The NIL (Name, Image, and Likeness) landscape underwent a major transformation in 2025, thanks to the historic House v. NCAA settlement. On June 6, a federal judge approved the agreement that officially ended the amateur-only model in college athletics. For the first time, NCAA schools can now directly compensate athletes—a groundbreaking shift that redefines how student-athletes earn and how businesses can engage with them.
While NIL continues to offer exciting opportunities for brands, the rules of the game are more complex than ever. With a national clearinghouse, new compliance standards, and greater IRS scrutiny, it’s no longer just about making a deal—it’s about doing it right. Here’s what you need to know to confidently and compliantly partner with student-athletes in today’s NIL environment.
1: School Salaries May Lower Athlete Demand for Brand Deals
Starting July 1, 2025, Division I schools that opt into the House settlement can share up to $20.5 million annually with their athletes. This revenue-sharing cap will increase over time, with projections estimating it could reach nearly $33 million by 2034. This creates a formal dual-compensation model, allowing athletes to earn both institutional pay and external NIL income.
For businesses, this means athletes may not be as financially reliant on brand deals—and may become more selective about the partnerships they take on. But there’s good news: with more athletes being paid and supported, the overall talent pool for authentic, motivated brand ambassadors has grown.
2: Roster Limits Expand the Athlete Pool
The removal of scholarship caps and implementation of roster limits have significantly increased the number of athletes eligible for financial support. Football teams can now roster up to 105 players (up from 85), while basketball teams can carry 15. Across all sports, this change could unlock over 115,000 additional scholarships annually.
For businesses, this means a much larger and more diverse talent pool. More athletes with financial support are now available for NIL deals—opening the door for smaller brands to build authentic partnerships with local or niche athletes who may previously have been out of reach.
3: Fair Deal Rules Give Brands a More Level Playing Field
All NIL deals worth $600 or more must now go through NIL Go, a centralized clearinghouse operated by Deloitte. This system reviews contracts to ensure they reflect fair market value and aren’t disguised pay-for-play arrangements. The goal? To bring consistency and legitimacy to NIL deals nationwide.
For brands, this is a positive development. The clearinghouse levels the playing field by enforcing fair compensation standards. Most corporate-sponsored NIL deals already comply, giving legitimate marketers an edge over booster collectives and under-the-table offers. This creates a safer, more transparent environment for companies to build meaningful and risk-free athlete partnerships.
4: A New Commission Is Raising the Stakes for Compliance
With the formation of the College Sports Commission (CSC) in June 2025, oversight of NIL activity and revenue sharing has shifted from the NCAA to this newly established, independent body. Led by former federal prosecutor Bryan Seeley, the CSC is now responsible for enforcing rules around NIL deals, roster limits, and compensation caps.
For businesses, this means compliance is essential. The CSC has signaled a no-nonsense approach to violations, and enforcement will only get tougher. To stay protected, brands must ensure all NIL partnerships follow the rules to the letter, with proper documentation and contract transparency.
5: Contracts Must Follow Clear Standards
NIL contracts now require more structure and transparency. To be compliant, agreements must clearly outline deliverables, payment terms, contract length, and confirmation that compensation is tied to NIL use—not athletic performance. In many cases, student-athletes must disclose deals to their schools in advance—for example, the University of Oregon requires all NIL activities to be reported seven days before they occur.
For brands, this means planning ahead. Institutional requirements vary, so you’ll need to factor in approval timelines and ensure all contracts are airtight. Building time into your campaign workflow and working with partners familiar with NIL compliance can help avoid unnecessary delays or legal issues.
6: Stricter Tax Rules Increase IRS Oversight
The IRS has made NIL a top enforcement priority in 2025. With heightened scrutiny on collectives and more specific guidance around taxability, all NIL earnings—whether cash, merchandise, or perks—are considered taxable income. Athletes must file tax returns if they earn $400+ through self-employment or exceed the standard deduction.
This adds a layer of responsibility for businesses. If you’re paying an athlete over $600, you must issue a 1099 form and be ready to justify the business purpose behind the compensation. Proper tax reporting and clean documentation are non-negotiables—and critical to avoiding audits or penalties.
7: Visa Restrictions Limit Who You Can Legally Pay
Roughly 25,000 international student-athletes compete under F-1 visas, which prohibit most employment activities—including NIL earnings—while in the U.S. However, these athletes can earn NIL income in their home countries under certain conditions.
If you’re considering an international athlete for a campaign, it’s crucial to verify their eligibility to receive payment under immigration law. Without due diligence, you could violate federal regulations. Ensuring legal compliance upfront protects your brand and your partners from unnecessary risk.
8: Athletes Must Clearly Indicate Paid Partnerships
In 2025, the FTC is actively monitoring NIL-related social media content to enforce stricter advertising transparency rules. Athletes must use clear disclosures—like #sponsored, #ad, or #partner—when promoting a brand. Misleading endorsements or unclear posts can result in FTC penalties for both the athlete and the brand.
As a company, you’re responsible for making sure your athlete partners know the rules and follow them. That means including disclosure language in contracts, offering training on FTC compliance, and monitoring published content. Setting up a basic approval workflow helps protect your brand from unintended violations and keeps your NIL campaigns running smoothly.
Navigating What’s Next
The NIL space is still in its infancy—and evolving rapidly. Just a few years ago, student-athletes couldn’t earn a dime from their name, image, or likeness. Today, they’re signing multi-platform endorsement deals, earning school revenue shares, and navigating federal compliance frameworks. As new policies continue to roll out and enforcement tightens, the rules will keep shifting—making it critical for brands to stay ahead of the curve.
For businesses looking to build meaningful partnerships with student-athletes, this moment presents a unique window of opportunity. But success in this space takes more than a compelling campaign idea—it requires a clear understanding of the regulatory landscape, airtight compliance, and a thoughtful strategy that aligns your brand values with the right athlete voices. If you’re ready to explore what’s next in NIL, we’re here to help you move forward with confidence.
