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June 18, 2025
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The world of college sports is undergoing the biggest transformation in decades. Name, Image, and Likeness (NIL) deals have opened the door for student-athletes to earn money through personal branding. Now, with the House v. NCAA settlement approved in June 2025, schools themselves will soon be allowed to directly pay athletes, with up to $20.5 million per school available each year. This means NIL is just one part of a broader, regulated compensation landscape.

Whether you are just starting your collegiate journey or already building your brand, here are six essential tips to help you navigate today’s NIL landscape and prepare for what comes next.

1. Understand what NIL is — and what it isn’t

NIL deals allow athletes to earn compensation through third-party activities such as endorsements, social media promotions, and public appearances. However, NIL is not the same as being paid to play. Athletes cannot receive compensation from a school based on athletic performance or for choosing a specific program. Instead, NIL deals must reflect fair market value for services tied to an athlete’s name, image, or likeness.

Beginning in July 2025, a new revenue stream will become available — direct payments from your school under the House settlement. These payments are separate from NIL and will be regulated under a different framework.

Tips:

• • New athletes: Focus on building your personal brand and understanding the value of your name, image, and likeness.
  • Seasoned athletes: Reevaluate your deals to ensure they are still aligned with your current market value.
  • Everyone: Understand that NIL and school-based pay are different, and each is governed by specific rules and oversight.

2. Be aware of endorsement restrictions

Not all NIL deals are permitted. State laws, NCAA rules, and school policies limit the industries athletes can partner with. Common restrictions prohibit NIL partnerships involving:

• Alcohol, tobacco, or adult entertainment
• Casinos, gambling, and sports betting
• Controlled substances and firearms

Your school may also limit NIL deals that conflict with its existing partnerships, such as exclusive apparel providers.

Tips:

• • New athletes: Learn the rules that apply at your school and in your state before pursuing NIL opportunities.
  • Seasoned athletes: Stay up to date with any new regulations or restrictions, especially as oversight transitions to the new College Sports Commission.
  • Everyone: Always disclose NIL deals to your school and confirm compliance before signing.

3. Look beyond big sports for opportunities

Football and men’s basketball may dominate NIL headlines, but opportunities exist in every collegiate sport. Gymnastics, volleyball, swimming, and other sports have produced high-earning athletes, often due to their social media presence and consistent branding.

Tip:

• • Focus on building your presence and engaging with your audience. NIL rewards athletes who are authentic, creative, and consistent across platforms, regardless of their sport.

4. Prioritize professionalism

Athletic skills may get you noticed, but professionalism will determine your long-term success. Sponsors care about how you present yourself online, in public, and media. Poor decisions off the field can quickly harm your reputation and cost you current or future deals.

Tips:

• • New athletes: Look to established professionals in your sport and adopt habits that reflect maturity and responsibility.
  • Experienced athletes: Protect your brand by staying consistent and professional across every aspect of your NIL activities.
  • Everyone: Treat your NIL presence as a business because it is.

5. Secure professional representation

NIL agreements, tax implications, and school policies are complex. Without the right advisors, athletes can end up in risky or unfair contracts or miss important obligations that affect eligibility or earnings. Lawyers and sports agents can help draft fair contracts, ensure compliance with regulations, and protect your interests.

Tips:

• • New athletes: Talk to an experienced professional before entering into any NIL deal.
  • Seasoned athletes: Review existing contracts and structures with trusted advisors to ensure you are protected.
  • Everyone: Think of legal and financial support as a smart investment in your future.

6. Know the new rules: Direct pay is coming

Starting July 1, 2025, schools will be allowed to compensate athletes directly. Under the House settlement, up to $20.5 million per school per year will be available for athlete pay. This represents a major shift in how college athletics are structured.

Key changes include:

• Roster limits will replace the traditional scholarship model with caps on team sizes (for example, football capped at 105 players) and potentially affect scholarship availability. Talk with your coach or compliance office to understand how these changes impact your spot.
• NIL deals over $600 must be reported through a new national portal.
• A new oversight body, the College Sports Commission, will handle compliance and enforcement rather than the NCAA.

 Tips:

• • New athletes: Ask your school how it plans to implement the changes and what it means for your compensation and roster spot.
  • Seasoned athletes: Understand the difference between NIL and direct school pay so you can make informed decisions.
  • Everyone: Keep an eye on developments in employment law and Title IX as legal challenges continue to shape the future. Legal challenges around athlete employment status and Title IX are ongoing, so staying informed is critical.

The final whistle: Preparing for NIL success

NIL has changed the game, but now it is only one piece of a larger picture. As schools prepare to compensate athletes directly and new oversight takes effect, the business of college sports is evolving rapidly. Success in this environment requires more than just talent; it demands knowledge, professionalism, and support from experienced advisors.

If you or your family need help understanding NIL or preparing for the changes ahead, contact Philip Petrina. Our experienced team is here to help you protect your brand, navigate new regulations, and build a successful future in and beyond college athletics.