NFL contracts vs NIL deals: Cenla NFL agent explains differences in commission structures

ALEXANDRIA, La. (KALB) - Shane Williams, a local NFL agent, shared with KALB insight into the differences in commission percentages between NFL player contracts and NIL (name, image, and likeness) deals. According to Williams, these two types of agreements are governed by different financial structures, which impact both an agent’s commission and the player’s earnings.

The NFL imposes a limit on agent’s commission, which caps their earnings at maximum of 3% of the contract’s value. This is largely due to the salary cap in the NFL, which restricts the total amount a player can earn from their contract. As a result, many athletes seek endorsement deals to supplement their income. These deals also typically bring agents higher commission rates. Williams explained that marketing agreements typically fall within a commission range of 10% to 20%.

In contrast, NIL deals, which have gained significant traction in recent years, operate under a different structure. NIL deals are viewed as marketing agreements, so agents charge are able toc charge a higher commission, ranging from 10% to as much as 25%.

Williams noted that, unlike NFL player contracts, the NIL industry is currently unregulated, which allows agents more flexibility in setting their commission rates.

“Typically, in a failed contract, the maximum commission an agent can get is 3%,” he said. “Agents in the NFL also do marketing agreements. Typically, the marketing agreements are anywhere between 10% and 20%. With NIL deals, it’s the same. A lot of players are getting NIL deals and signing with agents, and agents are getting 10%, 15%, and sometimes 20%. So, it’s pretty much been the same, but NIL deals are similar to what you’d do if you were handling a marketing deal.”

Williams also emphasized the growing importance of NIL deals in a player’s financial portfolio.

“Five years ago, players weren’t seeing the millions of dollars in NIL that they’re getting now,” he said. “It depends on the player. If you’re in a good position, with a team and coaches you...and you’re in a place to make money through NIL, why not take advantage of it?”

As the NIL landscape continues to evolve, agents and players alike are navigating the balance between contract earnings and endorsement deals. According to Williams, the commission structures for both types of deals offer agents different opportunities, but ultimately, the goal has stayed the same: securing the best possible financial outcome for the player.

“In the NFL, you want to see a player who starts out with limited recognition, maybe not on anyone’s radar, but then, from January to April, they have an opportunity to sign with a team or get drafted. By August and September, they’re on the 53-man roster. That’s what you want as an agent,” Williams concluded.

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