If you are a college athlete at UNM, NMSU, UTEP, or a New Mexico high school, the world of Name, Image, and Likeness (NIL) is moving fast, and the contracts you are being asked to sign are getting more complicated. The House v. NCAA settlement allows schools to pay athletes directly, the College Sports Commission (CSC) now reviews deals over $600 through NIL Go, and brands and collectives are sliding long-term agreements in front of athletes who have not yet earned their first dollar.

The opportunities are real. So are the risks. A single bad clause can cost you years of earnings, your scholarship, your roster spot, or your eligibility. This guide explains what New Mexico athletes should look for in NIL contracts, what state law says about your rights, and how to keep your deals compliant.

What Did the House v. NCAA Settlement Change for College Athletes?

The House v. NCAA settlement fundamentally changed the economics of college athletics. For the first time, schools can pay athletes directly through revenue-sharing agreements, with a cap of approximately $20.5 million per school per year. That is on top of traditional NIL endorsement deals from third-party brands and collectives.

For New Mexico athletes, this means three separate streams of potential income:

• Direct revenue-sharing payments from your school under the settlement
• Third-party NIL deals with brands, businesses, and collectives
• Group licensing rights that may pay you for use of your likeness in video games, jerseys, and trading cards

Each stream has its own contract, its own compliance requirements, and its own deadlines. Schools, brands, and collectives are drafting these agreements with their own interests in mind. You need someone reading them with your interests in mind.

What Are the Most Common Red Flags in an NIL Contract?

Most NIL contracts being circulated to college athletes contain at least one provision that should make you pause. The most common red flags include:

• Exclusivity clauses that prevent you from signing with any competing brand for years, sometimes well past your eligibility
• Perpetual IP and likeness transfers that give the brand the right to use your name and image forever, even after the deal ends
• Morality clauses so broad that almost any social media post could trigger termination
• Termination clauses that let the brand walk away with no payment but lock you in if you want out
• Automatic renewal provisions that extend the contract without a fresh signature
• Transfer portal buyout penalties that require you to pay the school or collective if you transfer
• Vague payment terms with no firm dates, milestones, or remedies for non-payment

If you are looking at a contract with any of these provisions, that does not necessarily mean the deal is bad. It means the deal needs to be negotiated. Most of these terms are negotiable, especially before you sign.

Does New Mexico Have Its Own NIL Law?

Yes. The Student Athlete Endorsement Act (SB 94) took effect July 1, 2021, and it gives New Mexico athletes specific protections that other states do not. The law prevents schools from blocking third-party NIL compensation, prohibits scholarship reductions based on NIL earnings, and preserves your right to hire independent representation.

New Mexico law also includes a unique provision sometimes called the “footwear clause.” Under this provision, athletes may wear personally endorsed apparel and footwear during official team activities in some circumstances, even where the team has its own apparel deal. This is a meaningful carve-out that not every state allows, and it can make certain endorsement deals more valuable for New Mexico athletes than they would be elsewhere.

For high school athletes, the New Mexico Activities Association (NMAA) has allowed NIL income since June 2023. However, high school athletes cannot use school logos, team uniforms, mascots, or hashtags that connect them to their school or team. Violating these rules can affect eligibility.

How Are NIL Deals Reviewed for NCAA Compliance?

Under the post-settlement framework, every NIL deal worth $600 or more must be submitted to NIL Go, the clearinghouse operated by the College Sports Commission, for review. The review is intended to confirm that the deal reflects fair market value and is not a recruiting inducement disguised as an endorsement.

If a deal is flagged as non-compliant, you have options. You can revise the terms, appeal through the new CSC arbitration system, or walk away. What you cannot do is ignore the process. A deal that is not submitted, or that is submitted and rejected and then performed anyway, can put your eligibility at risk.

Each New Mexico school also has its own internal compliance requirements:

• UNM athletes work through the Lobo athletic compliance office and the 505 Sports Venture Foundation
• NMSU athletes are transitioning from A-Mountain Sports (which ceased operations at the end of 2025) to a new structure under the Aggie Athletic Club and the NMSU Foundation
• UTEP athletes operate under both Texas state NIL law and UTEP’s own compliance policies

Before you sign any deal, the deal needs to clear both school compliance and NIL Go. Doing this in the right order, and with proper documentation, protects your eligibility.

What Should I Do If I Have Already Signed a Bad NIL Deal?

If you have already signed a contract that you now regret, do not assume you are stuck. Depending on the facts, you may have several options:

1. Read the termination provisions carefully. Some contracts allow you to exit with notice or after a period of time. Others contain conditions the brand has not met, which may give you grounds to terminate.
2. Check whether the contract complies with New Mexico’s Uniform Athlete Agents Act. Under NMSA §§ 61-14F-1 through 61-14F-19, agency contracts that fail to meet specific statutory requirements may be voidable, and contracts with unregistered agents are automatically void. We covered this in detail in our post on what to do when your athlete agent cheats you.
3. Document everything. Save the contract, every text message, every email, every payment record, and every piece of marketing material the agent or brand sent you.
4. Notify your school’s athletic compliance office if you believe a deal is non-compliant. Voluntary self-reporting is treated more favorably than violations discovered by the NCAA later.
5. Consult an attorney before you sign anything new, send any termination notice, or make any public statement about the dispute.

Talk to a New Mexico NIL Attorney

If you are a college athlete at UNM, NMSU, UTEP, or a high school athlete in New Mexico, your NIL opportunities will not wait, and your legal protection should not either. Whether you have a contract in front of you, a revenue-sharing agreement to review, or a dispute with an agent or collective, Land of Enchantment Law is ready to help.

Johnn Osborn is one of a small number of New Mexico attorneys practicing in the NIL and sports law space. He spent over a decade as a prosecutor before going into private practice and now represents athletes, businesses, and individuals across Albuquerque, Las Cruces, Santa Fe, and throughout New Mexico. He is licensed in both New Mexico and Texas, with offices in Albuquerque and Las Cruces.

Land of Enchantment Law | 505.585.1235 |Law Office of Johnn Osborn P.C.

Disclaimer: The information in this article is for general informational purposes only and does not constitute legal advice. You should consult an attorney for advice regarding your individual situation. Contacting Land of Enchantment Law does not create an attorney-client relationship.