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One dangerous word in NIL contracts

And why it’s critical to eliminate it in agreements

As with any NIL deal, it’s important to have a written contract in place. (Even for product-only deals that involve no cash considerations.)

Along with the agreed-upon terms of the partnership, there will be language you understand and don’t understand.

Therefore, it’s important to have your school’s NIL Director (if you have one) review the agreement, along with your agent (if you have one) or a legal/compliance professional from your school.

Additionally, when reviewing your contract, look out for this one word:

Perpetuity

• What does this mean?

  • According to Dictionary.com, perpetuity means, “endless or indefinitely long duration or existence.”

    • In simpler terms: A brand can use your content for as long as they would like and not compensate you.

• Why is this important?

  • Brands will ask you to create content featuring their products and/or services. (Which is standard.) However, a brand should only use your content in a specified period stated on the agreement and NOT for longer than that.

  • Essentially, you don’t want brands to use your content for months (or even years) based your contract date and continue to make money off your NIL while you are not getting compensated.

    • If you sign a 90 day partnership with a brand and the brand wants to use your content for 365 days, then the brand should compensate you for 365 days. If not, request in contract that the brand can only use your content for 90 days.

• Is there a similar word/words that mean the same thing?

  • ‘Exclusive’ or ‘Exclusivity’ also have somewhat similar meanings in this case.

  • For example: If a beverage company notes you cannot do another beverage NIL deal for a specified amount of time (ie., 90 days, 120 days, etc.) that is generally fine. However, if they state you have an exclusive partnership with no end date, then be leary of said partnership.

• What should I do if this language appears in an NIL deal?

  • Specify terms and conditions, stating the brand can you use your content for a set timeframe, and request the removal of any language related to perpetuity and/or exclusivity.

• What are standard usage terms?

  • While there is non industry standard, 90-180 days is pretty fair. Ensure your NIL partnerships have usage terms within this window.

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