonable fees.

💼 BUSINESS & LONG-TERM PLANNING RED FLAGS

1. No Business Structure

   You’re running a business. Without an LLC or similar structure, you could be personally liable.

2. No IP or Trademark Protection

   If your brand grows, others will want to profit off it. Protect yourself early.

3. No Long-Term Vision

   Don’t trade a quick check today for a better opportunity tomorrow.

4. Pro Eligibility Risks

   Some NIL terms may conflict with pro league rules. Understand what’s at stake.

5. Overcommitment

   Saying yes too often can hurt your performance and your reputation.

📱 DIGITAL & CYBERSECURITY RED FLAGS

1. Sharing Your Social Media Password

   Never give out your login credentials. Use secure third-party tools if others need access.

2. Suspicious Links or DMs

   If it looks off, it probably is. NIL scams often arrive via social media.

3. No Cyber Protections

   If you’re sharing content or data, find out how it’s being stored and secured.

💡 MINDSET & STRATEGY RED FLAGS

1. Chasing the Biggest Check

   It’s not always about the money. Look for fit, values, and strategic alignment.

2. Believing You’re “Too Small” for NIL

   Micro-influencers often build deeper engagement. Don’t count yourself out!

3. Letting NIL Distract from Your Goals

   You’re still a student and athlete first. NIL should enhance your journey, not derail it.

✔️ Final Thoughts

Your name, image, and likeness are valuable. Treat them that way. Every deal you sign has legal, financial, and reputational implications. Even one misstep can follow you for years.

The key is to slow down, ask questions, and get qualified advice before committing.

🚩 Reach out if you want to:

• Review a deal

• Build a personal NIL plan

• Protect your brand and future earnings

Stay informed. Stay ahead. That’s the NIL Edge.

Ready to build your NIL strategy with a coach who’s helped lawyers, executives, and athletes do just that? Reach out at judyselby.com.

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