Texas NIL rules for college and high school athletes

Texas NIL law for college athletes

Texas Education Code Section 51.9246 covers athletes at Texas colleges and universities. A school may not stop an athlete from earning NIL compensation when the athlete is not engaged in official team activities, or from getting professional representation, including a Texas-licensed attorney, for NIL contracts.

Under the statute, a Texas college athlete:

• Must disclose any proposed NIL contract to the school, in the way the school sets, before signing it.
• May not sign an NIL contract that conflicts with the team contract, a school contract, an athletic department policy or the honor code.
• May not be paid in exchange for athletic performance.
• May not endorse alcohol, tobacco, e-cigarettes or other nicotine products, anabolic steroids, sports betting, casino gambling, a firearm the athlete cannot legally buy, or a sexually oriented business.
• May not sign an NIL contract that runs past their participation in the athletic program.
• Is not an employee of the school because they play.
• May sell their own autograph, and may use school facilities, uniforms and marks only with the school's express permission.

What HB 126 changed in 2025

HB 126 rewrote Section 51.9246 for the House settlement era. The Texas House passed it on April 15, 2025, the Senate passed it with amendments on May 27, 2025, and because it received two-thirds of each chamber it took effect immediately on signing.

• It removed the old bans on schools paying athletes and on paying athletes for accepting admission, so Texas schools can share revenue under the settlement.
• Where Texas law conflicts with the rules of an athletic association or conference, or with a final court order such as the House settlement, schools and athletes may follow those rules, and are then subject to their enforcement.
• It barred any person, company or school from entering an NIL arrangement with a prospective athlete younger than 17, or with a relative of that athlete, unless the athlete is enrolled in college.

Texas high school NIL (UIL)

The University Interscholastic League issued guidance after HB 126. Under it:

• A prospective college athlete may sign a scholarship agreement with a college under NCAA rules.
• A prospective college athlete aged 17 or older may also sign NIL agreements, but only with colleges and universities, in line with state law and NCAA rules.
• An athlete aged 16 or younger, and the athlete's family members, may not sign NIL agreements with colleges or with any individual, company, collective or organization.
• An NIL agreement with anyone other than a college may not be signed until the athlete has used up their UIL eligibility in that sport.
• UIL rules do not stop an athlete from getting professional representation for NIL matters.

In practice, that means Texas high school athletes cannot take paid deals with local businesses or brands while they are still playing that sport in high school. Private schools that are not UIL members may follow other association rules; check with your school.

What brands and collectives should know in Texas

Brands working with Texas college athletes should expect the athlete to disclose the contract to the school before signing, should keep school marks out of the deal unless the school gives written permission, and should avoid the banned categories above. For Division I athletes, any third-party deal of $600 or more must also go through NIL Go, and deals with collectives and other associated entities face a valid-business-purpose and range-of-compensation review.

Do not approach Texas high school athletes for paid business deals while they have UIL eligibility in that sport, and do not approach anyone under 17.

Frequently asked questions

Next steps

Sources

1. H.B. 126, 89th Legislature, Regular Session (enrolled) — Texas Legislature
2. Texas Education Code, Chapter 51 — Texas Legislature
3. NIL Information — University Interscholastic League
4. Rules and Policies — College Sports Commission