07 / READ THE PAPERWORK
Anatomy of a revenue-share agreement
No two schools’ agreements look exactly alike — terms, amounts, and rights vary widely. But almost every one is built from the same ten parts. Learn the parts, and you can read any version a school puts in front of you. (Third-party NIL deals share many of the same parts.)
01
Parties & term
Names who’s paying and who’s getting paid — usually the university itself (sometimes a school-affiliated entity rather than the athletics department) and the athlete — plus how long the deal lasts. Terms often run by academic year, not calendar year.
Look for: the exact legal name of the payer, the start and end dates, and whether the deal renews automatically.
02
Compensation & payment schedule
The money: total amount, how it’s split up, and when each payment arrives — monthly, per semester, or tied to milestones.
Look for: what each payment is conditioned on — and what happens to unpaid amounts if you’re injured, benched, or leave the program.
03
NIL rights granted
What the school gets to use: typically a nonexclusive license to your name, image, and likeness — photos, highlights, jersey and merchandise sales, video games. Nonexclusive means you can still sign your own outside deals.
Look for: the exact categories covered, whether the grant is exclusive or nonexclusive, and whether the school can sublicense your rights to third parties like media partners or sponsors.
04
Athlete obligations
What you have to do in return: appearances, social posts, content shoots, community events. Legitimate deals spell these out specifically.
Look for: dated, countable deliverables — vague “promotional services as requested” is a red flag.
05
Transfer & roster consequences
What happens to the money and the rights if you transfer, lose your roster spot, or turn pro early. This is where the expensive surprises live.
Look for: whether payments stop or continue, whether granted rights revert to you, and any repayment or sit-out language.
06
Tax treatment
How the money is classified. Athletes are typically treated as independent contractors — no tax withholding, and you’re responsible for estimated payments.
Look for: who issues the tax forms (expect a 1099, not a W-2) and whether the school provides any tax guidance.
07
Termination
How either side can end the deal early, and what happens afterward. Schools usually reserve broader termination rights than athletes get.
Look for: termination for cause vs. without cause, required notice periods, and which obligations survive — rights licenses often do.
08
Dispute resolution
Where disagreements get settled. Many agreements require private arbitration instead of court — faster, but with limited appeal rights.
Look for: arbitration clauses, the venue, and who pays the costs.
09
Amendment & assignment
Whether terms can change after signing, and whether the school can hand the deal to someone else — a collective, a media partner, a conference entity.
Look for: unilateral amendment rights and assignment clauses; either can move the deal you signed into someone else’s hands.
10
Employee-status language
A statement about what you are not: nearly all agreements say you are not an employee of the university. That one sentence affects benefits, labor protections, and tax status.
Look for: exactly what status the agreement assigns you — and understand what rights that classification gives up before you sign.
General educational information only — not legal advice. Have a qualified professional review any agreement before signing.