NIL has completely changed the landscape of NCAA football in recent years. How does it actually work?
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What is NIL in college football?
NIL stands for "Name Image and Likeness". It refers to a college athlete's legal ability to earn compensation for their personal brand. Prior to 2021, collegiate athletes were not allowed to profit off their personal brand beyond scholarships.
With the 2021 change, which came as a result of the Supreme Court's decision in "NCAA v. Alston" and new NCAA policies, college athletes became more similar to professional athletes in the sense they could financially profit off their performance and brand. Student-athletes were previously considered amateurs, and therefore prohibited from receiving monetary compensation for their accomplishments. Not only did that lead to plenty of behind-the-scenes scandals involving recruiting, but there was a longstanding push for college athletes to be compensated.
With NIL, players can earn a piece of the financial pie that traditionally all went to the school itself. The changes have led to universities finding unique ways to generate revenue.
In June 2025, the "NCAA vs. House" class action lawsuit also changed the landscape; the NCAA agreed to allow its member institutions to distribute funds to Division I athletes who have played since 2016. NCAA institutions became allowed to distribute funds up to $20 million to those athletes, with a cap increasing annually. Reports indicate that most of the compensation, whether for active or former athletes, will go toward major revenue-generating programs such as football, plus men’s and women's basketball.
Under the House settlement, student-athletes are still able to continue to sign NIL deals with third parties, but it also permitted the NCAA and conferences to enforce standards on deals to prevent schools from circumventing the salary cap; all third-party deals must be for a “valid business purpose” at “fair market value." All deals over $600 must be reported, with a new non-NCAA enforcement authority, the College Sports Commission, set to monitor and enforce those rules.
Here are some of the types of NIL deals that athletes can land:
Endorsements, including public appearances for a brand/appearing in a commercialSocial media promotions, like paid advertisements and contentSelling autographs and merchandise, like branded clothing or signed gearMaking appearances/hosting events
Collectives are also a significant portion of the landscape; usually, they are a booster organization that is separate from the university, but generates money from donors, businesses, fans and alumni to create NIL opportunities for athletes.
Especially in football, the top revenue-driving sport, NIL has become a very significant portion of team-building, although unintentionally. A big financial package from a collective has been known to swing star recruits or transfers from one school to another.
How does NIL work?
NIL does not involve schools directly paying players themselves, like a professional salary. However, schools can connect players to NIL opportunities with third-parties, like a collective, company or brand. Similarly, an athlete or brand could reach out to one another to talk about a deal.
The athlete and business/collective then usually agree to a contract and terms, with the athlete benefitting the brand in some way (appearances, posts, etc.) in exchange for compensation.
Athletes don't have to be financially compensated, either. Sometimes, brands just offer the athlete the thing they sell (clothing, cars, sneakers, etc.) essentially for free, in exchange for the athlete's endorsement.
Ideally, NIL was not intended to be a tool for recruiting. But in reality, it has become exactly that; larger schools can often generate more money in their collectives, which aren't directly involved with the school/team itself, but recruits are certainly aware of which schools have more NIL dollars to take advantage of. So in many ways, NIL and collectives have a ton of influence in the landscape of which recruits and transfers land where.
Often, the athletes who reportedly make the most in NIL dollars are either among the most talented/dominant in their sport, have a significant social media presence, or a combination of the two.
Still, even the lesser-known college athletes and football players often score deals with local companies and collectives. There have been plenty of unique NIL dealings that didn't come from the basic name-brands or star players, like Reese's Peanut Butter Cups working out deals with college athletes with the last name "Reese."
Most schools require athletes to report any details of potential deals, with some requiring school approval before they sign.
Athletes are permitted to have advisors or agents to help them with NIL and other business dealings. Many schools also often offer training and other resources for their athletes to understand NIL and best business practices.