On July 1st, 2021, the NCAA made headlines by allowing college athletes to monetize their name, image and likeness (NIL) for the first time. Intercollegiate athletes were quick to capitalize on their fame by signing endorsement deals, selling autographs and NFTs, hosting sports camps, creating charitable funds and even launching their own cryptocurrencies. The creativity of brand sponsors and college athletes has helped to grow a dynamic new marketplace. In the past four months, thousands of college athletes have become revenue driving enterprises and have developed serious legal needs—even beyond the ones that you would think of. Here is a list of legal questions that (some) college athletes haven’t thought about yet:

1. Should I Hire an Attorney or Agent to Represent me in NIL Deals?

Okay, most college athletes have thought about this one. But here is why it is still important to do. An effective representative not only understands the current marketplace and can help maximize the value of your NIL, but can also help protect your future interests. Contracts can be long, complex and contain legal terms that are difficult to understand. Well-written contracts can help you achieve future flexibility and ensure that you are protected against litigation or intellectual property issues. Even for a smaller NIL deal, it is still essential to understand exactly what you are agreeing to.

2. Should I Register a Trademark for my Brand or Logo?

A trademark can be a logo, symbol, phrase or word that is associated with you and your brand. Although you do not need to register a trademark in order to receive some legal protection, there are many benefits to having a registered trademark with the U.S. Patent and Trademark Office. The most important benefit is to help protect you from trademark infringement by others. In other words, it protects you against other people or businesses using your brand or NIL without your permission. Additionally, having a valid trademark registration can greatly assist you in enforcing your legal rights if someone is engaging in infringing activity. If you have a personalized logo or are selling merchandise with your branding, a trademark registration is a great option to protect your legal interests.

3. I am Thinking About Hiring an Agent, Tax Professional or Financial Advisor. Should I Have an Attorney Review my Contract with Them First?

The short answer is yes. Much like in NIL contracts, you want to make sure that you know exactly what you are agreeing to in an agreement for professional services. An attorney can help you to understand the various terms contained within those contracts. Additionally, it is important that the terms of the contract are favorable to you. An effective attorney can help draft and negotiate a contract that will be beneficial for you in years to come.

4. I am Giving Lessons or Hosting a Camp. Do I Need to Create an LLC?

There are dozens of legal issues that can come up in connection with providing lessons or hosting a camp for younger athletes. The main concerns include legal liability for injuries or accidents that may occur during the training. Every sport includes some risk of injury for participants. As the lesson provider or camp host, you could be legally and financially liable for an injury that a participant sustains.

An LLC or Limited Liability Company can help protect you legally by limiting your personal liability. An LLC is a corporate entity or business that can enter into contracts, operate your business and open bank accounts. Registering an LLC helps protect your personal assets and limits the liability of a potential lawsuit to only the assets invested in the business.

5. I Want to Host Camps and Enter Into NIL Deals. Should I Create Two Different LLCs?

Creating two separate LLCs—one for your intellectual property (NIL) and one for hosting camps—can be a smart idea. Depending on the value of your NIL, it may be worthwhile to keep your businesses legally distinct. Doing so can help protect you legally by limiting your potential liability if an issue were to arise in either.

Now that we are four months into the “NIL Era,” college athletes have faced dozens of unique challenges, including ones that are more complex than some had initially thought. Sponsored social media posts and endorsements are just the tip of the iceberg. Much more is on the horizon.