Caveat: I dunno sh!t about the law in Arkansas.
His lawyer is generally correct about liquidated damages clauses.
We all know what Arkansas' damages are...if I sign QB X to an NIL deal, I can't sign QB Y to an NIL deal. If QB X dips, I'm stuck without a QB because QB Y signed with a different school. That's my real damages before QB X plays a single down.
Problem is, the NIL deal isn't supposed to be pay-for-play. We all know it is, but it isn't supposed to be. NIL is supposed to be for signing autographs at Toyotathon.
That will change with profit-sharing (currently being delayed because of the eligibility of walk-ons but that's another matter entirely).
For this to work for Arkansas, they will have to carefully navigate the fine line between pay-for-play and what NIL is supposed to be in theory. Something like "We signed you to an NIL deal to sign autographs at the Little Rock Toyota dealership; you have breached our personal services agreement and now we can't find another substantially similar local Little Rock celebrity to replace you with to mitigate our damages, thus our damages are difficult to determine and the liquidated damages clause applies."
Let me give you an analogy. Say you sign a contract with Steve Spurrier to open a steakhouse in Gainesville (not to play football). Spurrier backs out. How do you replace Spurrier? You can't. Zook's Steakhouse? Mullen's Steakhouse? It isn't quite the same, is it? Wuerffel's Steakhouse or Tebow's Steakhouse gets a little closer, but it's still not the same. On the other hand, QB X isn't Steve Spurrier. Ain't no field named after QB X. No statue outside the stadium. No rings. No Heisman trophy in the display case. He's a nobody. Why couldn't you replace him with some other 3 star QB recruit riding the bench? I'm rooting for Arkansas in this one, but that might be a tough row to hoe.
Alex.