top of page

Understanding NIL:
What Every Parent Should Know

​Navigating the world of Name, Image, and Likeness (NIL) can feel overwhelming—especially for parents of student-athletes who are suddenly fielding offers, contracts, and representation agreements. At Compass Sports Management, we believe that informed families make the best decisions. This page is designed to give you a clear understanding of what NIL truly means, what it does not include, and how to protect your child’s best interests throughout the process. From breaking down common terms to clarifying legal and financial implications, our goal is to equip you with the knowledge and confidence to support your athlete in this new era of sports.

Get our free guide

What Is NIL?

NIL refers to a student-athlete’s right to be compensated for the use of their Name, Image, and Likeness. This includes things like:

  • Social media endorsements

  • Sponsorship deals

  • Autograph signings

  • Merchandising (e.g., personal logo or apparel)

  • Camps or training sessions run by the athlete

  • Appearances in ads or promotions

NIL gives student-athletes the ability to earn income while maintaining their eligibility to compete at the college level.

What NIL Is Not

There are many misconceptions about NIL. Here’s what it does not mean:

  • It does not mean your child is becoming a professional athlete.

  • It does not guarantee money — athletes must actively pursue and secure deals.

  • It is not a salary from the school or athletic program.

  • It does not replace scholarships or academic aid.

Understanding these boundaries is key to making smart decisions and avoiding eligibility issues with the NCAA or school compliance departments.

Representation: Do We Need an Agent ?

​

While student-athletes can manage NIL deals on their own, many families choose to work with licensed professionals — like Compass Sports Management — for guidance and protection. Here's why:

  • Contract review: Many NIL deals include legal terms that can impact eligibility or future opportunities.

  • Negotiation: A professional can ensure the terms are fair and competitive.

  • Compliance: We help ensure the deal aligns with school, state, and NCAA regulations.

  • Brand building: Strategic guidance helps your athlete grow their influence and long-term earning potential.

​

Note: In North Carolina, only licensed agents can legally represent athletes in NIL matters. Make sure anyone offering representation is properly certified.

Understanding NIL Contracts

 

An NIL deal is a business agreement. It may include:

  • The scope of work (what the athlete is expected to do)

  • Payment structure (flat fee, per post, revenue share, etc.)

  • Duration (one-time or ongoing)

  • Usage rights (how long a brand can use the athlete’s image)

​

Parents should know that once a contract is signed, it's legally binding. Always ask questions and consider having a professional review it before agreeing to any terms.

What’s the Parent’s Role?

 

You play a vital role in helping your child make informed, mature decisions:

  • Be a guide, not a gatekeeper — empower them to learn.

  • Encourage transparency and communication.

  • Keep documentation and records of all agreements.

  • Support them emotionally — NIL brings new pressures as well as opportunities.

Signing a Contract

Protecting Your Child's Future

 NIL opportunities can be exciting, empowering, and even life-changing. But with every opportunity comes responsibility. By staying informed and working with trustworthy professionals, you can help ensure your child is protected — and positioned for long-term success both on and off the field.

​

If you have questions or want help reviewing a deal, Compass Sports Management is here for you. Reach out anytime — we’re committed to walking this journey with your family.

As of July 1, 2025, high school athletes in North Carolina entering into athlete agency contracts for NIL purposes must follow a set of procedures outlined in two key governing policies: 1.Senate Bill 229 (2025) – State law governing athlete agents and NIL contracts 2.State Board of Education Policy ATHL-008 – Governs how NIL operates for high school students.

NIL Policy

NIL In the News

New State Board of Education athletics policies for 2025-26 provided by NCDPI

NC lawmakers vote to limit NIL contract transparency | Raleigh News & Observer

Local athletes sign NIL deals with sports apparel line | The Chatham News + Record

Adidas signs top high school basketball recruits to NIL deals - On3

NC board sets rules for high school athletes hoping to profit on name, image and likeness | WUNC

bottom of page