"Adding liquidated damage fee clauses to NIL contracts became all the rage in 2025, a year that will be remembered as the first time players have been paid directly by schools. But some experts say such fees cannot be used as a cudgel to punish players that break a contract and transfer. It's no surprise that the issue has resulted in a lawsuit - make that two lawsuits - before the calendar flipped to 2026."
"Wilson's countersuit in Boone County, Mo., says he was among a small group of Bulldog stars pressured into signing the contract Dec. 21, 2024. The lawsuit also claims that Wilson was misused as an elite pass rusher, that the Georgia defensive scheme called for him to drop back into pass coverage. Wilson, who will be a senior next fall, led Missouri with nine sacks this season."
Liquidated-damage fee clauses became common in NIL contracts in 2025 after schools began paying players directly. Georgia filed suit seeking $390,000 from defensive end Damon Wilson II after he transferred to Missouri, and Wilson countersued, alleging the clause is being used to punish him for entering the transfer portal. Wilson says he was pressured into signing on Dec. 21, 2024, received $30,000 of a $500,000 deal, and that Georgia delayed placing his name in the portal and spread misinformation to other schools. Some experts argue such fees cannot properly be used to penalize transferring players, while Georgia says it honors its commitments.
Read at Los Angeles Times
Unable to calculate read time
Collection
[
|
...
]