Still wouldn't be enforceable...and really a bad idea
Every time this topic comes up, people say, “Well just put it in the contract.”
So here’s the actual legal reality, without the emotions or the fantasy‑land assumptions.
Even if you wrote a 30% postseason holdback into an NIL deal, it still wouldn’t be enforceable.
Not by the school.
Not by a collective.
Not by anyone.
Here’s why:
1 - You can’t contract around labor law. If you condition compensation on:
playing in games
playing in the postseason
minutes
stats
performance
…you’ve created pay‑for‑play, which is the legal definition of an employment relationship.
Once that happens, the school owes:
minimum wage
overtime
payroll taxes
workers comp
unemployment insurance
union rights
collective bargaining
You don’t get to avoid that by saying “but the contract says so.” Courts look at the substance, not the wording.
2 - Penalty clauses like this are unenforceable anyway
A “we’ll dock 30% if you don’t play in the NIT” clause is:
coercive
punitive
contrary to public policy
Courts routinely throw out clauses that punish someone for exercising a lawful choice (like resting an injury or preparing for the draft).
3 - The House settlement (REVENUE SHARING NIL) explicitly forbids tying revenue‑sharing to performance
School‑provided NIL (the new revenue‑sharing bucket) cannot be tied to:
games
stats
postseason participation
Doing so would violate the settlement and invite antitrust and NCAA trouble.
4 - Third‑party NIL can’t do it either. Collectives can’t tie NIL to athletic performance without becoming employers under federal law. No collective wants to deal with payroll taxes and workers comp.
5 - “Come to Virginia Tech, where we’ll holdback 30% of your money if you’re hurt or don’t want to play in a consolation tournament.”
Every other ACC school would weaponize that in negative recruiting instantly.
You’d tank:
portal additions
high school recruiting
agent relationships
player trust
It’s competitive suicide.
Thread Replies (47)
NIT/postseason tournament news
-- SteveInBaltimore
Mar 14, 2026 at 02:14 PM ET
SteveInBaltimore
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03/14/26 02:14 PM ET
College athletes are not paid employees....
-- AirborneHokie96
Mar 14, 2026 at 09:48 PM ET
AirborneHokie96
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03/14/26 09:48 PM ET
SIB, great info. Better put those contract lawyers to work drafting new
-- saret
Mar 14, 2026 at 06:33 PM ET
saret
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03/14/26 06:33 PM ET
That is a good analysis IMO......
-- 2hhoop3
Mar 14, 2026 at 06:16 PM ET
2hhoop3
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03/14/26 06:16 PM ET
Great post I understand the scenario much better***
-- sacramento hokie
Mar 14, 2026 at 06:07 PM ET
sacramento hokie
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03/14/26 06:07 PM ET
If you remember, the NIT used to be the big dog. It's been declining for
-- Tombo
Mar 14, 2026 at 06:07 PM ET
Tombo
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03/14/26 06:07 PM ET
The sterilization of sports…no names just #’s on uniforms…corporate emblems
-- jagerhokie
Mar 14, 2026 at 05:52 PM ET
jagerhokie
•
03/14/26 05:52 PM ET
AI. Reminds me of a Simpsons episode.
-- HokieNL
Mar 14, 2026 at 06:08 PM ET
HokieNL
•
03/14/26 06:08 PM ET
Do they get a 1099 for rev share? Independent contractors, eventually.
-- TomTurkey
Mar 14, 2026 at 04:37 PM ET
TomTurkey
•
03/14/26 04:37 PM ET
If your company pays you for your job 9-5 weekdays....
-- turkeywinghokie
Mar 14, 2026 at 04:36 PM ET
turkeywinghokie
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03/14/26 04:36 PM ET
I've been doing that for 21 years, including today. I guess I'm a sucker.**
-- MP4VT2004
Mar 14, 2026 at 08:09 PM ET
MP4VT2004
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03/14/26 08:09 PM ET
It's not the same. Post season is part of the job. Always has been. **
-- King of Hokies
Mar 14, 2026 at 05:56 PM ET
King of Hokies
•
03/14/26 05:56 PM ET
No, you don't have to pay them extra. You just need to stipulate a hold
-- King of Hokies
Mar 14, 2026 at 04:14 PM ET
King of Hokies
•
03/14/26 04:14 PM ET
Good luck signing good players.
-- AirborneHokie96
Mar 14, 2026 at 09:52 PM ET
AirborneHokie96
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03/14/26 09:52 PM ET
There's no penalty if you just play all the games. Up front, most athletes
-- King of Hokies
Mar 14, 2026 at 09:55 PM ET
King of Hokies
•
03/14/26 09:55 PM ET
Still wouldn't be enforceable...and really a bad idea
◄
-- AirborneHokie96
Mar 14, 2026 at 10:13 PM ET
AirborneHokie96
•
03/14/26 10:13 PM ET
you are probably right, which is why I didn't watch a single Men's BBall
-- VPI_1998
Mar 15, 2026 at 04:21 AM ET
VPI_1998
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03/15/26 04:21 AM ET
I don't know how to say this any more clearly: it's not a penalty.**
-- King of Hokies
Mar 14, 2026 at 11:16 PM ET
King of Hokies
•
03/14/26 11:16 PM ET
A "holdback" is not a penalty?
-- AirborneHokie96
Mar 14, 2026 at 11:39 PM ET
AirborneHokie96
•
03/14/26 11:39 PM ET
It's not a tax. It's a revenue enhancer. 😊
-- HokieNL
Mar 14, 2026 at 11:43 PM ET
HokieNL
•
03/14/26 11:43 PM ET
Yeah because I am sure players would sign that vs another team**
-- turkeywinghokie
Mar 14, 2026 at 04:30 PM ET
turkeywinghokie
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03/14/26 04:30 PM ET
If a player won't sign a contract that specifies you play in the post-
-- King of Hokies
Mar 14, 2026 at 05:55 PM ET
King of Hokies
•
03/14/26 05:55 PM ET
I am sure you can find some D2 players...
-- AirborneHokie96
Mar 14, 2026 at 09:53 PM ET
AirborneHokie96
•
03/14/26 09:53 PM ET
Did not say you could NOT do it, just saying you are handicapping
-- turkeywinghokie
Mar 14, 2026 at 07:26 PM ET
turkeywinghokie
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03/14/26 07:26 PM ET
Are "a lot" of players actual going to say no to playing in the post
-- King of Hokies
Mar 14, 2026 at 08:42 PM ET
King of Hokies
•
03/14/26 08:42 PM ET
So you feel like it is fact that you can make it happen?
-- turkeywinghokie
Mar 14, 2026 at 11:57 PM ET
turkeywinghokie
•
03/14/26 11:57 PM ET
I said we would get a more reliable, team-oriented player. And that's
-- King of Hokies
Mar 15, 2026 at 08:09 AM ET
King of Hokies
•
03/15/26 08:09 AM ET
A 30% penalty would be rejected by agents and their attorneys
-- AirborneHokie96
Mar 14, 2026 at 09:55 PM ET
AirborneHokie96
•
03/14/26 09:55 PM ET
It's not a penalty. It's a hold back. Read what I wrote again. Hold backs
-- King of Hokies
Mar 14, 2026 at 09:56 PM ET
King of Hokies
•
03/14/26 09:56 PM ET
So while the other schools do not "hold back" money, VT will hold back 30%
-- AirborneHokie96
Mar 14, 2026 at 10:00 PM ET
AirborneHokie96
•
03/14/26 10:00 PM ET
No the hold back is not a recruiting advantage. You know what is? Being
-- King of Hokies
Mar 14, 2026 at 11:14 PM ET
King of Hokies
•
03/14/26 11:14 PM ET
Still illegal, unenforceable, and strategically disastrous.
-- AirborneHokie96
Mar 14, 2026 at 11:44 PM ET
AirborneHokie96
•
03/14/26 11:44 PM ET
Just stop donating, watching, and attending.
-- MP4VT2004
Mar 14, 2026 at 02:38 PM ET
MP4VT2004
•
03/14/26 02:38 PM ET
Afraid we are divided and conquered. Can we start a Fans' Union?**
-- HokieNL
Mar 14, 2026 at 06:46 PM ET
HokieNL
•
03/14/26 06:46 PM ET
If you want college sports to completely disappear, yeah.
-- Snape
Mar 14, 2026 at 03:14 PM ET
Snape
•
03/14/26 03:14 PM ET
College sports won't disappear...there will be winners/losers like always
-- AirborneHokie96
Mar 14, 2026 at 09:58 PM ET
AirborneHokie96
•
03/14/26 09:58 PM ET
We've never been basketball royalty, flushed with cash.
-- Snape
Mar 15, 2026 at 07:51 AM ET
Snape
•
03/15/26 07:51 AM ET
You've got me pegged wrong.
-- MP4VT2004
Mar 14, 2026 at 06:16 PM ET
MP4VT2004
•
03/14/26 06:16 PM ET
I do wish they were paid employees and organized
-- 1977hokie
Mar 14, 2026 at 02:26 PM ET
1977hokie
•
03/14/26 02:26 PM ET
Virginia law re: NIL prohibits that.**
-- saret
Mar 14, 2026 at 06:37 PM ET
saret
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03/14/26 06:37 PM ET
It does.. and there would be little support in the General Assembly to
-- 1977hokie
Mar 14, 2026 at 09:59 PM ET
1977hokie
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03/14/26 09:59 PM ET
Once employees, I'm 100% out
-- TomTurkey
Mar 14, 2026 at 04:43 PM ET
TomTurkey
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03/14/26 04:43 PM ET