Buyout Clause
Also known as: Buyout
In plain English
A buyout clause lets one side end the contract early by paying a fixed or formula-based settlement amount.
Full definition
A buyout clause allows either party — usually the party walking away — to end the contract before the natural term in exchange for a defined settlement payment. In NIL contracts, buyouts most often come up when an athlete signs a multi-year deal and then receives a much larger competing offer, or when a brand wants to end an underperforming partnership without litigating breach. The buyout amount can be a flat dollar figure, a percentage of remaining compensation, a multiple of monthly fees, or a sliding scale that decreases over the life of the deal. Athletes should be wary of buyouts that exceed total compensation under the contract — that turns the deal into a debt obligation. Buyouts are sometimes paired with liquidated damages provisions; the two should not stack.
What it looks like in a contract
Athlete may terminate this Agreement at any time during the Term by paying Company a buyout fee equal to fifty percent (50%) of the remaining compensation that would have been earned through the natural expiration of the Term, payable within thirty (30) days of notice.
Synthesised from common contract patterns. Not lifted from any specific real contract.
How RevU helps
RevU's NIL contract analyzer detects buyout clause provisions automatically — flagging the exact triggering language, scoring athlete-vs-brand friendliness, and surfacing negotiation leverage where it exists. See How RevU flags buyout exposure for the full product context.
Check your contract freeRelated terms
Liquidated Damages
Liquidated damages are a predetermined amount you have to pay if you breach the contract — fixed in advance instead of calculated later.
Termination Clause
The termination clause spells out exactly how either side can end the contract — and what happens if they do.
Renegotiation Clause
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.
Cap on Liability
A cap on liability is the maximum total amount one side can be forced to pay if something goes wrong.