Empowering Student Athletes to Confidently Seize NIL Opportunities
The NCAA has permanently lifted the rule that prevented prospective college athletes from negotiating Name, Image, and Likeness (NIL) deals before enrolling. This now allows student athletes to secure NIL contracts prior to committing to a university. This change gives student athletes greater leverage in their decision-making, enabling them to weigh NIL opportunities alongside athletic and academic factors when choosing where to attend.
Meanwhile in Texas…
A new bill, House Bill 126 (HB 126), aims to give universities the ability to offer Name, Image, and Likeness (NIL) deals to prospective athletes, potentially improving their recruitment efforts. Texas A&M University attorney Brooks Moore testified that the bill would prevent Texas schools from falling behind in recruitment by allowing them to compete with other states that already allow NIL deals for recruits. If passed, this legislation would also open the door for schools to pay athletes for their NIL rights during broadcasts, with up to $20.5 million in potential revenue.
Currently, Texas’ HB 2804 prevents universities from paying athletes directly for NIL deals and bars using NIL compensation as an inducement for recruits. However, HB 126 removes these restrictions, clearing the way for NIL deals in recruitment. This change could also eliminate the need for a new NIL bill every legislative session, keeping up with evolving NCAA rules. While the bill was left pending in the committee, if it moves forward, it could become law soon. However, questions remain around the impact of Title IX and how NIL revenue will be distributed, with some uncertainty about federal guidance on this issue.
And while we’re at it…
In Alabama, House Bill 240 (HB240) is under consideration by the Alabama Legislature in which they are currently considering making NIL earnings exempt from state income tax via the Competitive Edge NIL Tax Cut Act.
As state legislatures scramble to adapt, universities and athletic departments are seeking ways to secure top talent by brokering NIL deals with prospective student athletes. As the competition for recruits intensifies, lawmakers are under pressure to create legislation that allows schools to offer NIL deals before athletes even step foot on campus. This shift means universities must navigate rapidly changing rules while balancing financial opportunities with recruitment goals.
States that fail to pass comprehensive NIL legislation risk losing top recruits to those with more athlete-friendly policies, making it essential for universities to stay ahead in this new landscape. As NIL opportunities continue to grow, universities are looking to offer prospective athletes compensation that could influence their decisions alongside athletic and academic considerations. The challenge for lawmakers is to craft policies that keep pace with the ever-evolving market while ensuring fairness for athletes.
At POLARIS Student Athlete Consulting, we prepare our student athletes to confidently navigate the NIL market. Through personalized 1:1 coaching, small group workshops, and professionally guided exploration, we equip our student athletes with the tools and knowledge they need to make informed decisions and maximize their opportunities in this dynamic space. Our mission is to empower student athletes to thrive both academically and athletically in the new era of college sports.