Name, Image, and Likeness (NIL) has changed college sports faster than anyone expected. Athletes can now earn money, build brands, and create leverage for opportunities far beyond the field or court. Unfortunately, there is now a new risk that many athletes and parents are not prepared for. Who is representing the athlete in NIL deals?

The term “NIL agent” is used loosely. Some agents have years of experience with contracts and compliance, while others are learning in real time.

Athletes and parents often assume that if someone is involved in NIL representation, they must know the rules, understand contracts, and be operating properly. That assumption is not always correct.

The newsletter breaks down the biggest issues athletes and parents should be paying attention to before trusting someone with NIL representation.

1. Is the NIL Agent Properly Registered?

This is one of the most basic questions, and one of the most frequently overlooked.

Even though NIL is new, NIL agents are still required to follow rules and regulations. Depending on the state and school, agents may be required to:

• Register with the state (and pay a fee)
• Register with the athlete’s university
• Submit an agent disclosure or certification form
• Certify compliance with NCAA and institutional NIL policies
• Follow specific conduct rules tied to athlete representation

Some agents complete these steps. Others do not. In many cases, athletes never think to ask.

Athletes and parents should ask questions like:

• Are you registered as an NIL agent where required?
• Have you submitted the school’s required agent forms?
• Have you represented athletes at this school before?
• Are you familiar with this school’s NIL approval process?

These questions are not aggressive. They are basic due diligence.

If an agent avoids the topic, gives vague answers, or treats registration as a technicality, those should be major red flags. Athletes should not risk eligibility because someone representing them failed to follow the rules.

2. Does the Agent Actually Understand Contracts?

This is where the most damage occurs.

Many NIL agents come from backgrounds in marketing, social media, recruiting, or influencer management. Those skills can be valuable when it comes to sourcing deals. They are not the same as understanding contracts.

Contracts are not just about how much money an athlete gets paid. They control:

• Who owns the athlete’s name, image, and likeness
• How long do those rights last
• What the athlete is allowed to do during the deal
• What happens if the relationship ends early
• What obligations survive after the deal is over

Across college sports, athletes are already signing NIL contracts without fully understanding what they are agreeing to. In many cases, those agreements give brands long-term control over how an athlete’s name, image, and likeness are used. This can include ongoing rights to photos and videos, ownership of content created during the deal, or the ability to reuse and repost materials indefinitely. Once those intellectual property rights are signed away, the brand, not the athlete, controls the content. That control can last indefinitely, leaving the athlete unable to license the content, earn future revenue from it, or use it in later partnerships, all because the contract allows the brand to do so.

In some situations, athletes participate in NIL activities without a signed contract at all. Deals are rushed, terms are exchanged through emails or DMs, and athletes are told the paperwork will be handled later. Once content is delivered or appearances are made, uncertainty quickly arises around payment terms, usage rights, how long the deal actually lasts, termination rights, and who is responsible if something goes wrong.

Instead of slowing the process down, some agents respond by cutting corners elsewhere, including relying on AI tools as a substitute for proper contract review. There is a growing belief in NIL that AI can replace careful analysis and accountability. That belief is dangerous.

Tools like ChatGPT can be useful for explaining general concepts, summarizing information, or helping athletes understand basic terminology. They are not designed to review contracts in real-world situations. AI cannot assess whether a contract complies with state NIL laws, NCAA guidance, or a specific university’s policies. It cannot identify school-specific conflicts, flag improper disclosures, or evaluate whether a deal violates institutional rules that could impact eligibility.

More importantly, AI cannot protect an athlete’s intellectual property. It cannot negotiate usage rights, limit licensing terms, or assess how long a brand’s control actually lasts. It cannot weigh whether a clause quietly gives away rights indefinitely or conflicts with other existing agreements. When something goes wrong, AI cannot take responsibility.

Despite this, some agents rely on AI-generated summaries instead of carefully reviewing contracts line by line. Others use AI to “spot check” agreements rather than fully understanding them. That approach misses the reality of NIL contracts: the most important terms are often buried in sections that look routine, technical, or unrelated to payment.

This becomes especially concerning when combined with the fact that some agents negotiating NIL deals have never meaningfully reviewed contracts before. Many focus almost entirely on compensation and ignore the rest of the agreement. They chase dollar amounts while overlooking exclusivity, termination rights, intellectual property ownership, post-deal obligations, and restrictions that follow the athlete long after the deal ends. The result is an athlete locked into terms they never intended and may not discover until it is too late.

AI can assist in understanding. It cannot replace experience, judgment, and accountability. Treating it as a substitute instead of a tool puts athletes at real risk.

3. What Percentage Is the Agent Taking?

Compensation structures in NIL representation vary widely, and many athletes do not fully understand how their agents are paid.

Athletes should clearly understand how their agent is being compensated. That includes knowing what percentage the agent takes, which revenue streams that percentage applies to, whether the compensation is documented in writing, and whether the agent is paid by the athlete, the brand, or both.

In practice, some agents take a percentage of traditional NIL opportunities, such as:

• Brand endorsement deals
• Social media campaigns
• Appearances
• Licensing agreements

Others go further and take money from sources athletes may not expect, including:

• NIL collective payments
• Revenue-sharing distributions
• Group licensing arrangements

Because compensation structures vary widely, athletes should ask direct questions before agreeing to representation:

• What money, if any, is taken from collective payments?
• What percentage applies to revenue-sharing distributions?
• Is money taken from deals the agent did not negotiate?
• Are you being paid by the brand in addition to the athlete?

If these questions cannot be answered clearly and in writing, that lack of transparency should raise concern.

4. Are Decisions Made For the Athlete or the Money?

This is one of the hardest issues for athletes and parents to evaluate, and is often the most important. Once money enters the picture, incentives change. Some NIL agents are paid based on volume or percentages, which can quietly shift their focus away from what is best for the athlete and toward what closes fastest.

In those situations, agents may push quick deals, prioritize short-term payouts, accept restrictive terms to move agreements along, or encourage constant movement, including transfers, because new schools, new collectives, and new opportunities often mean new commissions. That approach can generate money in the moment while limiting an athlete’s long-term options, stability, and brand value.

Parents play a critical role here. Athletes are focused on playing, training, and competing. Parents are often the ones asking whether a deal actually makes sense, whether a transfer is the right move, and whether the advice being given is about development or dollars. When an agent’s recommendations consistently align with actions that increase their own compensation, families should pause and reassess.

Athletes and parents should pay close attention to how deals are evaluated. The conversation should not revolve only around money. It should include whether the brand aligns with the athlete, how the deal affects reputation, who controls intellectual property, how agreements interact with each other, and what opportunities remain after college. If none of that is being discussed, something is missing.

There are also warning signs families should not ignore:

• Pressure to sign quickly without a full explanation
• Discouraging questions or second opinions
• Dismissing long-term consequences as “overthinking”
• Framing deals or transfers as “too good to pass up”

Good representation values clarity over speed and stability over constant movement.

What Athletes and Parents Should Take Away From This

NIL representation is not just about landing deals. It is about who controls an athlete’s name, image, likeness, content, money, and future options.

The mistakes outlined above are already happening. Athletes are signing contracts they do not fully understand. Content creators are giving away intellectual property without realizing it. Agents are collecting percentages without clearly explaining from where or why. Some representatives are focused on closing deals quickly instead of protecting long-term value.

These issues rarely show up immediately. They surface months or years later, when an athlete wants to switch brands, reuse content, build a personal platform, or pursue opportunities after college.

By then, the contract is already signed.

Athletes and parents should slow the process down and ask direct questions about:

• Registration and compliance
• Contract experience and review
• Intellectual property ownership
• Compensation structure
• Incentives and priorities

A good NIL representative should be comfortable answering those questions clearly and in writing. Hesitation, deflection, or pressure to “just sign” should never be ignored.

NIL is one of the most powerful tools college athletes have ever been given. Used correctly, it can create leverage far beyond sports. Used carelessly, it can limit opportunities before an athlete even realizes it.

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