What is NIL?

NIL stands for Name, Image, and Likeness—your legal right to control and profit from how your personal brand is used commercially 1. For student-athletes, this means you can earn compensation from sponsorships, endorsements, social media posts, autograph signings, commercial appearances, and product promotions without losing your NCAA eligibility 9.

NIL represents a fundamental shift in college athletics. Before June 2021, NCAA rules prohibited student-athletes from earning money based on their athletic reputation. Today, NIL allows you to build a personal brand and generate income while pursuing your education and athletic career 1.

What Can Count as an NIL Deal?

An NIL deal is any agreement where you receive compensation—whether money, products, or services—for allowing a company, brand, or individual to use your name, image, or likeness 9. Common NIL activities include:

• Social media posts or content creation for brands
• Appearances in commercials or promotional events
• Autograph signings, camps, or clinics you host
• Endorsement or sponsorship agreements
• Merchandise sales featuring your name or image

Key Requirements and Obligations

Disclosure Requirements

One of the most critical obligations is reporting your NIL deals. Division I student-athletes must report all non-institutional NIL contracts or payment terms with a total value of $600 or more within five business days of executing the agreement 1 3. This reporting occurs through NIL Go, your school’s designated reporting system.

Failure to report carries serious consequences. If you miss the five-day deadline, the College Sports Commission (CSC) can impose discipline, including rendering you ineligible for practice and competition 3. Your school also has an obligation: if administrators learn of unreported deals, they must report the violation to the CSC within two business days, and you could be immediately rendered ineligible until the deal is reported 3.

Avoiding Conflicts with Team Contracts

You cannot enter into NIL agreements that conflict with your team contract or institutional partnerships 2. For example, if your school has an exclusive apparel deal with Nike, you generally cannot sign an endorsement agreement with Adidas that requires you to wear or promote their products during official team activities 2.

Additionally, NIL compensation cannot be based on athletic performance or attendance at your school 2. Pay-for-play arrangements—where you’re compensated simply for attending or competing for a specific school—are prohibited 9.

Academic and Athletic Participation Requirements

NIL activities cannot interfere with your academic obligations or required team activities 4. You cannot miss classes or mandatory academic requirements to engage in NIL activities. Under recent changes from the House v. NCAA settlement (effective July 1, 2025), you must remain enrolled and demonstrate progress toward earning a degree to qualify for direct institutional NIL compensation 1 5.

State and School-Specific Rules

NIL regulations vary significantly by state 1. What’s permitted in one state may be prohibited in another. Additionally, your college or conference may have its own specific NIL policies beyond state law 1. Before entering any NIL agreement, you must understand:

• Your state’s NIL regulations
• Your school’s or conference’s NIL policies
• Any specific requirements your athletic department has established

Reasonable Compensation Standards

Your NIL compensation must be within a reasonable range for people with similar fame or influence 9. This means you cannot charge wildly inflated rates that don’t reflect your actual market value or influence.

Tax Obligations

Income from NIL activities is generally taxable 9. If you receive $600 or more from any single payer, you’ll likely receive a tax reporting form. Proper recordkeeping is essential for tax compliance and protecting yourself in disputes.

What’s Not Allowed

Understanding prohibited NIL activities is equally important. You cannot:

• Accept compensation with no required promotional activity or deliverables
• Enter agreements that say your NIL will be used “later” with no defined plan
• Accept pay-for-play arrangements tied to athletic performance or school attendance
• Receive compensation outside reasonable market range for similar deals
• Use school intellectual property (logos, facilities, team names) in NIL activities without permission 2
• Engage in NIL activities during official team activities or events (depending on state law) 2

Recent Changes: Direct Institutional Compensation

As of July 1, 2025, Division I schools that opt into the House v. NCAA settlement can now directly compensate student-athletes for NIL 1. This is a major change—previously, only third parties could pay for NIL rights.

Under this new framework, you can also begin negotiating NIL deals before enrolling at a school, giving you greater leverage during the recruiting process 5. However, increased opportunities come with increased regulation. NIL deals may now be subject to third-party review, and stricter disclosure requirements apply 1.

Getting Started Safely

To protect your eligibility and financial interests:

1. Understand all applicable rules before signing any NIL agreement—state law, school policy, and NCAA rules
2. Disclose every deal over $600 to your school within five business days
3. Review contracts carefully before committing; consider consulting an agent or attorney
4. Ensure compensation reflects market value for your level of influence
5. Document everything for tax purposes and to protect yourself in disputes
6. Avoid conflicts with your team contract and school partnerships
7. Never sacrifice academics or team obligations for NIL activities
8. Seek school guidance when uncertain about whether a deal complies with policies

Conclusion

NIL represents an unprecedented opportunity for student-athletes to build personal brands and generate meaningful income. However, success requires understanding the complex web of NCAA rules, state regulations, and school policies that govern NIL activities. By carefully following disclosure requirements, avoiding prohibited arrangements, and maintaining compliance with all applicable rules, you can maximize NIL opportunities while protecting your eligibility and academic progress.