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Landscape UpdateJuly 1, 2026/3 min read

The confidentiality clause that makes you the leak

Some NIL agreements now say your kid can lose up to half the payment if the terms get out, even when the person who talked was a parent, an agent, or a lawyer. That puts the penalty on the athlete for a conversation you might have at a cookout.


Here's a clause I want every parent to know about before the summer signing season gets busy, because it's about you as much as your kid.

Sports Illustrated reported on an NIL agreement at NC State that holds the athlete responsible when the terms of the deal get disclosed. Not just when the athlete talks. When a parent, an agent, or an attorney talks. The penalty written into it was up to 50% of the payment.

Read that one more time. Your kid can lose half the money because of something you said.

What actually changed

Confidentiality language isn't new. Brands and schools have always wanted deal terms kept quiet, and plenty of that is reasonable. What's different is who carries the risk.

A normal confidentiality clause says the athlete agrees not to share the terms. This version reaches past the athlete to the people around them and then sends the bill back to the athlete. The people it names are the exact people a family is supposed to lean on when a contract shows up: the parent at the table, the agent who brought the deal, the lawyer you called to look it over.

It isn't only one school, either. Several law firms that write about college sports contracts, Crowell & Moring and Buchanan Ingersoll among them, have flagged this kind of provision as something showing up in more agreements. Sports law commentators who looked at the NC State language called it one-sided, since the athlete has no control over what a third party says.

And no one in the approval chain is looking for it. The College Sports Commission reviews whether a deal fits its rules. It doesn't read a confidentiality paragraph and ask whether it's fair to your family. A clearinghouse approval and a 50% forfeiture clause can sit in the same signed document without anyone saying a word.

What it means at the kitchen table

Think about how you actually talk about your kid's deals. A grandparent asks at a birthday party. A coach from travel ball calls to congratulate you. Another parent in the group chat asks what the collective is paying this year, because they're about to sign too.

None of those feel like a breach. They feel like being a proud parent. But if the contract defines disclosure broadly and names you, every one of those conversations is a risk sitting on your kid's paycheck.

There's a second problem that's harder to see. A clause like this makes families quieter at the exact moment they need to compare notes. If you can't tell another parent what the deal pays or what it asks for, you can't find out whether your offer is low, or whether the same school handed them a cleaner contract. Secrecy protects the side that wrote the paper.

Most of the deals I see don't have language this aggressive. Some do. The only way to know which one is in front of you is to find the paragraph.

What to actually do this week

First, search the contract for the word "confidential" and read every paragraph that comes up. Look for who it covers. If it says "athlete's representatives," "family members," "agents," or "advisors," that's you.

Second, find the consequence. Is it a return of some of the payment, the whole payment, termination, or damages? Get the number in plain dollars. Half of a $10,000 deal is $5,000, and that's the number to say out loud before anyone signs.

Third, ask for a change in writing before signing. A fair version holds the athlete responsible for what the athlete discloses, and carves out conversations with a parent, a lawyer, and a tax preparer. If the other side won't make that change, you've learned something about the deal. I'm not a lawyer and this isn't legal advice, so have a qualified sports attorney read the paragraph with you.

Then tell your family the rule, on purpose, before the deal is announced anywhere.

Talk soon.

— Keeno


Written by Keeno Arrington

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