NIL for Texas Athletes: What to Check Before Signing

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A brand offer, collective opportunity, or proposed school agreement requires careful review before signing. Start by identifying the rules governing the athlete’s eligibility, the representative’s authority, and the agreement itself.

Name, image, and likeness, commonly called NIL, allows athletes to receive compensation for the commercial use of their identity. Brian Wcislo is a licensed Texas NIL agent and an attorney representing DFW high school and college athletes. His dual role allows us to address the business opportunity and its legal terms before an athlete commits.

Start with the Rules Governing Eligibility

College athletes and younger prospective student athletes face different NIL rules. Before discussing compensation or deliverables, determine whether an institutional policy, UIL eligibility rules, or both govern the athlete.

For Texas college student athletes, Texas Education Code Section 51.9246 requires disclosure of a proposed NIL agreement to the institution, following its prescribed process, before the athlete enters the agreement. The terms also can’t conflict with a team contract, institutional contract, athletic department policy, or institutional honor code.

UIL eligibility requires particular care. Under UIL guidance, prospective student athletes aged 16 or younger can’t sign NIL agreements with postsecondary institutions or other individuals, entities, collectives, or organizations. Athletes aged 17 or older may sign agreements only with postsecondary institutions under applicable state law and NCAA rules. Even a social media offer that appears separate from athletics can raise eligibility questions if it involves a recruit’s status, a school connection, or compensation tied to participation.

Institutional policies also differ in their disclosure procedures and prohibited categories. We review the applicable policy before an athlete signs, including for athletes at SMU, TCU, the University of North Texas, UT Arlington, and UIL high schools across the DFW area.

NIL Agents & Attorneys Serve Different Roles

NIL agents and attorneys aren’t interchangeable, even when one person holds both roles. An agent represents the athlete in the marketplace, while an attorney analyzes the rights and obligations created by the final agreement.

In Texas, a licensed athlete agent may represent an athlete in negotiations, approach brands and sponsors on the athlete’s behalf, and execute agreements within the scope of the representation. This work can include finding opportunities, communicating with a brand or collective, and negotiating compensation, deliverables, and other business terms.

An attorney reviewing an endorsement agreement looks beyond whether the offer is attractive. Legal review identifies broad publicity or intellectual property grants, restrictive exclusivity terms, and obligations that conflict with school requirements or another agreement.

An athlete should understand the document governing each relationship:

  • Agent Agreement: Sets the representative’s authority, compensation arrangement, services, and termination rights.
  • Legal Engagement: Defines the legal work to be performed, such as contract review, negotiation, entity formation, or brand protection.
  • NIL Agreement: States what the athlete must do for the paying party and what the paying party owes in return.

Through Brian Wcislo’s partnership with Keen Sports Group, we combine attorney review with negotiation and deal-sourcing support. Defining the roles on paper shows who’s responsible for sourcing a deal, negotiating its business terms, and assessing its legal risks.

Check the Restrictions & Contract Terms

A brand’s willingness to pay doesn’t make an offer permissible. Texas law bars NIL compensation for endorsements involving:

  • Alcohol
  • Tobacco products, e-cigarettes, and other nicotine delivery devices
  • Anabolic steroids
  • Sports betting or casino gambling
  • Certain firearms
  • Sexually oriented businesses

The agreement must also work with the athlete’s school obligations. Under Texas Education Code Section 51.9246, an athlete can’t use an institution’s facility, uniform, registered trademark, copyrighted product, official logo, or mark in connection with an NIL agreement without the institution’s express permission.

Review the agreement alongside the institution’s policy before execution. Schools can apply disclosure requirements differently, and a proposed campaign may assume access to a uniform, facility, logo, or team reference that the athlete doesn’t have permission to use.

Terms that deserve close attention include:

  • Payment Timing: Identify the amount, payment date, expenses, taxes, and what happens if a campaign is delayed or canceled.
  • Deliverables: Specify the posts, appearances, content approvals, deadlines, and performance expectations required from the athlete.
  • Exclusivity: Check whether the agreement blocks deals with competing brands and how broadly the restricted category is defined.
  • Rights and Exit Terms: Review who owns created content, how long the brand may use it, and when either side can terminate the agreement.

Verify Your Representative’s Texas Registration

Anyone recruiting or soliciting an athlete for an agent contract, financial services contract, or professional sports services contract must first obtain a certificate of registration from the Texas Secretary of State. Texas Occupations Code Chapter 2051 and the related administrative rules establish this registration requirement.

Texas law prohibits a person from acting as an athlete agent, or claiming to be one, without the required certificate. A contract negotiated by an unregistered representative is void. The Secretary of State may assess an administrative penalty of up to $50,000 for violating the Athlete Agents Act, and intentional or knowing violations can carry criminal penalties.

Parents and athletes should ask direct questions before authorizing anyone to pursue deals or negotiate on their behalf:

  • Are you registered with the Texas Secretary of State as an athlete agent?
  • What services are included, and what authority would I be giving you?
  • How are you compensated, and do you have conflicts of interest involving a brand, collective, or school?
  • Who will conduct the final legal review before I sign?

Registration is a baseline, not a substitute for understanding the representation agreement. Read the scope, fees, renewal provisions, and termination terms before granting someone authority to act for the athlete.

Separate Revenue Sharing from Third-Party NIL Deals

A school revenue-sharing agreement and an independent third-party deal create separate commitments. Following approval of the House v. NCAA settlement in 2025, college athletes may encounter both types of documents within the same academic year.

A revenue-sharing agreement concerns compensation connected to the institution. An endorsement agreement with a local business, national brand, or collective has its own payment structure, publicity rights, exclusivity language, and required services. One document doesn’t explain or replace the other.

Texas law limits the duration of a college athlete’s NIL contract to the athlete’s period of participation in the intercollegiate athletic program. The practical effect of a specific agreement still depends on its language and the athlete’s other commitments. Reviewing each document on its own terms reveals where rights, obligations, or restrictions overlap.

Some athletes also need an entity for their business operations. When appropriate, our NIL representation may include:

  • Contract review and negotiation
  • Endorsement and sponsorship deal evaluation
  • LLC formation
  • Operating agreements
  • Brand protection

Follow the Right Order Before Signing

A practical sequence is straightforward: identify the rules governing eligibility, verify the representative’s Texas registration, disclose the proposed agreement when required, and complete legal review before execution. This process clarifies what the deal requires, which rights it grants, and whether school policies create a conflict.

For NIL opportunities involving DFW high school and college athletes, Wcislo Law Group evaluates agreements, representation arrangements, and related business issues before signing. To discuss a specific opportunity, call our team at (214) 740-6160.