Changes in NIL Landscape for Student-Athletes

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Published May 5, 2025.

In wake of the National Collegiate Athletic Association’s (NCAA) evolving Name, Image, and Likeness (NIL) rules, student-athletes are experiencing more freedom and direct benefits than ever before. NIL refers to the student-athletes rights to commercially monetize their identity and personal brand, whether that be compensation for product endorsements, social media promotions, or branded merchandise, among other things. Prior to 2021, the NCAA prohibited student-athletes from profiting off their NIL, but that has since changed dramatically, creating a new legal and business frontier for student-athletes. 

Further changes in the NIL landscape are coming down the pipeline as the NCAA awaits pending final approval of a proposed settlement in the In re College Athlete NIL Litig., No. 4:20-cv-03919, (N.D. Cal.) case (collectively known as the House v. NCAA case). These consolidated class-action lawsuits were filed by college student-athletes against the NCAA and major athletic conferences, alleging violations of federal antitrust laws due to restrictions on student-athlete compensation. In October 2024, U.S. District Judge Claudia Wilken granted preliminary approval to a revised $2.8 billion settlement, which includes provisions for up to $20.5 million in annual revenue sharing per school, totalling approximately 22% of athletic revenue. Additionally, the NCAA will permit student-athletes to negotiate NIL deals before enrolling in school, thus allowing colleges and boosters to begin using NIL deals as recruiting incentives. The settlement also provides back pay for student-athletes who played between 2016 and 2024. We are still awaiting the final approval; as of now, the terms of the deal are set to go into effect on July 1, 2025. 

Moreover, each state may have its own NIL-related laws and schools are adapting their own related guidelines for their athletes. With the rules regarding NIL in college athletics in flux, having a dependable legal advocate is a key investment, whether you are a student-athlete or company seeking to work with them. Key considerations include understanding and considering various contract provisions, such as intellectual property ownership and permissions, contract length, payment details, conditions for termination, and potential fees for a breach of the agreement.

If you have any questions or need assistance, please feel free to reach out to our team here at Neer McD PLLC.

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