For the past four years, there’s been a lot of chatter among college coaches and administrators about the chaotic state of the transfer portal. Athletes have been jumping from one school to another, often in pursuit of better deals, more game time, or simply a more suitable environment. Now, some universities are changing the game by introducing a new tactic to retain their players: if you leave, you might have to pay up.
This new strategy hinges on the assumption that schools will soon be directly signing athletes to Name, Image, and Likeness (NIL) deals. This would bypass reliance on external collectives or individual donors. This shift is dependent on the House v. NCAA settlement, potentially allowing schools to share up to $20.5 million in revenue with their athletes starting next school year, contingent on a federal judge’s approval in California. A crucial hearing is set for April 7.
Anticipating this, many universities prepared by crafting NIL deals during the winter transfer portal cycle. These agreements pivot on school-funded arrangements that kick in only if the settlement is approved. In reviewing some anonymized contracts from several Power 4 schools, it’s clear that all parties intend to dissuade athletes from transferring.
“We’re seeing language similar to what you find in coaching contracts, like buyout terms,” states Joe Hernandez of Just Win Management Group. “This isn’t something you’d typically expect in NFL player contracts.”
For instance, a Big 12 school set terms requiring a player to repay 50% of their contract if they transferred before its agreed end. An ACC school went further, demanding full repayment if a player left before January 31, 2026.
Contracts from the Big Ten, based on templates circulated by the conference, include clauses for liquidated damages if players transfer. Others defer a significant portion of the player’s payments until after the transfer window closes in January.
“They can’t outright prevent players from moving schools,” explains NIL attorney Mit Winter. “But these buyout clauses create a financial hurdle for players who want to break their contract.”
Shane Burnham, a former FBS defensive line coach and now the football director for Ascension Sports Consulting, recently saw a contract where a player at an ACC school had to forfeit half their earnings if they entered the portal in a specific timeframe.
“It’s exploitative,” Burnham remarks about the schools’ approach.
The prevalence of such measures increased during the latest transfer portal cycle, driven by general managers negotiating NIL deals directly — a shift from prior practices where schools maintained a degree of separation from these deals due to revenue sharing.
“There’s so much money involved now,” says Walker Jones, executive director of The Grove Collective, which partners with Ole Miss. “Schools and collectives felt they needed protection.”
Yet, whether this protective measure will hold up is uncertain.
Wisconsin set a precedent in January by refusing to release cornerback Xavier Lucas into the transfer portal after he signed a two-year NIL deal. Although Lucas ultimately joined Miami, Wisconsin accused them of interference.
“A transfer request conflicts with the mutual understanding of the agreement,” Wisconsin stated, hinting at possible legal repercussions. “The agreement between Xavier and Wisconsin is active and enforceable.”
Schools argue these are licensing agreements, not employment contracts, sidestepping the NCAA’s stance against classifying athletes as employees. The payments are positioned as separate from direct university attendance incentives, albeit with disincentives to leave.
Insiders suggest that if an athlete incurs a buyout, the new school might cover the costs.
“It’s akin to coaching scenarios,” says Winter. “Contracts restrict other coaching stints unless a buyout is paid, often by the hiring institution.”
Several athletic directors and legal professionals, however, doubt the enforceability of buyout clauses concerning transfers.
“We’d rather not be the first to pursue legal action against a student-athlete for $25,000 or $50,000,” reveals an ACC football administrator. “But students should be aware that breaking their contract could mean repaying those funds.”
A Big 12 general manager notes that while some contracts don’t incorporate buyouts, they act as a deterrent. “Players may not realize this until agents come into play.”
“The first institution to litigate against a player may face recruiting challenges,” another Big 12 GM suggests.
Three agents have pushed to have buyout terms reduced or removed for their clients. Yet, many players go without such representation and might not recognize this option.
Winter advises caution against imposing excessively high buyouts, as courts might view them as penalties and opt not to enforce them.
Most NIL contracts appear to be annual — except likely for star quarterbacks. Buyout terms may be modest due to remaining payments, but multi-year deals could escalate buyouts and theoretically stabilize team rosters. Nevertheless, schools might seek roster fluidity.
“When buyouts exist, they’re reciprocal,” mentions one Big 12 GM. “This limits our ability to release a non-performing player.”
This becomes especially relevant amid coaching changes. A new coach typically wants to recruit “his guys,” yet might be bound by contracts with underperforming, well-compensated players.
Following years of turmoil and legal battles, NCAA President Charlie Baker anticipates the House settlement will stabilize the NIL environment. Collectives are unlikely to vanish; if anything, they’ll aid schools in maximizing their $20.5 million spend. The Power 4 conferences have engaged Deloitte to oversee agreements exceeding $600.
Concerning transfers, however, an orderly resolution seems distant.
“My expectations are tempered regarding revenue-sharing contracts altering transfer tendencies,” comments Nebraska AD Troy Dannen. “We haven’t noticed such an effect yet.”
Jesse Temple of The Athletic contributed to this report.
(Illustration: Demetrius Robinson / The Athletic; Photos: Alex Slitz / Getty Images, AP Photo / Michael Conroy)
