The NIL era has already opened up diverse opportunities and complications throughout college athletics. What was once a far-reaching step toward empowering student-athletes has now become a legal battleground, with schools and players conflicting over enforcing contract agreements.
The latest situation in the NIL world arose when sports attorney Darren Heitner publicly questioned the University of Arkansas’ NIL collective, pointing out that the school is pursuing an invalid buyout clause against Dazmin James, a former Razorbacks receiver.
Univ. of Arkansas Football Involved in Dispute Over NIL Troubles
The Arkansas NIL collective functions under Blueprint Sports (BPSE) and, with the support of Hunter Yurachek, the athletics director, recently reached out with a demand letter to two ex-players: Dazmin James and Madden Iamaleava.
The group requests $200,000 from Iamaleava, a QB who moved to UCLA to join his brother, Nico, and an unspecified amount from James, a receiver who also left the program.
Notable sports attorney Darren Heitner tells @CBSSports that he is representing former Arkansas receiver Dazmin James. Arkansas’ NIL collective is seeking buyout money from James.
Heitner statement to @CBSSports: https://t.co/3aIUjxFJ8N pic.twitter.com/zdP0fUmITV
— Brandon Marcello (@bmarcello) April 27, 2025
These requests find root in buyout clauses in the parties’ NIL agreements, which require players to pay back portions of their contract, typically 50% of the remaining earnings, if they transfer to other programs before their contract term ends.
In Arkansas’s case, the deals are structured to last one year, which means a mid-term transfer under the agreement could result in significant financial penalties for the players.
However, in a statement shared with CBS Sports, Heitner, a recognized sports attorney known for representing college athletes, stepping in for James, argued that the buyout clause in James’ contract cannot be forced under Arkansas law.
“My position is that the buyout clause in the agreement is unenforceable, as written and applied, under Arkansas law,” Heitner declared.
He further stated that for the liquidated damages to be valid, they must, to a reasonable extent, estimate potential damages and be implemented when the real damages are challenging to determine.
RELATED: What Is an NIL Buyout in College Football? Arkansas Case with Madden Iamaleava Explained
In James’ case, Heitner detailed that the player received no payment from the association, and the agreement was terminated just days after it was implemented.
“BPSE suffered no harm,” he emphasized, referring to the clause as the type that imposes a penalty rather than a fair estimate of damages, which renders it legally untenable.
This will surely just be the beginning—for this specific situation and for NIL disputes as a whole—as the world of college sports continues to adapt to this new reality of “amateur” athletics.
College Sports Network has you covered with the latest news, analysis, insights, and trending stories in college football, men’s college basketball, women’s college basketball, and college baseball!
