The NIL landscape today bears little resemblance to the version college athletes navigated when name, image, and likeness compensation first became legal in 2021. The 2025 House v. NCAA settlement, Florida’s revised state law, the rise of school-driven revenue sharing, and a new federal executive order have all reshaped what’s permissible, who pays for what, and where the legal landmines sit. Athletes and families in Florida are signing deals worth tens of thousands to millions of dollars, often without anyone reviewing the contract before it’s executed. The sports and entertainment team at Braslow Legal works with athletes and their families on exactly these agreements, and the patterns of trouble are predictable.
The Current Florida Framework, in Plain English
Florida was among the first states to pass an NIL law and remains one of the most active in regulating the space. The state’s most recent legislation, effective July 1, 2025, capped athlete agent commissions at 5 percent on deals with NIL collectives, required agents representing college athletes to hold a license from the Department of Business and Professional Regulation, and authorized certain high school athletes to earn NIL income with parental consent.
Layered on top of state law is the House v. NCAA settlement. Schools that opt in can now directly pay athletes from a revenue pool capped at roughly $20.5 million for the 2025-26 academic year. Third-party NIL deals above $600 must be reported through the NIL Go platform within five business days, and the College Sports Commission can flag arrangements that look like disguised pay-for-play.
A federal executive order issued in April 2026 added another layer, with an August 1, 2026 effective date. The order ties federal funding to compliance and points toward national rules that could supersede parts of state NIL law.
The Contract Pitfalls Showing Up Most Often
A signed contract is almost impossible to undo cleanly. The smart move is to identify the dangerous clauses before the pen moves.
Long-Term Assignments of Future Income
The cautionary example is already on the books in Florida. A former Gators defensive tackle signed an NIL deal in 2022 that obligated him to pay 15 percent of his pre-tax NFL earnings for 25 years in exchange for a one-time payment of about $437,000. He’s currently in court trying to void the agreement. Any contract that reaches into a future professional career deserves heightened scrutiny.
Exclusivity Clauses
A blanket exclusivity provision can prevent an athlete from signing with any competing brand in a defined category, sometimes broadly enough to block deals the athlete didn’t realize were off-limits. The narrower the category, the more freedom remains. Pay attention to how “competing products” is defined and how long the exclusivity runs.
Term Length and Auto-Renewals
A two-year term with a one-year auto-renewal clause is effectively a three-year deal unless someone calendars the non-renewal deadline and follows through. Some contracts include compounding renewals that quietly extend the relationship indefinitely.
Morality Provisions
Morals clauses give the brand or collective the right to terminate over conduct the company decides reflects badly on it. These are normal in endorsement deals, but the definitions vary widely. Vague language like “any conduct that disparages or reflects negatively” is broader and riskier than language tied to specific events such as arrest or conviction.
IP and Likeness Rights
Some contracts grant the brand perpetual rights to use the athlete’s name, image, and likeness, including for purposes beyond the active deal term. That can mean a former endorsement image keeps appearing in advertising long after the relationship has ended.
Tax Realities Most Athletes Don’t See Coming
Florida has no state income tax, which is one clear advantage of being a college athlete in the state. The federal picture is more complicated. NIL income is treated as self-employment income, meaning the athlete owes both income tax and self-employment tax (currently 15.3 percent on the first portion of net earnings). Quarterly estimated payments are usually required. Athletes who travel for competition can also trigger income tax in other states under so-called “jock tax” rules, depending on where the work was performed.
A few practical implications:
- An LLC or other entity can offer tax planning and liability advantages depending on deal volume
- Training, travel, agent fees, and certain equipment costs may be deductible business expenses
- Booster club or collective payments are not tax-free, even when framed as charitable
Tax planning before the first big check arrives saves real money later.
Attorney or Agent: The Roles Aren’t the Same
Florida law now requires agents who represent collegiate athletes for NIL purposes to be licensed by DBPR, and limits their commission on collective deals to 5 percent. Agents primarily find and negotiate opportunities. Attorneys review and structure contracts, advise on tax and entity formation, address state and federal compliance, and owe their clients fiduciary duties enforced by the Florida Bar.
For meaningful deals, both roles often add value. The agent surfaces the opportunity. The attorney makes sure the contract reflects what was promised and protects the athlete from terms that might surface years later. Conflicts can arise when one person plays both roles, or when the agent has a financial relationship with the collective on the other side of the table.
Before the Pen Moves at Braslow Legal
NIL contracts move fast, and the pressure to sign before reading is real. The sports and entertainment attorneys at Braslow Legal work with Florida athletes, their families, and the schools that support them to review NIL deals before they’re executed. Neil Braslow’s background includes work with the UFC and the Florida Panthers, and the firm regularly handles trademark, sponsorship, and endorsement matters across Florida and New Jersey. If you have a contract on your desk or anticipate one, the firm offers a complimentary 30-minute consultation through its website to walk through the terms before anything is signed.