What is Name Image Likeness (NIL)?

NIL stands for, “name, image likeness”. NIL is an athlete’s personal brand.  Companies can pay an athlete to use their name, image or likeness to benefit their company.

What is a License?

A license is the heart of any NIL deal.  A license is a permission to use something that belongs to someone else.  While athletes keep ownership of their NIL, they grant a license to a company to use their NIL in exchange for cash or other perks.

Have you seen these terms in your contract?

Term of the Deal 

This is how long the NIL agreement lasts.

Scope of License 

This is the set of rules in an NIL deal that defines how, where, and when a company can use an athlete’s name, image, or likeness, keeping the athlete in control.

Exclusive License 

This determines whether an athlete can work with competing brands.

Assignment 

This determines whether an athlete can transfer their NIL rights under the contract to someone else.

Force Majeure 

This protects the athlete and company by pausing or canceling the deal without penalty when big, unpredictable events make it impossible to keep going.

Non-Compete  

This prevents the athlete from signing deals with competing brands while they are under contract with a particular brand.

Non-Disparagement 

Generally, companies use this term to protect their reputation.  They want to prevent an athlete from saying anything negative about them or engaging in behavior that could harm their reputation.   

Notice 

This sets the amount of time and method of communication either the athlete or the company must give before making a big change. Notice always must be in writing and often mail is the only option, sometimes email is allowed too.

Termination 

This outlines how, when, and why the deal can end and be terminated by the athlete and/or the company.

Perpetuity

This decides whether a company can use an athlete’s name, image, or likeness forever.

Indemnification 

This protects both parties from legal trouble.

Independent Contractor 

This means the athlete is not an employee of the company they sign an NIL deal with.