NIL + Social Media Disclosures: What Brands (and Athletes) Need to Know
NIL deals have turned college athletes into a new class of influencer. For brands, that’s a marketing opportunity, but also a compliance risk—especially because many NIL campaigns look nothing like traditional athlete endorsements.
In professional sports, deals tend to be structured around agents, contracts, defined deliverables, and a coordinated production plan. In the NIL world, it’s often the opposite. A local business pays an 18- or 19-year-old to post on Instagram, and everyone moves on, without much thought about what the law requires in advertising.
That informality and lack of oversight create legal risk. When a post is paid, and the relationship isn’t clearly disclosed, it can trigger FTC endorsement and advertising compliance issues, and in many cases, the brand faces the greatest risk.
NIL Posts Are Endorsements, and the Connection Must Be Disclosed
If an athlete is paid (or receives free products or other benefits) to promote a brand, that post is an endorsement. And endorsements have a basic rule: the relationship must be disclosed clearly and conspicuously.
In plain terms, the viewer should not be left with the impression that the athlete is posting “organically” when the post is actually part of a paid promotion. This is the same concern that has long driven scrutiny of influencer marketing, particularly in high-profile campaigns where celebrities praise products as if they had simply discovered them, without disclosing that they are being compensated.
In the NIL context, the compliance problem is usually straightforward: the athlete posts, but doesn’t include “ad,” “#ad,” “sponsored,” or similar clear disclosure indicating the post is paid advertising.
Why the Brand Usually Bears the Larger Risk
In many cases, regulators focus less on the influencer and more on the brand because the brand is the advertiser. They’re the ones directing the marketing campaign and reaping the benefits. That means brands are expected to do more than just “hope” the athlete discloses properly.
Practically, that translates into two obligations that many NIL sponsors don’t realize they’re taking on:
- Provide clear disclosure instructions (with examples)
- Monitor posts and require prompt corrections when disclosures are missing.
If a brand doesn’t build those steps into the relationship, it’s taking on regulatory risks.
How to Build a Lightweight Compliance Process
Being in compliance with NIL rules doesn’t require a 20-page contract or a massive internal review process. But it does require structure, because NIL campaigns are often run by smaller marketing teams (or small businesses) with limited institutional experience in advertising compliance.
At a minimum, brands should consider three practical steps:
1. Put disclosure requirements in writing.
Even a short NIL agreement should require clear disclosure of the paid relationship and give examples of acceptable language (e.g., “Ad,” “Sponsored,” “Paid partnership with [Brand]”).
2. Set expectations about placement and clarity.
Disclosures shouldn’t be buried. They should be easy to see and hard to miss (e.g., #ad should not be buried in a long list of hashtags).
3. Monitor and enforce.
Brands should reserve the right to require corrections—editing captions, adding disclosures, or taking down posts that don’t comply.
A simple approach is to require the athlete to send a link or screenshot within 24 hours so someone can quickly confirm the disclosure is present.
What Athletes Should Do to Protect Themselves
Although brands often carry the larger legal risk, athletes should not treat disclosure as “someone else’s problem.” For athletes, disclosure is important, and it protects them in a few ways:
- It reduces the risk that the brand will blame the athlete if a campaign draws regulatory scrutiny.
- It builds credibility with followers (followers can often identify hidden sponsorships).
- It helps avoid unwanted attention as NIL continues to grow and attract scrutiny.
A good rule of thumb is that if you received money or anything of value in connection with the post, disclose it clearly every time.
Conclusion
NIL marketing is moving fast, and many deals are being done informally. That’s why disclosure issues are so common. Brands need to set clear expectations, insist on clear disclosures, and have a system in place to ensure posts are compliant.
If your business is sponsoring athletes, Stradling can advise you on the rules, review your agreements, and help build a process that reduces risk without stifling a campaign.
