Are elite college football teams and their collections of names, images, and likenesses simply trying to protect themselves from arbitrary transfers, or are they bullying players into keeping them with the threat of lawsuits?
Adding liquidated damages clauses to NIL contracts became all the rage in 2025, a year that will be remembered as the first year in which players were paid directly by their schools. But some experts argue that such fees cannot be used as a bludgeon to punish players who break their contracts and transfer.
No wonder this issue led to a lawsuit before the calendar changed to 2026. There will be two lawsuits.
Less than a month after Georgia filed a lawsuit against defensive end Damon Wilson II seeking $390,000 in damages due to his transfer to Missouri, Wilson went to court himself, claiming Georgia is abusing the liquidated damages clause to “punish Wilson for entering the portal.”
Wilson’s countersuit in Boone County, Missouri, alleges he was among a small group of Bulldog stars pressured into signing a contract on Dec. 21, 2024. The lawsuit also alleges that Wilson was exploited as an elite pass rusher and that Georgia’s defensive scheme called for him to be moved back into pass coverage. Wilson, who will be a senior next fall, led Missouri with nine sacks this season.
Georgia paid Wilson the first monthly payment of $30,000 on a $500,000 NIL contract before entering the transfer portal on Jan. 6, four days after losing to Notre Dame in the College Football Playoff quarterfinals.
The Bulldogs brass wasn’t happy. Mr. Wilson claimed in his lawsuit that Georgia State dragged his feet and posted his name on the portal, spreading false information about Mr. Wilson and his contractual obligations to other schools.
“When the University of Georgia Athletic Association enters into binding agreements with student-athletes, we honor that promise and expect our student-athletes to do the same,” University of Georgia spokesman Stephen Drummond said in a statement after the school filed its lawsuit.
Wilson’s countersuit reversed that comment, arguing that it damaged his reputation because it implied he was dishonest. In addition to not owing the Bulldogs anything, he is seeking unspecified damages. The Georgia lawsuit called for the dispute to be resolved through arbitration.
Damages are predetermined amounts written in the contract that one party pays to the other party for a specific breach. This fee is intended to provide a fair estimate of potential loss when actual damages are difficult to calculate, and cannot be used to punish one party for breaking the contract.
Wilson’s case could have far-reaching implications because it is the first to determine whether schools can enforce liability clauses. While it is understandable that schools would want to protect themselves from players transferring immediately after receiving NIL money, legal experts say settling damages may not be the appropriate approach.
