• Loading stock data...
Wednesday, February 25, 2026

NIL Contract Buyouts Are More Common, but Can They Be Enforced?

In the pros, as well as with college coaches, buyouts are paid by the team or school the player transfers to. But in the NIL era, they work differently.

Dec 27, 2024; Memphis, TN, USA; Arkansas Razorbacks defensive back Miguel Mitchell (16) returns an interception during the forth quarter against the Texas Tech Red Raiders at Simmons Bank Liberty Stadium.
Petre Thomas-Imagn Images

On Tuesday, Arkansas quarterback Madden Iamaleava—the brother of new UCLA quarterback Nico Iamaleava—entered the transfer portal, presumably to join his brother in Westwood. 

Hours later, Arkansas athletic director Hunter Yuracheck released a statement expressing his “support” for NIL collective Arkansas Edge’s “pursuit to enforce their rights under any agreement violated by our student-athletes moving forward.” 

The statement was taken by many as a thinly veiled threat to Madden, who arrived in Fayetteville just a few months ago after decommitting from UCLA himself. He hadn’t played a down of regular-season football with Arkansas but had inked an NIL contract with Arkansas Edge.

In some ways, the speculation was correct: Madden is one of several athletes who have violated the terms of Arkansas Edge contracts by transferring before his contract was set to expire, prompting the collective to try to enforce a “buyout” clause, a source familiar with the situation tells Front Office Sports. The collective has since issued two demand letters to players to pay buyouts, the source said—though the source declined to confirm that Madden was one of them.

Arkansas isn’t the only collective seeking redress. Multiple sources told FOS that collectives are increasingly trying to recoup revenue from players who are utilizing new NCAA rules, which let athletes transfer as many times as they wish without penalty. “Buyouts are fairly common, especially with high-value athletes,” Russell White, president of The Collective Association, tells FOS. “They are now being included in more agreements.”

The key question is whether buyouts are  enforceable.

In the pros, as well as with college coaches, buyouts are paid by the team or school the player transfers to. But in the NIL era, they work differently. 

Usually, a collective will include a buyout clause requiring the player to either pay or return a certain amount of money to the collective if the player violates the terms of the agreement—usually if they leave schools before the lifetime of the contract ends, and therefore can’t complete all the requisite NIL activities. At Arkansas, for example, deals span one year, and buyouts require players to pay an amount equal to 50% of the remaining earnings through the lifetime of the contract, the source says. 

The enforceability of the contract, however, depends partially on the language of the deal, sports lawyers tell FOS. Attorney Darren Heitner, who represents dozens of college athletes, says that buyouts framed as “penalties” are often less enforceable legally than buyouts framed as “damages.”

“I’m not willing to generalize and state that all buyouts are unenforceable,” Heitner says. “However, on the rare occasion that there has been a claim for repayment for one of my clients, that has been my conclusion based on the language of the agreement at issue as well as the specific facts of the situation at hand.”

Attorney Mit Winter notes that the price of requested damages could matter, too. “The collective would need to be able to tell a court or an arbitrator that by no longer being able to use the athlete’s NIL rights, it will be damaged in some non-speculative amount. That could be hard for some collectives to do.”

Heitner says none of his clients have had to pay buyouts to date. Winter says that, to his knowledge, “not that many” collectives have been able to successfully collect buyouts. 

But success is in the eyes of the beholder. The source familiar with the Arkansas situation says collectives don’t always receive the full amount, but the buyout clause itself brings players and their representation to the table to negotiate some restitution. (While there have been disputes across the industry, White says, most have been resolved behind closed doors.) 

The next step for the industry: to see how a buyout clause fares in court. 

For now, one thing is clear: Collectives are no longer accepting being left high and dry in the era of unrestricted free agency.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Jun 10, 2025; Eugene, OR, USA; A NCAA logo flag at the NCAA Track and Field Championships at Hayward Field. Mandatory Credit: Kirby Lee-Imagn Images

NCAA Continuing to Crack Down on Tampering

The news comes amid highly public tampering accusations.
Tennessee quarterback Joey Aguilar (6) pulls back for the throw during the Music City Bowl NCAA college football game against Illinois on Dec. 30, 2025, in Nashville, Tennessee.

Judge Denies Tennessee QB Joey Aguilar Another Year of NCAA Eligibility

The ruling has implications for the NCAA’s overall eligibility fight.
Jeffrey Epstein and Ghislaine Maxwell

Epstein Files Fallout Spreads to College Sports Buildings

Football facilities at UCLA and Ohio State are named for Epstein-tied donors.
Indiana Head Coach Curt Cignetti watches during the College Football Playoff National Championship college football game at Hard Rock Stadium in Miami Gardens on Monday, Jan. 19, 2026.

Curt Cignetti’s New Indiana Deal Is Richest in College Football

The new contract will pay him $13.2 million annually.

Featured Today

[Subscription Customers Only] Jul 13, 2025; East Rutherford, New Jersey, USA; Chelsea FC midfielder Cole Palmer (10) celebrates winning the final of the 2025 FIFA Club World Cup at MetLife Stadium

Soccer’s ‘Crown Jewels’ Are Devouring Smaller Clubs

Mega conglomerates are feeding a big business machine. Fans are furious.
Feb 10, 2026; Cortina d'Ampezzo, Italy; Cory Thiesse and Korey Dropkin of the United States during the curling mixed doubles gold medal game during the Milano Cortina 2026 Olympic Winter Games at Cortina Curling Olympic Stadium
February 20, 2026

Curling Clubs Are Swept Up in Olympics Fever. Can It Last?

Every four years, organizations field an influx of curling-curious patrons.
Max Valverde by Ron Winsett
February 17, 2026

How Ski Mountaineering’s Hype Man Went From TikTok to NBC

Max Valverde’s gushing over the niche sport vaulted him to Olympic broadcaster.
Feb 11, 2026; Livigno, Italy; Jaelin Kauf of the United States during freestyle skiing women's moguls final during the Milano Cortina 2026 Olympic Winter Games at Livigno Aerials & Moguls Park
February 13, 2026

The Surprise Hit of the Winter Olympics: First-Person Drone Views

Tiny drone cameras have reshaped the Olympics viewing experience.
ASU quarterback Jaden Rashada (5) throws a pass during a spring practice at the Kajikawa practice fields in Tempe on April 16, 2024.
February 18, 2026

Jaden Rashada, Billy Napier Reach Settlement in Lawsuit Over Florida NIL Deal

Rashada’s lawsuit was considered the first of its kind.
February 19, 2026

What Happened to the Group That Promised Sac State $50M in NIL?

The “Sac-12” group says it’s still committed to financially supporting the Hornets.
Sponsored

From USWNT Star to NWSL Franchise Founder

Leslie Osborne, former USWNT midfielder, shares how athletes are moving from the pitch to the ownership table.
February 16, 2026

Kansas State Tries to Use Rant to Avoid Paying Coach $18M Buyout

Tang’s contract says he’s entitled to a $18.7 million buyout.
Sep 16, 2023; Stanford, California, USA; Sacramento State Hornets running back Elijah Tau-Tolliver (25) celebrates after a touchdown during the fourth quarter against the Stanford Cardinal at Stanford Stadium
February 15, 2026

Sacramento State Will Pay $20M+ to Join MAC in FBS

The Hornets have been pushing hard for an FBS invitation.
Ole Miss quarterback Trinidad Chambliss returns to his seat after testifying during the hearing in his lawsuit against the NCAA at Calhoun County Courthouse in Pittsboro, Miss., on Thursday, Feb. 12, 2026. Chambliss is looking for a temporary injunction and a permanent injunction against the NCAA for one more year of eligibility.
February 12, 2026

Mississippi Judge Rules Trinidad Chambliss Can Play Another Year at Ole Miss

It’s the latest result in a flood of NCAA eligibility lawsuits.
Feb 7, 2026; Raleigh, North Carolina, USA; NC State Wolfpack JROTC does the National Anthem before dribbles the first half of the game against the Virginia Tech Hokies at Lenovo Center.
February 11, 2026

NCAA Refuses Settlement Talks in Athlete Employment Lawsuit

The NCAA and defendant schools have tried several times to get the case thrown out.