Intro

Last night, the Michigan Wolverines beat UConn 69-63 to claim their second national championship in program history. Elliot Cadeau was named Tournament Most Outstanding Player. Yaxel Lendeborg took Big Ten Player of the Year. Dusty May won Coach of the Year. 

Behind every one of those names is something that was not in the picture five years ago: a Name, Image, and Likeness (NIL) deal.

For founders and early-stage companies, a national championship moment like this is not just a sports story. It is a commercial event. If you are building a brand, launching a product, or thinking about your first NIL partnership, there are real legal and business lessons buried in the confetti.

What NIL Actually Is

Since the NCAA changed its rules in 2021, college athletes have been permitted to monetize their personal brands. They can sign endorsement deals, appear in advertisements, post sponsored content, and license their name or likeness to third parties, all while maintaining their eligibility.

What that means in practice: Cadeau, a tournament MVP on a national championship team with a national spotlight, is now a commercial asset. His name, his face, and his brand have real market value. And the companies smart enough to lock in those relationships before the trophy presentation are the ones who benefit most.

The NIL Landscape Today

NIL has grown rapidly since the 2021 rules change. Collectives, brands, and even individual startups have moved into the space. The landscape now includes:

• Collective agreements, where booster-funded organizations pool resources to pay athletes for beneficial program activities. 
• Third-party brand deals, where companies directly contract with athletes for content, appearances, and licensing. 
• Revenue sharing arrangements, which are newer structures allowing universities themselves to share revenues directly with athletes under certain frameworks.

What was once a handshake culture of informal payments is now a structured, contract-driven market. That means there are legal considerations on both sides of every deal.

What Founders Need to Know Before Signing an NIL Deal

If you are a founder thinking about an NIL partnership, whether it is a one-time post from a local player or a multi-year licensing arrangement with a rising star, here is what actually matters legally.

The contract is everything. NIL deals are governed by the underlying agreement, not by goodwill or handshakes. The scope of use, exclusivity, term, compensation structure, approval rights, and termination provisions all need to be addressed. A vague agreement creates vague rights. If your deal does not specify that you can use the athlete's likeness in paid advertising, assume that you cannot.

Trademark and likeness rights are not the same thing. Using an athlete's name in your marketing does not automatically give you rights to their jersey number, team logo, or university marks. Those are separately protected and licensed through the university and the NCAA. If you are building around a Michigan connection right now, you need to understand where the athlete's rights end and the university's rights begin.

Exclusivity matters more than you think. A category-exclusive NIL deal with a high-profile player can serve as a meaningful competitive moat, particularly for regional brands in consumer-facing categories. But exclusivity costs more and requires tighter drafting. Know what you are buying before you negotiate it.

Athletes are not always the decision-makers. Many college athletes, particularly high-profile ones, have agents, NIL advisors, or attorneys representing them. Your deal is being reviewed on both sides. Make sure your terms are clean and defensible.

State law still applies. NIL deals are subject to state contract law, disclosure requirements, and in some cases state-specific NIL statutes. Michigan has its own NIL framework. So does Illinois. If your company is in one state and your athlete is competing in another, the governing law provision in your contract matters.

The Championship Multiplier

A national title changes the math. Players on championship rosters experience a sharp increase in brand value. Cadeau, as tournament MVP on a national championship, is going to be in demand from brands across every category. Lendeborg, with his Big Ten Player of the Year award, is similarly positioned. These are not just college athletes anymore. They are national figures with real commercial leverage.

For brands, this moment is a window. Companies that move quickly and thoughtfully in the weeks following a championship, when players are at peak visibility and before the NIL market fully re-prices their value, can secure partnerships that would cost significantly more after the dust settles.

For founders in consumer, software as a service, or any brand-forward category, a regionally relevant NIL deal with a player on a national champion is a credibility signal that paid advertising simply cannot replicate.

Founder Takeaway

NIL is not just for big brands with large marketing budgets. It is a tool that early-stage companies can use strategically, provided they approach it with the same rigor they would apply to any other commercial agreement. A championship moment like Michigan's creates urgency, but urgency without structure leads to bad contracts.

If you are serious about an NIL deal, get the agreement right. Understand what rights you are actually buying. Know where the university's IP ends and the athlete's begins. And treat the athlete's team, agents, advisors, and attorneys as the counterparty they are.

The confetti falls fast. The contract lasts longer.

Authored by Omar Zoubeidi, Law Clerk at Founders Law focused on startups, venture financing, and emerging consumer brands. Omar is sitting for the July 2026 bar exam, and nothing in this post should be construed as legal advice or as creating an attorney–client relationship; founders should consult qualified counsel about their specific situation.