NIL Knowledge Hub
NIL for college athletes
College athletes can earn money from their name, image and likeness in two ways: deals with businesses and other third parties, which Division I athletes report to NIL Go when they reach $600, and direct payments from their own school under the House settlement's revenue sharing. There is no cap on third-party NIL, but deals with people or groups tied to a school must have a valid business purpose and pay within a reasonable range.
College NIL rules are still settling: the College Sports Commission updates its review thresholds and guidance regularly, and the Senate-passed Protect College Sports Act would change agent, transfer and state-law rules if the House passes it.
Key facts
- Division I athletes report third-party NIL deals of $600 or more (in total) to NIL Go within five business days, whether or not their school opted in to revenue sharing.
- Schools that opt in may pay athletes directly up to a cap: $20.5 million per school in 2025-26 and about $21.58 million in 2026-27.
- Revenue sharing does not make an athlete an employee of the school, according to the College Sports Commission.
- There is no cap on third-party NIL compensation.
- A school may not guarantee a third-party NIL deal, and an NIL agreement with the school may not extend past the athlete's eligibility.
- A Division I athlete has 14 days to take a not-cleared NIL Go decision to neutral arbitration, at no fee to the athlete.
On this page
Two ways college athletes are paid for NIL
Since July 1, 2025, a Division I athlete's NIL income can come from two places.
- Third-party deals: money or products from businesses, brands, collectives, marketing agencies or individuals. These have no cap but must be reported to NIL Go once they total $600 with the same payer.
- Your school: a school that opts in to the House settlement may pay you directly, usually as a license to use your NIL. Those payments count against the school's annual cap, are put in writing in a signed agreement, and are reported by the school in the College Athlete Payment System (CAPS).
Schools in the ACC, Big Ten, Big 12, Pac-12 and SEC take part automatically. Other Division I schools choose each year, by May 1, whether to opt in.
| Topic | Third-party NIL deal | School revenue sharing |
|---|---|---|
| Who pays | A business, collective, agency or individual | Your school (or its designee) |
| Cap | None | Counts against the school's annual cap |
| Reported by | The athlete, to NIL Go ($600+) | The school, in CAPS within 5 business days |
| Review | Associated status, valid business purpose, range of compensation | Cap compliance |
| Guarantees | A school may not promise one | Written agreement required |
Reporting deals to NIL Go
Every Division I athlete must report third-party NIL deals worth $600 or more in total, including deals that could reach $600 through royalties, bonuses or contingencies, and the value of products and services such as a car lease or gym membership. Multiple deals with the same payer (or companies with common ownership) are added together.
Report within five business days of signing or agreeing to the payment terms. You may name one representative to enter deals for you, but the submission is yours.
NIL Go returns one of three results: cleared, not cleared, or flagged for additional review. If a deal is not cleared, you can revise and resubmit it, cancel it and refund any money already received, or appeal to neutral arbitration within 14 days. Going ahead with a deal that was not cleared, or not reporting one, can cost you your eligibility.
As of July 2026, the College Sports Commission does not run range-of-compensation review on deals of $600 to $15,000 until an athlete has $50,000 in associated deals in an academic year. Those deals must still be reported and still need a valid business purpose.
Collectives, boosters and associated entities
The toughest review is for deals with an associated entity or individual: a group that exists in significant part to support one school's athletes or create NIL deals for them (most collectives), its owners and employees, anyone who has given more than $50,000 over their lifetime to the school or such a group, and anyone who has helped recruit or retain athletes for the school.
Those deals must use your NIL to promote or endorse goods or services sold to the general public for profit, must actually use your NIL in a clear and specific way, and must pay at rates commensurate with similarly situated athletes who are not at that school. A collective may still act as a marketing agent that matches you with outside businesses.
See NIL collectives and associated entity.
Roster limits and scholarships
At schools that opt in, NCAA scholarship limits were replaced by roster limits, and a school may give full or partial scholarships to everyone on a roster up to the limit. Football's roster limit is 105 (it had 85 scholarships), men's basketball 15 (was 13), women's basketball 15, baseball 34 (was 11.7) and softball 25 (was 12).
Rosters are submitted and certified in CAPS by the day before the first contest or December 1, whichever comes first. Any athlete receiving athletics aid or settlement payments must be on the submitted roster for that academic year.
Transfers and NIL
NIL deals follow you into the transfer portal. When a Division I athlete transfers to another Division I school, NIL Go evaluates association based on the new school from the day the athlete's name enters the portal. Athletes moving up from Division II or III must report deals of $600 or more made from the date they entered the portal, within 14 days of enrolling or before their first Division I game.
Your state's law still matters
Most states with college NIL laws require you to disclose contracts to your school, ban certain categories and prohibit conflicts with team or school sponsorship contracts. Texas, for example, requires disclosure to the school before you sign and bans endorsements of alcohol, tobacco and nicotine products, anabolic steroids, sports betting, casino gambling, firearms you cannot legally buy and sexually oriented businesses.
Look up your state under NIL rules by state.
Taxes, agents and international athletes
- Taxes: NIL income, including products, is taxable. Third-party payers usually treat you as an independent contractor, so you may owe self-employment tax and quarterly estimated taxes. See NIL taxes.
- Agents: you may use an agent or lawyer for NIL. Many states require athlete agents to register, and the Senate-passed federal bill would cap agent fees at 5% if it becomes law.
- International athletes: you must still report deals to NIL Go, but student visa rules can limit whether you may earn NIL income in the United States. Talk with your school's international student office before signing anything.
Frequently asked questions
How do college athletes get paid for NIL?
Through third-party deals with businesses, collectives and individuals, which have no cap but must be reported to NIL Go at $600, and, at schools that opt in, through direct revenue-sharing payments from the school up to its annual cap.
Is there a limit on how much a college athlete can make from NIL?
No limit applies to third-party NIL. Deals with associated entities or individuals must pay within a reasonable range of compensation, and school payments count against the school's cap of about $21.58 million in 2026-27.
Are college athletes employees now?
No. The College Sports Commission says revenue sharing does not create an employment relationship. Federal law has not settled the question; the Senate-passed Protect College Sports Act is neutral on it.
Do Division II and III athletes report to NIL Go?
No. NIL Go reporting is a Division I rule. Division II and III athletes may earn NIL money under NCAA rules and state law, and should follow their school's disclosure rules.
What if NIL Go does not clear my deal?
You can revise and resubmit it, cancel it and refund any money, or start neutral arbitration within 14 days. Arbitration is free for the athlete, usually finishes within about 45 days, and any penalty is on hold while it runs.
Next steps
Sources
- Student-Athlete NIL Deals — College Sports Commission
- Revenue Sharing — College Sports Commission
- Roster Limits — College Sports Commission
- Rules and Policies — College Sports Commission
- Frequently Asked Questions — College Sports Commission
- Enforcement and Neutral Arbitration — College Sports Commission
- H.B. 126, 89th Legislature (Texas), enrolled — Texas Legislature
This is general information, not legal advice. NIL rules differ by state, school, association and sport, and they change often. Check the official sources linked on this page and talk with your school's compliance office, your state association or a licensed attorney before you sign anything.