What Red Flags Should You Look For Before Signing a College NIL/Revenue Share Contract?

I recently reviewed a NIL/revenue share agreement generated by a college program for one of our recruited athletes and flagged numerous issues and areas of exposure for the athlete. This is from a school that the athlete was considering committing to in his recruiting. Believe it or not, my analysis of the issues and areas of exposure ran longer than the contract itself. This should tell you something about the state of college athletics and recruiting -- BUYER BEWARE!

If you or your athlete has a NIL or Revenue Share contract awaiting your signature, do not sign it yet. Not until someone who possesses expertise in NIL contracts has combed through it. Here are some common issues to look for, and why it matters more than most families realize.

These Contracts Are One Sided, and Not in Your FavorI will say this plainly: every NIL and revenue share agreement I have reviewed is structured heavily, in some cases egregiously, in favor of the college.

A primary cause of this reality is that there is no standard contract across college athletics largely because there is no collective bargaining in place to enable protection for athletes from usurious contracts. They are written in legalese, complicated and packed with references to issues and matters that are beyond the capabilities of most athletes and parents, let alone a 17 or 18 year old who has never read a contract in their life. They are intended, whether anyone at the college would admit it or not, to take advantage of the athlete’s understandable naivete and inexperience.

One sided terms plus dense legalese is exactly how the worst clauses are able to pass through ignored or misunderstood, compounded by the absence of qualified athlete representation and protection. As we wrote about in Why is College Football's NIL Model a House of Cards?, the entire system is currently moving faster than athletes’ capability to organize to protect themselves.

Here is the part that deeply disturbs me about the realities of today’s recruiting process — a coach will look your athlete in the eye — they will tell them how much they want them, how much they care about them, how their program is going to look out for and develop them. Then the contract shows up — it communicates something entirely different. It says: we will take advantage of every opportunity to void our payment obligations to you, we are not going to protect you if things go wrong, and we will cast you adrift at any time for any reason that we manufacture at our discretion.

What gets promised by coaches during a recruiting visit is not documented. It is not binding and it does not have to match what actually gets put in writing. The contract is the only part that is enforceable, and it is the only part that matters once you have signed.

And here is the part that makes it worse: a lot of athletes commit to a school, verbally or otherwise, before they have even seen the NIL or revenue share contract. This puts you in a position of weakness. You do not owe anyone a NIL contract commitment, and you certainly do not owe them one sight unseen.

Negotiate

Get the actual contract terms. Negotiate them to limit potential damages and exposure before you commit or turn down another offer. Don’t give in to pressure to sign prematurely. Once you have committed, your negotiating leverage is eliminated.

Red Flag 1: Ambiguous Revenue-Share Commitment

All of your compensation terms should be specific, clearly defined and from a university guaranteed source, not on the come from some contingent income source. If elements are unspecified, the college could later treat that part of your compensation as discretionary, meaning the money you expected may be significantly less.

Red Flag 2: Loss of Control Over Your Own Name and Image and Likeness Rights

These agreements grant the college broad rights to your name, image and likeness, meaning they can hand your NIL rights to other parties without needing your approval, and limit your own usage. Nothing in this space should be open ended and unrestricted.

Red Flag 3: Performance or Conduct — Withholding Payments and Eligibility With No Due Process

Beware of terms that let a college stop paying you or suspend you without the opportunity to defend yourself prior to enforcement of any penalty.

Red Flag 4: More Restrictive Obligations Than NCAA or Rule of Law Allows

Contracts try to impose obligations on athletes that are more burdensome than what the NCAA’s own rules already require, such as transfer portal rules. A school inserting its own differing requirements is the school claiming ownership over your freedoms that are not actually theirs to control. It is worth revisiting what we wrote in How Does the Wilson Case Expose Hypocrisy of College Sports Contracts? — coaches leave freely and are often rewarded for it, while athletes face contractual penalties for doing the same thing.

Red Flag 5: Independent Contractor Status That Does Not Match Reality

Colleges go out of their way to classify athletes as independent contractors while imposing restrictions that align with employee status. Schools can’t have it both ways.

Red Flag 6: Lack of Injury Protection

Contracts that stay silent or restrict compensation or reimbursement if the athlete gets hurt explicitly provide the college with an out to reduce, delay, or stop paying. In addition, coverage for health care should be addressed. The financial risk of an injury should not land on the athlete instead of the institution.

Red Flag 7: Demands Stricter Than What the NCAA Actually Requires

Contracts add restrictions well beyond what the NCAA and College Sports Commission actually require, presenting them as mandatory when they are not or yet to be resolved. That leaves you agreeing to obligations tighter than the rules that are supposed to govern your eligibility and compensation.

Red Flag 8: Clawbacks and Performance-Based Payment Adjustments

Do not allow claw back provisions, particularly when a transfer is involved. This is functionally the same as a non-compete clause that punishes an employee for quitting to join a rival, except here it is aimed at a college athlete choosing to play somewhere else.

Also watch for language that lets the school adjust your payment based on subjective terms. This gives a school enormous leverage to reduce what it owes you, or demand money back, using standards it gets to set on its own.

Why Expert Representation Matters

There is no licensing, certification or credentialing requirement for player agents or NIL advisors in college athletics. Anyone can put that title on a business card and charge unlimited fees. That matters because these contracts are being negotiated, on the other side, by university compliance offices and legal counsel who do this for a living. An athlete and family deserve representation with real expertise, not just bluster and self-promotion. Be skeptical of anyone who does not deliver proven experience and references.

Why Contract Protection Cannot Wait Until After You Commit

Every one of these issues is negotiable before signing the contract, especially if you have other offers to leverage. Almost none of them are fixable after. Committing to a school before a knowledgeable third party has actually reviewed the language is one of the more common, and most avoidable, mistakes I see families make during the recruiting process.

For High School Coaches and Counselors

You do not need to become a contract expert and you should not feel compelled to give legal advice as it opens you up to liability. But you are often the first person a family turns to when an offer occurs. Knowing these red flags exist, and knowing to tell a family “get this reviewed by an expert before you sign anything,” is the best advice that you can provide.

George’s Take

“These documents are drafted in a complicated format on purpose to bully and intimidate the athlete with highly onerous and one-sided terms in favor of the university in a take it or leave it approach. It must be reviewed with a fine tooth comb because the college is shotgunning terms camouflaged under a flood of legalese and references that overwhelm and compromise athletes and families. My advice is emphatic: Do not sign anything and do not commit until the agreement has been dissected by an expert in this niche. Remember, your NIL or revenue share contract is a business negotiation in the current environment. You can’t rely on just a handshake agreement with the coach.” — George White, Founder and CEO, RecruitU

Frequently Asked Questions

Can a college really classify my athlete as an independent contractor?
Yes, colleges are doing this deliberately, but the classification needs to actually match how the relationship works in practice. Restrictions that mirror employment while the contract denies employment status are worth raising with someone who understands the distinction.

Is it normal for a revenue-share percentage to be left blank in a draft contract?
It happens more often than families expect, but it should never be signed that way. An undefined percentage with no attached schedule is not a minor detail, it can mean that part of the compensation is not actually enforceable.

What should I do if I already signed something without a full review?
Have it reviewed anyway, plus it positions you to be better prepared to negotiate your next contract. Some issues can still be addressed, renegotiated, or, at minimum, understood clearly, even after signing.

Is this only an issue at big Division I programs?
No. We are seeing versions of these same issues across division levels, wherever NIL and revenue share agreements are being used.

How long does a contract review usually take?
It depends on the contract, but families should factor a few weeks’ review and negotiation period before signing, not attempt this the night before a decision is due.

Before You Sign Anything
RecruitU reviews NIL and revenue share contracts for athletes and families before they commit to anything. We tell you plainly what is acceptable, what is a red flag, and what needs to change before you sign.

Contact RecruitU for a Contract Review →This article is for informational purposes only and does not constitute legal advice. Every NIL or revenue share contract should be reviewed by a qualified attorney, in addition to any guidance you receive elsewhere, before signing.