NIL: Why Every Student-Athlete in the Transfer Portal Needs Legal Representation
April 30, 2025
- Ashley Long
The NCAA transfer portal has become a defining feature of college athletics. Each year, thousands of student-athletes enter the portal for a variety of reasons such as seeking a better fit, increasing playing time, or elevating exposure. Recently, more student-athletes are using the portal to pursue lucrative Name, Image, and Likeness (NIL) opportunities. While this process might seem straightforward, it is actually quite complex. Beyond athletic considerations, student-athletes face an increasingly complicated legal and business landscape, especially with NIL opportunities in play. For these reasons, legal representation is not just beneficial, it is essential.
Many athletes and their families see the transfer portal as a simple transactional tool and often believe it is just a straightforward way to switch programs. However, the portal is much more than that; it marks a critical moment where an athlete’s future is shaped not only by athletic skill but also by contractual agreements, compliance with diverse state laws, and long-term brand implications. Beyond this complexity, athletes entering the portal must also now navigate new NIL offers, branding opportunities, and sponsorship arrangements. Each of these involves legal obligations, and without proper review, athletes may unknowingly expose themselves to significant risks.
The connection between NIL and the transfer portal is now stronger than ever. In addition to promises of playing time or development, schools and collectives are offering NIL incentives as part of their recruitment pitches. These incentives may include community appearances or brand partnerships. However, not all NIL offers are created equal, and many come with strings attached. Some contracts contain clauses that limit future endorsement opportunities, restrict the use of an athlete’s image, or grant overly broad rights to a third party. Without legal review, athletes may agree to terms that benefit everyone but themselves.
Several common risks emerge when student-athletes navigate the portal without legal support. First, contracts may contain language that transfers intellectual property rights, such as the use of an athlete’s name, likeness, or voice permanently or without compensation. Second, each state has its own NIL laws, and NCAA guidelines continue to evolve. A deal that is permissible in one state might violate eligibility rules in another. Third, contracts offered by collectives or third-party sponsors often lack clear termination clauses or protection for the athlete. This can leave them vulnerable if a deal goes south. Finally, tax obligations are frequently overlooked. NIL income is taxable, and transferring to another state with different tax laws can create unexpected financial consequences.
A recent example highlights these challenges. Quarterback Nico Iamaleava, formerly a standout at the University of Tennessee, entered the transfer portal after a dispute over his NIL compensation. Reports indicate that Iamaleava, represented primarily by his father and a family friend, neither whom are attorneys or certified agents, sought to renegotiate his NIL deal, aiming to increase his annual earnings from $2.4 million to $4 million. The situation escalated when Iamaleava missed a practice session, leading to his departure from the program and entry into the transfer portal. NCAA rules prohibited him from transferring to another SEC school without sitting out for a year which significantly limited his options. He subsequently transferred to UCLA, reportedly accepting a deal worth less than his previous compensation at Tennessee. Whether or not Iamaleava anticipated this outcome or was aware of NCAA rules, industry experts cite this case as a cautionary tale, emphasizing how inadequate representation can lead to mismanaged negotiations and diminished market value.
The idea that only high-profile athletes need legal guidance is a misconception. Any student-athlete offered a contract, regardless of the dollar amount, should have a professional review the terms. Legal representation ensures that athletes understand what they’re agreeing to, retain control over their personal brand, and avoid clauses that could limit future opportunities. Additionally, lawyers can help athletes structure deals that align with long-term goals, rather than quick fixes that may jeopardize eligibility or financial stability.
Ultimately, entering the transfer portal is a major decision that carries both opportunity and risk. Athletes invest years into their training, development, and education. That same level of investment should apply to protecting their rights and understanding the agreements they enter. The portal can be a path to greater exposure, better competition, and enhanced NIL deals, but only if approached with the right safeguards in place. Legal support provides clarity, protection, and peace of mind during what is often a fast-moving and emotional process.
Student-athletes should feel empowered to take control of their future and not rushed into decisions that may have lasting consequences. As the landscape of college sports continues to evolve, having trusted legal guidance is one of the smartest investments an athlete can make.
For questions or more information on this topic, please contact Ashley Long.
The connection between NIL and the transfer portal is now stronger than ever. In addition to promises of playing time or development, schools and collectives are offering NIL incentives as part of their recruitment pitches. These incentives may include community appearances or brand partnerships. However, not all NIL offers are created equal, and many come with strings attached. Some contracts contain clauses that limit future endorsement opportunities, restrict the use of an athlete’s image, or grant overly broad rights to a third party. Without legal review, athletes may agree to terms that benefit everyone but themselves.
Several common risks emerge when student-athletes navigate the portal without legal support. First, contracts may contain language that transfers intellectual property rights, such as the use of an athlete’s name, likeness, or voice permanently or without compensation. Second, each state has its own NIL laws, and NCAA guidelines continue to evolve. A deal that is permissible in one state might violate eligibility rules in another. Third, contracts offered by collectives or third-party sponsors often lack clear termination clauses or protection for the athlete. This can leave them vulnerable if a deal goes south. Finally, tax obligations are frequently overlooked. NIL income is taxable, and transferring to another state with different tax laws can create unexpected financial consequences.
A recent example highlights these challenges. Quarterback Nico Iamaleava, formerly a standout at the University of Tennessee, entered the transfer portal after a dispute over his NIL compensation. Reports indicate that Iamaleava, represented primarily by his father and a family friend, neither whom are attorneys or certified agents, sought to renegotiate his NIL deal, aiming to increase his annual earnings from $2.4 million to $4 million. The situation escalated when Iamaleava missed a practice session, leading to his departure from the program and entry into the transfer portal. NCAA rules prohibited him from transferring to another SEC school without sitting out for a year which significantly limited his options. He subsequently transferred to UCLA, reportedly accepting a deal worth less than his previous compensation at Tennessee. Whether or not Iamaleava anticipated this outcome or was aware of NCAA rules, industry experts cite this case as a cautionary tale, emphasizing how inadequate representation can lead to mismanaged negotiations and diminished market value.
The idea that only high-profile athletes need legal guidance is a misconception. Any student-athlete offered a contract, regardless of the dollar amount, should have a professional review the terms. Legal representation ensures that athletes understand what they’re agreeing to, retain control over their personal brand, and avoid clauses that could limit future opportunities. Additionally, lawyers can help athletes structure deals that align with long-term goals, rather than quick fixes that may jeopardize eligibility or financial stability.
Ultimately, entering the transfer portal is a major decision that carries both opportunity and risk. Athletes invest years into their training, development, and education. That same level of investment should apply to protecting their rights and understanding the agreements they enter. The portal can be a path to greater exposure, better competition, and enhanced NIL deals, but only if approached with the right safeguards in place. Legal support provides clarity, protection, and peace of mind during what is often a fast-moving and emotional process.
Student-athletes should feel empowered to take control of their future and not rushed into decisions that may have lasting consequences. As the landscape of college sports continues to evolve, having trusted legal guidance is one of the smartest investments an athlete can make.
For questions or more information on this topic, please contact Ashley Long.
