Tell us a little about yourself and your law firm and what you do.
"I'm Darren Heitner, a sports attorney and the founder of Heitner Legal, P.L.L.C., a law firm with a focus on sports and entertainment law, intellectual property, and business transactions. I also serve as an adjunct professor at the University of Miami School of Law, teaching Name, Image, and Likeness (NIL). My firm specializes in helping athletes, entertainers, and businesses with their legal needs, with a particular emphasis on NIL matters for college athletes since the rule changes in 2021."
What does an NIL deal look like from your point of view—like a step-by-step of how it gets done?
"An NIL deal typically begins with an introduction between athlete and brand, either directly or through a third party. Once there's mutual interest, we negotiate terms including compensation, obligations, and duration. After agreement on key terms, we draft or revise the contract documenting these provisions. Before signing, we ensure compliance with state law, school policies, and NCAA regulations. Once executed, the athlete fulfills his/her obligations (content creation, appearances, etc.), and the brand provides the agreed-upon compensation."
Are there clauses like performance bonuses like in pro sports, or is that not allowed?
"Performance bonuses tied to athletic performance are not allowed in NIL deals as they would violate the "pay-for-play" prohibition. However, NIL contracts can include incentives based on marketing metrics such as social media engagement rates, audience growth, or completion of additional promotional activities. These must be clearly tied to the promotional value, not athletic achievement."
Here is a big difference between a coach's contract and an NIL contract. Mark Pope received a raise and an extension by making the Sweet 16 this year. That sort of thing would be illegal for an athlete.
What are the biggest risks for the players—and what protections exist for them and their schools?
"For athletes, the biggest risks include eligibility issues if deals violate regulations, unfair contract terms, non-payment, and overcommitment affecting academic/athletic performance. Protections include proper legal representation, clear contract terms, and disclosure to compliance offices. For schools, risks include compliance violations, conflicts with existing sponsorships, and brand association issues."
It would seem really easy for an athlete to get overextended doing NIL deals. A company offers an insane amount of money, but ties it to an exorbitant amount of appearances. Lawyers help the clients see beyond just the number on the check, and the impact it brings to them.
Can you share an example of a creative NIL concept you’ve encountered?
"One particularly creative NIL deal in the early days involved a college athlete partnering with a tech company to create a limited edition NFT collection that included exclusive digital content and real-world experiences with the athlete. The structure allowed fans to truly "own" a piece of the athlete's brand while creating a recurring revenue stream beyond the initial sale through smart contract royalties on secondary market transactions."
What do you anticipate happening with the 5-year NCAA eligibility rule, and how are you challenging it?
The NCAA five year rule is a rule that says an athlete has 5 years to perform 4 years of athletics. For example Tom commits to Kentucky football. He doesn't play in his first year, so he can redshirt. He now has 4 years to play. There are exceptions and challenges like medical waivers, but for the most part that is the rule. According to Heitner:
"The NCAA's 5-year eligibility clock appears increasingly untenable in the current legal environment. I believe it will likely face modification through litigation or NCAA reform. The challenges focus on antitrust grounds, arguing the rule artificially restricts athletes' ability to market their NIL value over a longer career."
What’s the biggest misconception fans have about NIL?
“The biggest misconception is that NIL is just a salary for playing sports,” Heitner says. NIL deals require athletes to provide services—like content, appearances, and endorsements. Another myth is that every athlete is earning six figures. In truth, most athletes earn modest compensation, with only a select few seeing large payouts.
What legal pitfalls are most common in NIL deals, and how do you navigate them?
"Common legal pitfalls include poorly drafted contracts without clear deliverables, inadequate exclusivity provisions causing conflicts between sponsors, and deals that inadvertently violate state laws or school policies." It is on the lawyer to navigate these legal issues with compliance reviews and working with school compliance departments. Heitner believes "ambiguity breeds disputes".
Is it harder to work NIL deals in certain states?
"There's significant variation in NIL regulation by state, creating compliance challenges. States with the most restrictive or ambiguous laws present the greatest difficulties. States requiring specific contract language, imposing unique disclosure requirements, or restricting certain categories of businesses (like states prohibiting deals with gambling companies) create additional compliance burdens. We maintain a comprehensive database of state-specific requirements to ensure compliance across jurisdictions."
Kentucky's NIL laws updated
Kentucky for it's part recently updated the NIL laws in the state ahead of the House vs. NCAA ruling just last month. Kentucky’s Governor Andy Beshear signed Senate Bill 3 (SB 3) to boost college sports by letting schools like UK pay athletes directly for their name, image, and likeness (NIL)—think ads or endorsements—through revenue sharing. This means athletes can earn money from their school, not just outside companies, but they have to share any outside NIL deals with their school for approval within three days to avoid conflicts with state laws or school rules. Athletes also can’t use school facilities, like stadiums, for these outside deals as freely. When signing deals, athletes should watch out for how extra cash might affect scholarships or financial aid and plan carefully, since schools aren’t responsible for routine mistakes that mess up an athlete’s outside deals. This law ties into a bigger NCAA settlement that’ll share nearly $3 billion with athletes, setting new rules for how schools and players split money moving forward.
Kentucky’s Senate Bill 6, originally passed in 2022, lets college athletes earn money from their name, image, and likeness (NIL) through deals like endorsements or social media posts. They can’t promote alcohol, gambling, or drugs, and must avoid conflicts with school sponsors, like UK’s Nike deal. Athletes have to submit contracts to their school within three days for approval to stay eligible. Schools can set rules, like banning deals that disrupt practices or misuse logos, but can’t punish athletes for earning NIL money.
They also provide workshops on finance and social media. Building on a 2021 order by Governor Beshear, this law clarifies rules and stops shady recruitment deals, ensuring Kentucky athletes, from Wildcats to smaller programs, can profit fairly while staying in the game.
What happens if a player isn’t paid for a deal?
First, Heitner attempts resolution with the brand. If that fails, he issues a demand letter. The last resort is arbitration or litigation, depending on the contract’s terms. “We always try to resolve issues amicably, but we’re prepared to escalate when necessary.”
Have schools ever blocked NIL opportunities—and how do you address those?
"Schools have occasionally raised concerns about deals that conflict with existing university sponsorships or raise image concerns. Rather than "fighting" these situations, we typically work collaboratively with compliance departments to find acceptable modifications. This might involve adjusting promotional timing, modifying creative elements, or implementing disclosures to clarify the partnership is with the athlete, not the institution."
What’s the most important advice you give every athlete before signing a deal?
“Understand your obligations,” Heitner stresses. That includes knowing what you have to deliver, exclusivity clauses, payment timelines, and how the deal affects eligibility. Clarity is key.
From a legal standpoint, what do you wish fans understood about NIL?
"I wish fans understood that NIL deals are arrangements that involve real deliverables, tax implications, and legal obligations for both parties. Athletes are essentially operating as small business owners, with all the responsibilities and potential liabilities that entails. There is no "free meal." Athletes are receiving compensation based on the perceived value they provide to third parties."
What does the future of NIL and college athletics look like from your perspective?
"The future likely involves further formalization of NIL processes, with potential national standards replacing the current patchwork of state regulations. I expect collective licensing models to emerge for group rights, similar to professional sports unions. Revenue sharing between institutions and athletes seems inevitable, whether through formal arrangements or expanded NIL opportunities. The distinction between professional and college athletics will continue to blur."
Fans are divided on NIL, some believe it is ruining the college athletic scene; while others believe it is high time players get paid for their roles on the field.
What reforms are needed to improve the NIL system and better compensate players?
Heitner believes that "clearer guidelines on permissible activities" and "relaxed team licensing policies allowing athletes to use school marks in certain contexts" would greatly benefit everyone involved. Saying it would create a "more transparent, efficient marketplace for athlete compensation."
Why can’t athletes use school logos in their NIL deals—and can anything be done?
"School logos are restricted because they're protected intellectual property owned by the institutions. Their use implies institutional endorsement and could conflict with existing university sponsorships." However, some schools have allowed athletes to use their logo but they also ask a cut of the revenue if the athlete opts into the group license, Heitner said.
What’s the difference between a lawyer and an agent in NIL—and do players need both?
"A lawyer provides legal advice and contract review, focusing on compliance and protecting legal interests. An agent primarily sources deals, negotiates terms, and manages relationships. While there's overlap, the roles are distinct—lawyers have certain ethical obligations and attorney-client privilege that agents don't. Many athletes benefit from having both: an agent to secure opportunities and a lawyer to review contracts and ensure compliance with relevant regulations."
While a lawyer and agent do share some of the same job roles, they are entirely different.
Any NIL horror stories that prove the value of a lawyer?
Without naming names, Heitner describes athletes unknowingly signing multi-year exclusivity deals, contracts with no payment protections, or clauses that allow termination for vague reasons.
"I've seen numerous concerning situations: athletes signed to multi-year exclusive agreements without understanding the restrictions, contracts with no payment timelines or enforcement mechanisms, deals with inappropriate morals clauses that could allow companies to terminate for almost any reason, and agreements violating state NIL laws that jeopardized eligibility. Legal review before signing would have prevented these situations."
What’s the most common issue in NIL contracts?
"The most common issue is ambiguity in the deliverables section—vague requirements about content creation, appearances, or promotional activities without specific quantities, quality standards, deadlines, or approval processes. This ambiguity creates disagreements about whether the athlete has fulfilled his/her obligations. Close behind are payment terms without clear timelines and inadequate exclusivity provisions that don't properly define competitor restrictions."
An athlete needs to be able to know who the competitors are if they are going to be restricted. For example if Lamont Butler had the deal with a local gas station, does that extend to convenience stores or is it strictly limited to one area? Things can get murky fast.
How do you ensure athletes don’t lose eligibility due to a contract?
His firm uses a "compliance checklist for every deal, reviewing NCAA rules, state law, and school policies." If there is any doubt at all, Heitner and his firm "consult directly with compliance staff before finalizing deals in ambiguous situations."
What’s the most complex NIL case you’ve worked on?
Any time you are dealing with multiple brands across several countries, each with different NIL, tax, and IP rules. Add in NCAA compliance, and it becomes a legal maze Heitner said.
Conclusion
NIL has transformed college athletics, and attorneys like Darren Heitner are vital to making sure athletes maximize their value safely. NIL is here to stay, and it is important fans understand what it is; and more importantly what it is not.