Georgia’s NIL Lawsuit vs Ex LB a Sign of the Times in College Athletics?

quote:

---

The University of Georgia Athletic Association (UGAA)’s NIL lawsuit against former linebacker Damon Wilson II, who transferred to Missouri earlier this year, could become a standard type of litigation as more and more athletes sign NIL deals with one school and then transfer to another.

The specific legal dispute is straightforward: UGAA claims that Wilson, 20, breached his NIL contract with Classic City Collective (CCC)—a Georgia-aligned former NIL collective—and failed to pay a liquidated damages provision that was triggered upon breach.

A four-star recruit from Venice High School (Fla.), Wilson played for the Bulldogs in the 2023 and 2024 seasons and, while on the Tigers in 2025, earned second-team All-SEC recognition as he amassed nine sacks—tied for third-best in the SEC.

According to litigation records at Athens-Clarke County (Ga.) Superior Court, Wilson signed a 13-month, $500,000 NIL deal with CCC on Dec. 21, 2024. The deal runs from Dec. 1, 2024, to Jan. 31, 2026 and was contingent on Wilson being enrolled as a student at Georgia and part of the football team. He was paid $30,000, his first monthly licensing fee payment, on Dec. 25, 2024. UGAA emphasizes that Wilson accepted this payment, meaning the contract went into effect. On Jan. 6, 2025, Wilson announced he was entering the transfer portal, a move that Georgia says constituted a breach of the NIL deal. About a week later Wilson withdrew from Georgia and began the process of transferring to Missouri. It’s unknown how much money Wilson received to transfer to Missouri.

---

quote:

---

UGAA argues that under the NIL deal’s liquidated damages clause, Wilson, as the licensor, must pay all remaining license fees that would have been payable. The remaining value, according to court filings, is $390,000.

In May, attorney Spence Johnson wrote a demand letter to Wilson on behalf of CCC. The letter told Wilson that while CCC “does not want to unnecessarily undermine your financial future,” CCC also “insists that its student athletes be accountable for promises they make.” Wilson was told he had 14 days to pay or else CCC would “pursue legal action against you based on your breaches” of the NIL deal.

---

quote:

---

The actual legal controversy—alleged breach of contract—is ordinary, but the circumstances are extraordinary. A university, through its athletic association, is suing a former student athlete who transferred for reneging on his NIL deal.

A lawsuit like UGAA v. Wilson would have been inconceivable five years ago, but in the new college sports world, it’s the kind of case that could become more common.

Through antitrust litigation and accompanying settlements, college athletes can now transfer without sitting out of sports for a period of time. That approach is consistent with college students in general as they can transfer schools, but typical college students aren’t signing NIL deals.

---