What You Need To Know About NIL

Historically, the NCAA prohibited student-athletes from receiving compensation to maintain amateur status. However, following legal challenges, notably the Ed O'Bannon case, and legislative changes like California's Fair Pay to Play Act, the NCAA lifted these restrictions on July 1, 2021. This shift allows athletes to profit from their NIL through endorsements, sponsorships, and other promotional activities, while still prohibiting direct payments from universities to maintain amateurism. NIL rights empower athletes to monetize their personal brand without compromising their amateur status.

NIL Introduction

College sports are undergoing a major shift with the introduction of NIL (Name, Image, and Likeness) rights, allowing athletes to profit from their personal brand.

For years, student-athletes were considered amateurs, barred from compensation while the NCAA and universities profited from their NIL. Despite past controversies and debates, no real change occurred—until recently.

The NCAA has suspended its ban on NIL compensation, marking a turning point in college athletics. While state laws and NCAA guidelines continue evolving, athletes can now monetize their NIL. Though legal interpretations remain unclear, the opportunity is here.

With temporary rules in place until Congress establishes national regulations, athletes nationwide can now start earning.

Who Does NIL Apply To?

NIL opportunities aren't just for top NCAA athletes—any student-athlete can profit through various activities like endorsements, autographs, or lessons. While big schools may offer visibility, smaller schools with strong local support can be just as lucrative. Performance matters, but athletes who build a niche following, whether through social media or community engagement, can maximize their NIL potential. Success depends on creativity, and many athletes are already capitalizing on these new opportunities in unique ways.

What Does NIL Mean?

Name, Image, and Likeness (NIL) allows college athletes to earn money through endorsements, sponsorships, social media, and other promotional activities. However, schools cannot pay players directly or use financial incentives to recruit athletes, preserving the NCAA’s amateur status.

The Origins of NIL
The NIL movement began with a lawsuit by former UCLA basketball player Ed O’Bannon, who argued athletes should be compensated for their likeness in video games. This case led to further legal challenges, culminating in California’s 2019 Fair Pay to Play Act, which spurred nationwide NIL legislation and forced the NCAA to revise its policies.

Current NIL Guidelines

  • Athletes can engage in NIL activities based on their state’s laws.

  • Schools determine if deals comply with regulations.

  • Athletes in states without NIL laws can still participate.

  • Professional service providers can assist with NIL deals.

  • Athletes must report NIL activities per state, school, or conference rules.

The Future of NIL
With evolving regulations, NIL remains a gray area, creating a "Wild West" environment as athletes and businesses navigate the rules. Payments must come from businesses, not universities, and some states restrict endorsements for alcohol, tobacco, and gambling. Despite uncertainties, athletes across all sports are finding creative ways to benefit from NIL opportunities.

Do All States Have NIL Laws?

Colleges and universities must ensure NIL activities comply with state laws. In states without NIL laws, the NCAA requires schools to establish their own policies to address disputes and provide clarity.

Meanwhile, Congress has proposed several bills to standardize NIL at the national level, with some also advocating for athlete benefits like medical coverage and collective bargaining rights. However, disagreements have stalled federal action, leaving NIL regulation to states and individual schools.

In short, athletes in states with NIL laws can profit per state regulations, while those in states without NIL laws follow school policies. The NCAA prohibits direct pay and NIL-driven recruiting incentives, but most decisions remain with states and universities.

Not all states currently have NIL laws. For the states that we work in, there is no legislation in Idaho and Utah yet. A bill has been introduced in Hawaii, and both California and Texas have NIL laws in place. California passed their NIL law in September of 2019 and went into effect Jan 1, 2023. Texas passed their NIL law in June of 2021 and went into effect on July 1, 2021.

How Are Athletes Using NIL?

NIL opportunities extend beyond college football, with female athletes leading the way. NIL deals range from national campaigns to local sponsorships. Social media influencers like LSU gymnast Olivia Dunne have leveraged their massive followings for lucrative brand partnerships. Beyond profit, athletes are using NIL for good. Other athletes have introduced personal brands and collaborated with businesses. These diverse deals show how athletes are exploring NIL, with opportunities often influenced by their location and market appeal.

Is NIL Right For Me?

Athletes must take charge of their NIL potential while balancing academics and sports. Choosing a trusted guide is key to navigating this evolving space without added stress.

Si’i Alofa helps connect athletes and agents with brands, enabling seamless partnerships.