LIFESTYLE & TRAVEL

Avoiding Scams in NIL Deals

As a student-athlete, you may be able to profit off your name, image and likeness (NIL) via brand deals or sponsorships. This can be an exciting opportunity for students to explore their personal brand and make some money in college. However, there are a lot of aspects of NIL brand deals to navigate that leave room for students to be preyed upon by scammers. If you’re considering entering one of these deals, it’s important to stay informed to protect your future public image and financial well-being.

Evaluating Offers

When you first receive an offer, start by evaluating what the online presence of the brand is and what they are offering you. You should immediately ignore any offers that lack professionalism or that ask for login details or bank account information. It’s a good sign if the brand has previously collaborated with another athlete you know or have seen publicly. You can reach out to that person and ask about their experience to gauge if it’s a deal you would be interested in. Professional athletes often have more leverage with experience, financial stability, legal support and status that empower them in brand deals. Ultimately, having limited support and knowledge about the processes makes you more susceptible to brand deal scams, which is why staying informed throughout the signing process is of the utmost importance.

Beware of brands requesting you to purchase their product first and promising reimbursement later. If they’re asking you to cover shipping fees and expenses or charging “collaboration fees,” it’s unlikely they are genuinely looking to work with you. A professional company interested in sponsoring athletes should be prepared to pay those athletes as if they were employees. Some brand deals offer payment via “exposure” or receiving product in return for work. While this could be a risk-free brand deal, evaluate if it’s worth your time and if that would be fair compensation for the work they’re asking for.

Negotiating

You’ve decided you want to pursue the deal. What now? If you’re contacted originally via social media messaging, move communication to email. This should steer conversations to be held in a more professional manner, and you will have a record of your exchanges. When you're in talks with a brand, you should always push to have a written contract. If there’s no contract, then you aren’t being protected legally in the case of failure of duties on either side. When negotiating a deal, discuss any decisions with your parents, trusted adults, an attorney or an agent. While an attorney or agent can offer the safest route, some agents do take large fees and could even take advantage of you as well. If there’s a red flag that stands out to you in your contract, don’t be afraid to ask questions! A brand that’s not willing to answer questions is probably not a brand you want to be working with.

It’s only natural that student athletes get excited about the idea of being famous and making money. But before jumping into deals, ask yourself if you like the brand. While getting a brand deal offer from any company is exciting, money isn’t everything. Will you like this brand in five years? Will this brand represent your values? Being associated with a bad brand could be something you regret later in life, especially if it reflects poorly on your character. You have to keep your head in the game when it comes to business decisions. Being mindful of the uncertainty around NIL deals will keep you successful in the long term.

Sources:

https://www.bloomberg.com/news/articles/2023-07-18/college-athletes-get-scammed-sign-away-their-likenesses

https://www.troutman.com/insights/how-ncaa-athletes-and-brands-can-avoid-big-mistakes-in-nil-influencer-agreements.html