NIL Contract Glossary

Also known as: Assignment

An anti-assignment clause restricts whether either side can transfer the contract to someone else.

An arbitration clause requires disputes to be settled by a private arbitrator instead of in court.

Audit rights give you the legal right to inspect the brand's books to make sure they paid you what you're actually owed.

Also known as: Buyout

A buyout clause lets one side end the contract early by paying a fixed or formula-based settlement amount.

Also known as: Limitation of Liability

A cap on liability is the maximum total amount one side can be forced to pay if something goes wrong.

Also known as: Governing Law

Choice of law is the clause that decides which state's laws will be used to interpret and enforce the contract.

A clawback lets the brand take back money it already paid you if certain bad things happen — usually a morality violation or breach.

Also known as: Cap on Compensation, Earnings Cap

A compensation cap is an upper limit on total earnings under the contract — no matter how many bonuses you trigger.

Also known as: NDA, Non-Disclosure Agreement

A confidentiality or NDA clause stops you from publicly discussing the deal terms, the brand's business, or any private information shared with you.

A conflict-of-interest clause requires you to avoid relationships or commitments that would compromise the brand partnership.

Also known as: Right to Cure

A cure period is the time you get to fix a breach before the other side can terminate the contract.

Also known as: FTC Disclosure, Sponsored Disclosure

A disclosure requirement is the obligation to clearly tell your audience when a post is paid for — usually with #ad or #sponsored.

The effective date is the date the contract officially starts — and the clock for every other deadline begins ticking.

An endorsement clause is the part of the contract where you promise to publicly promote a brand in exchange for money.

An exclusivity clause stops you from working with competing brands — usually within a defined category, region, or time window.

Force majeure is a clause that excuses performance when extraordinary events — natural disasters, pandemics, war — make the contract impossible.

Governing law is the specific law (usually a state's) that will be used to interpret the contract — paired with choice of law and venue.

Also known as: Perpetual License, Perpetual

"In perpetuity" means "forever" — and you almost never want to grant a brand the right to use your NIL forever.

Indemnification is a promise that one side will cover the other side's legal costs and damages if certain bad things happen.

Also known as: Intellectual Property Assignment, Work-for-Hire

An IP assignment transfers ownership of the content, ideas, or designs you create under the deal — usually to the brand.

Liquidated damages are a predetermined amount you have to pay if you breach the contract — fixed in advance instead of calculated later.

Also known as: Morals Clause, Conduct Clause

A morality clause lets the brand end your deal and sometimes claw back money if they decide your behaviour hurts their reputation.

Also known as: MFN

A most-favored-nation (MFN) clause guarantees you'll get terms at least as good as anyone else the brand signs in a similar deal.

Also known as: Name, Image, Likeness, Name Image and Likeness

NIL is your right to get paid for the use of your name, image, and likeness — unlocked for college athletes by the NCAA in 2021.

Also known as: NIL Go Reporting, NIL Go Clearinghouse

NIL Go is the NCAA's required clearinghouse — run by Deloitte — that reviews any NIL deal worth $600 or more for D1 athletes.

A non-compete bars you from working with competing brands — usually for a defined time after the deal ends.

A non-solicitation clause stops you from poaching the brand's employees, customers, or partners after the deal ends.

The notice period is how much advance warning the contract requires before one side can take a major action — usually termination.

Per-post compensation is a flat fee paid for each individual social-media post or piece of content you deliver.

A performance bonus is extra money you earn if you hit a defined athletic or commercial milestone.

A renegotiation clause lets either side reopen the deal terms when a defined trigger happens — like the athlete gaining major followers or winning a championship.

Also known as: Reps and Warranties

Representations and warranties are the promises each side makes about the facts that matter — like "I have the right to sign this deal" or "our product is safe."

The right of publicity is your legal control over how anyone else uses your name, image, or likeness for commercial purposes.

A royalty is a percentage of sales paid to you on each unit sold of a product tied to your NIL.

Severability is the rule that if one part of the contract is found illegal or unenforceable, the rest of the contract still applies.

Survival is the rule that lists which contract provisions stay in effect even after the deal ends.

Also known as: Restricted Period, Post-Term Period

A tail period is extra time after the contract ends where some of your obligations — usually non-compete or exclusivity — keep applying.

The termination clause spells out exactly how either side can end the contract — and what happens if they do.

Termination for cause lets one side end the contract because the other side breached it — usually after a notice and cure window.

Termination for convenience lets one side end the contract for any reason — no breach required — usually with notice.

A waiver clause says that letting a breach slide once doesn't mean you've given up your right to enforce the contract later.