NCAA Considers Requiring Athletes to Share High School and Junior College NIL Earnings with Schools

NCAA Considers New Disclosure Rule for Athlete NIL Deals

August 27, 2025, 07:19 AM ET

Sweeping Changes Proposed for College Athlete Compensation

The National Collegiate Athletic Association is currently deliberating a significant rule change that would mandate prospective Division I athletes to fully disclose any Name, Image, and Likeness (NIL) deals secured during their high school or junior college tenures. This disclosure would be submitted to NIL Go, the verification system established following the recent $2.8 billion legal settlement.

Under the proposed regulation, athletes would be required to report all non-institutional NIL agreements dating back to the beginning of their junior year of high school. Those transferring from junior colleges would need to furnish details of any deals entered into from their initial enrollment date. All prior deal reporting would be finalized through the College Sports Commission upon formal university enrollment.

The Expanding Landscape of High School NIL Opportunities

The realm of NIL compensation for high school athletes has seen a dramatic increase in recent years. Currently, at least 40 states permit high school students to capitalize financially on their personal brand and celebrity status. However, several states, including Alabama, Michigan, Ohio, and Texas, maintain stricter regulations, with Texas specifically prohibiting athletes under the age of 17 from pursuing such agreements.

Did You Know? A 2024 study by the INFLCR found that over 50% of high school athletes are actively engaged in some form of NIL activity.

the Foundation: The House Settlement and NIL Go

This proposed rule is a direct outcome of the aforementioned legal settlement, which allows universities to distribute millions of dollars directly to athletes starting July 1st. Together, the settlement necessitates the reporting of any third-party deals exceeding $600. NIL Go, a system developed by Deloitte and overseen by the College Sports Commission, is designed to assess whether these agreements reflect legitimate market value and serve a genuine business purpose.

Key Component	Description
NIL Go	Verification system for NIL deals.
Reporting Threshold	Deals exceeding $600 must be reported.
Disclosure Timeline	From junior year of high school onwards.

Preventing Illicit Recruitment: The Core Aim

The central goal of this potential rule is to deter improper inducements – often termed “pay-for-play” arrangements – between prospective student-athletes and boosters or individuals connected to the schools. While the precise penalties for noncompliance are still under consideration, the possibility of losing athletic eligibility remains a significant deterrent.

Pro Tip: Athletes considering NIL deals should always consult with a qualified legal professional to ensure compliance with all applicable rules and regulations.

Legal Challenges and remaining Uncertainties

Gabe Feldman, a Director of Sports Law at Tulane University, noted the ambiguity surrounding potential disciplinary measures for violations. He also emphasized that the focus appears to be on avoiding undue harm to athletes and their teams, a shift from past practices where improper benefits could lead to severe consequences.

Despite the potential for legal challenges, the NCAA anticipates a favorable outcome, believing that the substantial financial benefits afforded to athletes under the new rules will diminish the incentive to pursue litigation. However, Feldman cautions that lawsuits are not entirely out of the question.concerns remain that the new rule may simply incentivize boosters and collectives to offer payments to athletes before they are officially enrolled.

The Evolving World of College Athlete Compensation

The introduction of NIL rights has fundamentally altered the landscape of college athletics. What was once a strictly amateur pursuit is now increasingly influenced by commercial interests. This creates both opportunities and challenges for athletes, institutions, and the NCAA itself. Navigating this new habitat requires ongoing adaptation and a proactive approach to regulation.

The long-term effects of NIL on competitive balance, athlete welfare, and the overall integrity of college sports remain to be seen. Continued monitoring and refinement of the rules will be crucial to ensuring a sustainable and equitable future for all stakeholders.

Frequently Asked Questions About NIL Disclosure

1. What is NIL? name, Image, and Likeness refers to the right of college athletes to profit from their personal brand.
2. Who needs to disclose NIL deals? Incoming Division I athletes, and junior college transfers.
3. When do athletes need to disclose NIL deals? Upon enrollment at a Division I institution.
4. What happens if an athlete doesn’t disclose an NIL deal? Loss of eligibility is a possible consequence.
5. What is NIL Go? A verification system for NIL deals, developed by Deloitte and overseen by the College Sports Commission.
6. Will this rule prevent boosters from paying athletes? The aim is to deter it, but concerns remain about payments occurring before enrollment.
7. What are the potential legal challenges to this new rule? Antitrust litigation is a possibility, although the NCAA believes the risk is lower due to athlete compensation.

What impact do you think this new rule will have on the recruitment process?

How will the NCAA effectively enforce these new disclosure requirements?

Share your thoughts in the comments below!

what potential legal challenges could arise from the NCAA requiring revenue sharing of pre-collage NIL earnings?

NCAA Considers Requiring Athletes to Share High School and Junior College NIL Earnings wiht Schools

The Proposed Revenue Sharing Model & Its Implications

the NCAA is actively exploring a significant shift in its Name, Image, and Likeness (NIL) policy: requiring student-athletes to share a portion of their NIL earnings generated before enrolling in college – specifically, during their high school and junior college careers – with their future universities. This proposal, currently under discussion, stems from concerns about competitive equity and the increasing financial disparities between schools in the rapidly evolving landscape of college athletics. The core argument centers around the idea that early NIL deals provide a recruiting advantage, and a revenue-sharing model could help level the playing field.

Why the Change? Addressing Competitive Imbalance

For years, the NCAA prohibited athletes from profiting off their NIL. the 2021 Supreme Court ruling in NCAA v. Alston opened the door to NIL opportunities, but it also created unforeseen consequences.

Recruiting Wars: Schools in affluent areas, or those with stronger alumni networks, are better positioned to attract athletes already benefiting from lucrative NIL deals.

Transfer Portal Impact: Athletes may choose schools based on potential NIL earnings, contributing to increased player movement via the transfer portal.

Financial Disparity: Power Five conference schools are accumulating significantly more NIL revenue than smaller institutions, widening the gap in athletic program funding.

The proposed revenue-sharing model aims to mitigate these issues by redistributing some of the wealth generated from pre-college NIL activities. This is a direct response to the growing influence of NIL collectives and their role in recruiting.

How Would the Revenue Sharing Work? Potential Structures

While the specifics are still being debated, several potential structures for revenue sharing are being considered. These include:

1. Percentage-Based Sharing: Athletes might be required to contribute a fixed percentage (e.g., 20-30%) of their pre-college NIL earnings to their university’s athletic department.
2. Trust Fund Model: A portion of the earnings could be placed into a trust fund managed by the university, accessible for athletic department expenses or future athlete support.
3. Tiered System: the percentage shared could vary based on the athlete’s sport, the size of the university, or the amount of NIL earnings.
4. Reporting Requirements: Athletes would likely be required to disclose all NIL deals entered into before enrollment, creating a transparent system for tracking and distribution.

the NCAA is also grappling with the logistical challenges of enforcing such a policy. Verifying NIL earnings from high school and junior college can be complex, and ensuring compliance across all institutions will require robust oversight. NCAA compliance departments will be crucial in navigating these new regulations.

Legal Hurdles and Potential Challenges

The proposed revenue-sharing model faces significant legal challenges. concerns have been raised about:

Antitrust issues: Critics argue that requiring athletes to share earnings with schools could violate antitrust laws, potentially leading to further legal battles.

Athlete Rights: Some argue that forcing athletes to relinquish a portion of their earnings infringes on their right to profit from their NIL.

Enforcement Difficulties: the NCAA’s ability to effectively enforce the policy, particularly with athletes entering from different states with varying NIL laws, is questionable.

State NIL laws: Many states have enacted their own NIL laws, which may conflict with any federal NCAA regulations. Navigating this patchwork of legislation will be a major undertaking.

impact on High School and Junior College Athletes

This potential change will significantly impact athletes before they even set foot on a college campus.

NIL Deal Negotiation: Athletes and their families may need to factor in potential revenue sharing when negotiating NIL deals.

Deal Structure: Deals might be structured differently to minimize the amount subject to university sharing.

Recruiting Considerations: Athletes may prioritize schools with more favorable revenue-sharing policies (or a lack thereof).

Transparency & Disclosure: Increased scrutiny of NIL activities at the high school and junior college levels is expected.

The Role of NIL Collectives in the New Landscape

NIL collectives, fan-driven organizations that pool funds to facilitate NIL deals for athletes, will also be affected.

Collective Transparency: Collectives