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Contracts & Rights

IP Rights in Athlete Contracts—Explained Simply

October 21, 2025
·
3
min read

In sport, who owns your name, image, and likeness (NIL) can make or break deals—and even your legacy. Understanding these rights means knowing your power.

1. What Are IP Rights in an Athlete’s Contract?

NIL rights stem from an IP concept called the right of publicity—your legal control over how your identity (name, face, voice, signature, biographical details) is used commercially.

This is separate from copyright or trademark—it’s a personal right to control commercial use of you.

Most athlete-team contracts include a grant of rights clause: the athlete lets the team use their NIL in advertising, merchandising, broadcasts—sometimes for years after the contract ends.

2. What Teams Typically Ask For—and Why It Matters

Teams or leagues often seek broad rights:

Unlimited use in promotional materials, merchandise, and media content,

Rights that continue even after your playing days,

A full transfer of royalties or licensing revenue.

Without limitations, these clauses can strip athletes of future earnings and control.

3. Examples & Legal Precedents You Should Know

O’Bannon v. NCAA (2014/2015):

Former NCAA athletes sued over the NCAA’s commercial use of their images in video games and broadcasts. Courts found NCAA rules violated antitrust law and ordered compensation for former players .

NCAA NIL Shake-Up:

In 2021, NIL rules changed—college athletes were finally allowed to earn compensation for use of their name, image, and likeness. This came after Supreme Court pressure and antitrust litigation .

These shifts show how NIL rights are moving from team-controlled to athlete-controlled territory.

4. What to Look for—and Negotiate—in Your Contract

Clause: Scope of Use

What To Watch For: Does the clause allow unlimited national/international use?

Why It Matters: Defines how widely and frequently your NIL can be commercialized.

Clause: Duration

What To Watch For: Does the team retain rights post-retirement?

Why It Matters: Athletes lose future revenue if NIL rights aren’t time-limited.

Clause: Revenue Sharing

What To Watch For: Will you be paid for merchandising or resale use?

Why It Matters: Ensures fair compensation from royalties or derivative content.

Clause: Exclusivity

What To Watch For: Is the team the only entity you can sign with?

Why It Matters: Restrictive clauses can limit your endorsement potential outside the team.

Clause: Termination & Limits

What To Watch For: Can you revoke the license or restrict it later?

Why It Matters: Gives you flexibility if you change representation or personal branding.

5. How to Protect Your IP Rights

Involve a sports-law attorney early. Ensure all IP clauses are transparent, fair, and balanced.

Limit use rights—oddly, athletes may sign perpetual use rights without compensation. Don’t.

Reserve endorsement flexibility—you may lose control over deals you later want to pursue.

Work with branding or legal representation to file trademarks or preserve legacy rights.

6. Looking Ahead: Big Legal Shifts

A landmark ~$2.8 billion NCAA settlement aims to compensate college athletes for past and future NIL use .

On July 24, 2025, President Trump issued an executive order pushing for federal NIL guidelines, focusing on fair access and scholarship protection .

The "College Athlete Economic Freedom Act" and "Right to Organize Act" aim to codify NIL rights and recognize college athletes as employees .

These developments mean that universities and teams must follow national standards—making careful NIL contract language more important than ever.

💡 Final Takeaway: Be Proactive with Your Name, Image, and Likeness

Your NIL is among your most valuable career assets. Don’t hand away long-term or exclusive rights without compensation or careful limits.

Always review IP clauses with a trusted attorney, ask for revenue-sharing terms, and keep flexibility for future endorsement opportunities.

Protecting your IP isn’t only about immediate money—it preserves the legacy and control that last well beyond your playing years.

Know your options

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Claim your WEVOLV profile and understand every deal before you sign it.

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