Podcast Summary: Most Valuable Agent with Matt Hannaford

Episode: The Dark Side of NIL Contracts: How Athletes Get Trapped

Release Date: September 24, 2025
Host: Matt Hannaford
Guest: Ben Levine (Attorney, Partner at Gordon Rees)

Overview

In this insightful episode, MLB agent Matt Hannaford welcomes renowned sports attorney Ben Levine for a deep dive into the increasingly complex world of Name, Image, and Likeness (NIL) contracts. They pull back the curtain on the hidden dangers facing young athletes—especially baseball players—as they navigate NIL deals, school revenue-sharing, agent representation, and the legal gray areas of the recently overhauled college sports landscape. This must-listen episode balances real-world guidance for families, athletes, and advisors with legal and industry anecdotes, exposing the “dark side” of NIL agreements and offering practical strategies to avoid the traps.

Key Discussion Points & Insights

1. The Shifting Landscape: Post-House Settlement NCAA NIL Environment

• Historic Changes: The July 5 House settlement is a watershed moment, allowing schools to directly pay college athletes. However, lack of federal legislation means the rules are still state-by-state.
• Ben Levine:

  “It's a whole new world with NIL and all the changes in college sports … now you have quarterbacks in college making two, three, four million dollars a year.” (02:00)

• The new landscape is positive for athlete compensation but rife with complexity, misinformation, and unanswered questions.

2. State-by-State Chaos and Athlete Vulnerability

• Each state has distinct NIL regulations—what’s legal and lucrative in one state may be illegal elsewhere.
• Matt Hannaford:

  “If you're not looking into this stuff, you're just seeing other players do it—you may assume, 'oh, then I'm fine.' That's not the case.” (03:47)

• High schoolers lack union protection; “agents” may be unregistered friends or amateurs, risking poor deal-making.

3. The ‘Wild West’ and Evolving Legal Structures

• House settlement introduces a $20-22 million cap per school for athlete compensation across sports.
• New compliance mechanisms (like NIL Go, run by Deloitte) will review deals over $600, to monitor fair play and cap circumvention—but bureaucracy is mounting fast.
• Schools with fewer big sports may redirect more funds (e.g., basketball-centric St. John's).

4. The Power Imbalance: University vs. Athlete

• Universities have major resources; agreements are “incredibly one-sided.”
• Broad, vague language in contracts (e.g., morality clauses, confidentiality, clawback provisions) disproportionately favor universities.
• Ben Levine:

  “You have people without the experience negotiating … and binding kids to where … they signed something that turns out to be a real problem.” (04:49)

5. Leverage & Timing: When to Negotiate

• Matt Hannaford:

  “One of the most important things is getting those agreements as early as possible so that … you actually have leverage.” (12:32)

• Once a player is on campus, their bargaining power plummets, especially when team spots and NIL budgets are finite.

6. Dangers Lurking in NIL Deals

a. ‘In Perpetuity’ Clauses

• Athletes may unintentionally sign away rights for their entire life or career.
• Ben Levine:

  “If you do a deal with Rawlings, for example … if it's in perpetuity, they own your NIL rights.” (15:54)

• Enforceability is murky, but fighting such deals is expensive and grueling.

b. Liquidated Damages & Clawbacks

• Some agreements require athletes to repay the entire sum—even after it’s spent—if they violate broadly defined or vague “team rules.”
• Ben Levine:

  “If you violate a team rule … they could claw back or bring back 100% of the NIL money paid.” (11:47)

c. Morality & Confidentiality Provisions

• Morality (morals) clauses are often so broad that minor infractions could trigger severe penalties.
• Confidentiality provisions allow schools to discuss deals, while athletes cannot.

7. Practical Advice for Families and Athletes

a. Get Competent Legal Assistance

• Most families lack the resources or know-how to review these complex deals. Universities bank on this.
• Ben Levine:

  “They have hundreds of lawyers … a lot of these agreements … are incredibly one-sided.” (13:53)

• Even basic contract terms (like liquidated damages) are tricky traps.

b. Prevailing Party Provisions

• Ben Levine:

  “A prevailing party provision … means if I have to litigate this to get paid … I want my attorney's fees.” (31:01)

• Including such clauses makes hiring a lawyer more feasible.

c. Contractual Exit/Mobility

• The #1 priority: ensuring players can exit an unfair or unwanted deal.
• Ben Levine:

  “If the deal goes south, there's an easy mechanism … to get out of it, because I wouldn't want my son stuck … for multiple years.” (46:28)

d. Scrutinize Offsets & Clawbacks

• "Offset" provisions mean outside NIL income may reduce or cancel school-provided compensation.
• Players could double-dip only if contracts don’t allow offsets; schools often aggressively pursue such clauses.

e. Don’t Underestimate ‘Worst Case’ Scenarios

• Assume something might go wrong and be prepared. Never sign “just because everyone else did.”

Notable Quotes & Memorable Moments

• On systemic confusion:
  Ben Levine:

  “Anybody that tells you exactly where things stand is sort of lying to you … it’s going to be a two, three, four year process.” (08:43)

• Best-case bias vs. risk:
  Matt Hannaford:

  “You don’t need to waste any time on best case scenario … think about worst case scenarios. That needs to be the lens you look at these.” (36:42)

• On legal disputes:
  Ben Levine:

  “A lot of times the only people that win are the lawyers … it's super expensive.” (17:12)

• On the emotional tactics by universities:
  Ben Levine:

  “They try to really deal in an emotional component where it's … a pretty important decision … It's you individually, your name, your image, your likeness.” (40:00)

• Why young athletes must focus on exits:
  Ben Levine:

  “I wouldn't want my son … to be in a situation that they wouldn't be able to stand up for themselves and fight for themselves, to get out of something … just making them unhappy.” (46:59)

Timestamps for Key Segments

• Introduction & Ben Levine’s background – 00:12–01:01
• What the House settlement changed, NIL history: – 01:45–03:35
• State-by-state and agent/representation pitfalls: – 03:35–05:08
• Universities' one-sided contracts explained: – 13:53–16:04
• Discussion of in perpetuity / enforcement of deals: – 15:15–17:01
• Difference between school revenue share vs. third-party NIL deals: – 18:16–19:40
• How families can/should get contracts reviewed: – 20:13–22:39
• University leverage and agents’ role: – 23:26–26:00
• Liquidated damages, morality clauses, and exit traps: – 25:16–26:44
• Handling breaches and missed NIL payments: – 30:25–33:20
• Waivers for MLB tryouts—risks & advice: – 35:10–36:25
• Offsets, school manipulation, advice for parents: – 43:16–45:09
• If you could change one thing in an NIL deal: – 46:28
• How to seek legal support, what makes a good attorney: – 48:24–49:43

Final Takeaways & Tone

The episode is candid, direct, and designed to empower. Both host and guest debunk myths, highlight the stakes ("think in worst-case scenarios"), and urge families to be proactive. The tone is conversational, pragmatic, sometimes sobering but always supportive—the message is clear: protect yourself, don’t get trapped. Hire experienced legal representation, scrutinize every clause, and, most importantly, don’t let anyone convince you “everyone else is doing it.”

For further education, listeners should consider re-watching the episode, especially if navigating NIL contracts themselves.
Contact information for Ben Levine and Gordon Rees provided in the show.