A sponsorship offer can feel like a huge win.

The wrong contract can follow an athlete long after the excitement wears off.

Name, image and likeness opportunities are no longer reserved for major college stars. New Jersey high school athletes may earn money through endorsements, social media promotions, advertisements, appearances, camps and other permitted activities.

That does not make every opportunity a good one.

New Jersey State Interscholastic Athletic Association rules require a high school athlete’s NIL activity to remain separate from the athlete’s school and team. Violations may result in consequences ranging from a warning to an immediate suspension of eligibility. An athlete may also be required to return money or products received through a prohibited arrangement.

Before anyone signs, parents need to understand what is being offered, what their athlete is giving up and what could go wrong.

Alexis Kopcienski, an attorney with Lyons & Associates, P.C., reviews and negotiates NIL endorsement and agent agreements. She also understands the athlete’s side of the equation.

Kopcienski competed as a Division I softball player at Saint Joseph’s University before attending law school.

“As exciting as getting money, brand sponsorships and endorsements can be, this really should be the last consideration on your mind,” Kopcienski said. “Your job is to go to class, play ball and do your thing."

Here are seven questions New Jersey families should ask before a high school athlete signs an NIL agreement.

1. What exactly is my athlete agreeing to do?

Start with the basics.

What must the athlete deliver? A certain number of social media posts? Public appearances? Autographs? Video content? A camp or clinic?

How often must the athlete perform these services? On which platforms? By what dates?

The agreement should also explain:

• How and when the athlete will be paid
• Who approves the content
• What happens if a post is late
• Whether travel is required
• Who covers related expenses
• What happens if the business cancels the campaign

Do not assume a short contract is a simple contract. A few paragraphs can still contain broad rights, vague obligations and expensive penalties.

Kopcienski’s advice is direct.

Do not sign immediately, even when the offer looks exciting.

“Once it’s signed, it’s not impossible, but it’s a lot harder to undo,” she said.

2. Could the deal affect high school or future college eligibility?

Eligibility comes first.

Lyons & Associates evaluates NIL opportunities through what the firm calls the four E’s:

• Eligibility
• Exclusivity
• Endangerment
• Economics

“If you’re not eligible to compete, you don’t have the NIL opportunities,” Kopcienski said.

New Jersey permits high school athletes to profit from their NIL, but the activity must follow NJSIAA rules.

Coaches, administrators and others employed by the school cannot participate in the athlete’s NIL activity. NIL opportunities also cannot be used to entice an athlete to attend or transfer to a particular school.

Families should confirm whether the deal complies with the rules of any organization under which the athlete hopes to compete later.

Compliance with NJSIAA rules does not automatically guarantee compliance with NCAA, NAIA, NJCAA or other athletic organization standards.

When there is any doubt, ask before signing.

Losing eligibility is a brutal way to discover what was buried in paragraph 14.

3. Does the promotion use the athlete’s school, uniform or game footage?

This is one of the clearest New Jersey rules and one of the easiest places to make a mistake.

A high school athlete’s NIL activity must remain separate from participation on the school team.

An athlete cannot use the school’s name, team jersey, mascot or logo while marketing a product or service.

That restriction can also apply to:

• Photos taken during high school competition
• Highlight videos from school events
• Sponsored accessories worn during competition
• Camps hosted at the athlete’s school
• Promotions conducted during team activities

The athlete’s school also cannot promote a current student-athlete’s NIL deal.

A local business may see a great photo of the athlete scoring the winning goal and assume it is perfect for an advertisement. Under NJSIAA rules, that image may create a prohibited connection to the school.

Parents should ask exactly which photos, videos, uniforms, logos and locations the sponsor intends to use before approving a campaign.

4. How much control is the athlete giving the brand?

Payment is only one side of an NIL deal.

Usage rights matter just as much.

The contract should state where the athlete’s name, image, voice and content may appear. It should also explain how long the sponsor can continue using them.

Watch for language allowing a company to use the athlete’s NIL:

• Forever
• In any format
• Anywhere in the world
• For purposes unrelated to the original campaign
• After the relationship has ended
• Without additional approval or compensation

Parents should also pay attention to exclusivity.

A sports drink company, for example, may require the athlete not to work with a competing brand. That may be reasonable when the restricted category is clearly defined, the agreement lasts for a limited period and the athlete receives additional compensation for giving up other opportunities.

It becomes a problem when the language prevents the athlete from working with broad categories of businesses or unrelated brands.

If a company wants exclusivity, the athlete should understand exactly what they are giving up and what they are receiving in return.

5. How long does the agreement last and how can we end it?

High school athletes can change quickly.

A junior who signs a modest local endorsement may become a nationally recruited college athlete one year later. A contract that seemed harmless at 16 could severely restrict that athlete at 19.

Kopcienski said her team has reviewed contracts with no meaningful expiration date and agency agreements that could allow representatives to collect commissions for years.

Families should look closely at:

• The initial contract term
• Automatic renewal language
• Notice requirements
• Termination rights
• Penalties for leaving
• Restrictions that continue after termination
• The brand’s right to keep using existing content

A fair agreement should provide a clean exit if the sponsor fails to pay, changes the expectations, harms the athlete’s reputation or stops performing its own responsibilities.

Contracts should also contain opportunities for review and renegotiation.

An agreement signed early in an athlete’s career should not quietly control the rest of it.

6. How does the agent or marketing representative get paid?

The sponsor’s agreement is not the only contract families need to examine.

Agents, advisors and marketing representatives may ask for a percentage of an athlete’s earnings.

The critical question is not simply, “What is the percentage?”

Parents should ask what income the percentage applies to.

Does the representative get paid only on deals they personally secure? Or do they receive a cut of every sponsorship, appearance, social media payment, camp and merchandise sale the athlete generates?

Kopcienski has reviewed agreements in which representatives sought 20%, 25% or even 30% of an athlete’s income.

She cautioned that NIL is still too new to declare one universal “normal” rate. The scope of the work, duration of the agreement and services being provided all matter.

A representative who creates and negotiates a deal may reasonably expect compensation for that work.

A representative should not automatically receive a lifetime percentage of opportunities they did nothing to create.

Families should also ask:

• Is the relationship exclusive?
• What services are guaranteed?
• How long does the representation agreement last?
• Can the athlete end the relationship?
• Does the commission continue after termination?
• Does the representative receive money from future renewals?

Pressure to sign quickly, vague duties and commissions that extend indefinitely are major red flags.

7. What are the tax, financial and liability consequences?

A free product is not always free.

Kopcienski recalled seeing a former client post online after receiving a vehicle through an endorsement arrangement.

Her first thought was not about the photo.

It was about whether the athlete understood the tax consequences.

NIL compensation may include cash, merchandise, vehicles, services, gift cards and other noncash benefits. The IRS generally considers cash and noncash NIL compensation taxable income.

Families should speak with qualified legal, tax and financial professionals about:

• Estimated tax payments
• Record keeping
• Business expenses
• Whether an LLC or another entity makes sense
• Who controls the money when the athlete is a minor
• Insurance and liability exposure
• The possible effect on need-based financial aid

The right business structure will depend on the athlete’s age, income, number of deals and long-term plans.

Forming an LLC is not an automatic answer. It is one option that should be evaluated as part of the athlete’s broader financial picture.

What should parents do when someone pressures their athlete to sign?

Slow the process down.

A legitimate opportunity should survive long enough for the family to read the agreement, ask questions and seek professional guidance.

Pressure is not proof that the opportunity is valuable.

Sometimes, it is proof that someone does not want the contract examined too closely.

Kopcienski described one athlete who approached the firm only after signing a deeply unfavorable contract.

Her team spent weeks researching the agreement, relevant laws and potential legal arguments before ultimately helping the athlete end the relationship.

The athlete’s next move was different.

When another contract arrived, he did not sign it.

He brought it in for review first.

That is the habit parents want to build.

The opportunity should protect the athlete, not control them.

NIL can give young athletes valuable experience, meaningful income and an opportunity to build a personal brand.

It can also expose them to long-term contracts, aggressive commissions, tax surprises and people who understand the fine print far better than a teenager does.

The goal is not to scare athletes away from good opportunities.

The goal is to make sure the athlete remains in control of their future.

“Given how new the industry is, any attorney who says they know every single thing about NIL is not being realistic,” Kopcienski said. “We are going to be honest, do the legwork and figure out how to protect the athlete."

Lyons & Associates, P.C. advises high school and college athletes and their families on NIL contracts, endorsement agreements, agent relationships, business structures and related legal considerations.

This article is provided for general informational purposes and does not constitute legal, tax or financial advice.